What's next for Big Tech? Kara Swisher one of the most connected reporters in the technology industry, will join us on Thursday at 11am for our next DealBook Debrief conference call. She will discuss how tech giants cope with the political and cultural storm of freedom of speech, the risks and opportunities created by the pandemic and more. R.S.V.P. here . (Do you want this in your inbox every morning? Sign up here .)
Facebook commits a riot
Facebook's hands-off approach to President Trump's post presents Mark Zuckerberg the most serious challenge to his leadership in the company's 15-year history. According to more than a dozen current and former employees, the Times spoke to reporters.
Hundreds of employees (virtually) left the job yesterday to protest the company's decision to allow inflammatory settings from the president on the platform.
• "The hateful rhetoric that advocates violence against black protesters by the US president does not guarantee defense under the guise of freedom of expression," an employee posted on Facebook in an internal message board.
Mr. Zuckerberg moved a weekly question and answer. with employees to today from later in the week, to address the criticism. At a gathering last Friday, Mr. Zuckerberg faced considerable anger over his explanation of why Trump's speech about the use of "state power" differed from other threats of violence, which have been removed from the platform.
Rare public criticism of the company by employees is news on the front page with stories that flood the media today, with grips both on and off the record. Make your choice:
• “Facebook employees make virtual walkout to protest Trump posts” (NEW)
• “Handling Trump posts Ask Facebook staff to arrange virtual walkout” (WSJ)  • “Facebook employees revolt over Zuckerberg's attitude to Trump” (FT)
The last word, from the markets : What crisis? Facebook's shares closed up 3 percent yesterday. Trading in the premarket this morning suggests that they could come close to setting a record high today.
The corporate world struggles with the protests
George Floyd "could be me," Ken Frazier of Merck, one of four black CEOs of Fortune 500 companies, told Andrew on CNBC's "Squawk Box" yesterday. Frazier was one of the first corporate executives to reprimand President Trump after Trump equalized in his response to the white nationalist violence in Charlottesville, Va., In 2017.
YouTube executives urged employees to resign today for to "focus on how to improve gender equality," the information reported. Lyor Cohen, the music service's music director, said he would cancel all meetings, urging his workers to "reflect, give yourself room to process or take action in ways that feel right to you."
Dealers continue to express empathy for protesters even as they board stores and stop operations, writes Sapna Maheshwari and Michael Corkery of The Times. “We can fix the damage to our stores. Windows and goods can be replaced, Nordstrøm said in a statement. "We continue to believe as strongly as ever that huge change is needed to address the issues that black people face in our country today."
Deal Professor: Elon Musk's Billions of Pay Days
Steven Davidoff Solomon also known as Deal Professor, lecturer at UC Berkeley School of Law and faculty associate director at Berkeley Center for Law, Business and Economy. Here he considers the significance of Elon Musk's unusually lucrative pay package .
This past week was a good one for Elon Musk, and not just because of SpaceX's successful crew of spacecraft. Tesla awarded him more than $ 1.5 billion in stock as part of a pay package, with incentives that could eventually be worth around $ 55 billion.
To understand this potential payday, and what it means for business and society, you have to think on Instagram.
The founders of the social network, Mike Krieger and Kevin Systrom, sold the business to Facebook for a billion dollars in 2012. At that time, the figure seemed incredibly high. Still, Mr. Krieger and Systrom helped build Instagram into a business now worth over $ 100 billion – just for abruptly ended in 2018 over disagreements with Mark Zuckerberg.
They lost a major payday not because they sold too little, but because their pay packages on Facebook ended up being lean compared to the value Mr. Zuckerberg got from the deal.
The lesson many founders take from Instagram is, "don't sell too soon, too little." But Musk's pay agreement for 2018 shows how executives can reap even more money, year in and out, by sticking around:
• He doesn't earn wages, but gets 12 sets of options that win when Tesla hits different milestones related to market capital , Revenue and Revenue.
• The first tranche, worth $ 1.5 billion at current share prices, was triggered when Tesla's market capital held over $ 100 billion for six months.
• Future lots are released for each additional $ 50 billion added to the company's market value. Tesla is now worth around $ 165 billion, which means Musk is likely to receive another portion by the end of the year.
This is the symbol of salary for performance: Mr. Musk makes money only if the shareholders earn even more.
But who deserves the win? The Instagram case posed this as a matter of shareholders (Mr. Zuckerberg) versus the founders (Mr. Krieger and Mr. Systrom). But in the new era of stakeholder capitalism, what about labor, society and others? This question may be more relevant if Mr. Musk moves out of California to a low-tax jurisdiction like Nevada or Texas.
In other words, it's not about Musk deserving the pay, but who else shares the reward along the way.
Puerto Rico's bankruptcy survives a challenge in the Supreme Court
Yesterday, the Supreme Court unanimously decided against a hedge fund and a union that challenged constitutional control to the board created by Congress in 2016 to repair Puerto Rico & # 39; s ruined economy. At stake were deals that affected millions of people on the island and beyond.
"This is a real case about real things," Justice Minister Samuel Alito said at oral arguments in October last year. Specifically, it is about the largest state bankruptcy in US history, which can set a precedent for pandemic-hit states struggling with debt. Puerto Rico's Economic Supervisory Board put in place a plan last year to cut its territory debt by a third, from $ 129 billion to $ 86 billion.
Attorneys rejected an attempt to undo the restructuring. The hedge fund Aurelius Investment said the board lacked authority to act because its members were not confirmed by the Senate. (The company spent years fighting Argentina in court for a better deal with that country's defaulted debt.) Federal appointments require confirmation by the Senate, but federal officers working in a local capacity – like Puerto Rico board members – do not, .
Several problems for bondholders loom with the board recently estimating it will have $ 15 billion less than expected over the next decade to repay Puerto Rico debt, due to the pandemic's impact on the island's economy.
the cost of the corona virus
The pandemic has clearly struck the US economy. The non-partisan congressional budget office released yesterday how damaging the damage will be.
The agency estimates it would cost $ 7.9 trillion in G.D.P. over the next decade, mainly because consumers and businesses will drain spending in the years to come. The economy is not expected to return to its pre-pandemic trend by the end of 2029.
Amazon's latest coup
Shoppers expect low prices from the e-commerce giant, but Amazon scored some of its owner yesterday when it sold $ 10 billion worth of bonds at a bottom price.
Part of the debt was sold at an interest rate of only 0.4 percent reports the Financial Times. The newspaper notes that this rate for three-year notes is barely above the equivalent of government debt, and set the record for the lowest interest rate ever recorded for a borrower in the US bond market at that maturity.
It is the latest sign of hunger for blue chip debt driven by Fed programs that effectively guarantee huge swathes of the bond market.
• Steward Health Care plans to announce today that it has bought back control from the investment firm Cerberus, and became one of the largest physician-owned and operated healthcare services in the United States  • One of China's largest chip manufacturers, Semiconductor Manufacturing International Corporation, requested a Shanghai stock exchange listing to raise $ 2.8 billion. (CNBC)
• Talk about tough timing: Viagogo, the electronic ticketing company, finalized a $ 4 billion deal to buy rival StubHub from eBay in February – just before the pandemic stopped all live events. ( Forbes)
Policy and Politics
• The Office of the Comptroller of the Currency, who oversees the nation's largest banks, warned that face masks worn for coronavirus protection could help bank robbers. (NEW)
• Twitter flagged a tweet by Representative Matt Gaetz, Florida Republican, for violating his rules against glorifying violence. (NEW)
• Why President Trump's Twitter attack is good for the social networking business. (Bloomberg)
Best of the rest
• Dealer's last headache: what to do with mountains of unsold clothing. (Reuters)
• Pandora, the jewelry giant, says it will only use recycled gold and silver by 2025. (FT)
• The expensive SpaceX space suits? The astronauts who wore them to the launch last weekend give them a "5-star review." (NEW, Business Insider)
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