UnFriendly Skies Take a Well-Deserved Beating; FY-Infosys – Americans Getting on Payrolls; Paid Internships vs. Actual Job

Turbulent…

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The day of reckoning has finally come for airlines and their awful and questionably lawful treatment of its passengers. If you recall, the impetus for this day stemmed from a recent United Airlines flight, where a passenger, David Dao, was forcibly dragged off a plane and left with a litany of injuries including a concussion and broken teeth. So over at the House Transportation and Infrastructure Committee there was a hearing where airline execs insisted that they’ve been working to improve the situations that have been responsible for all the recent bad press. United CEO Oscar Munoz apologized again at the hearing for the recent tussle that cost his airline a presumably hefty settlement.  Of course plenty of blame has been pointed at unruly passengers. But then again who can blame them? Flights have gotten more crowded, equipment and tech failures have been resulting in delays on a fairly regular basis and obnoxious fees keep cropping up like a bad fungus. And don’t even get me started on the practice of over-booking flights. Apparently, a few airlines are rethinking their policies on that issue.  In the meantime, lawmakers are warning they’ll slap on major legislation if things don’t improve and they promise it wont be pretty.

Trump’d…

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A company based in India, with 200,000 employees worldwide, is now on the line to hire 10,000 workers in the U.S. Enter Infosys, one of a number of companies who engage in outsourcing – a four letter word according to the President – because the practice takes jobs away from Americans. Now, the company announced plans to open four new centers in the United States in the next two years. In the past, Infosys and other similar companies have relied on work visas for its employees. But now President Trump has ordered a major review and overhaul of that program. That’s expected to lead to some very unpleasant changes for companies who are used to employing foreigners in the United States, instead of tapping into the talent pool already present in the country. As for Infosys’s CEO, Vishal Sikka, who happens to be based in Palo Alto (oh, the irony), he explained that “…bringing in local talent and mixing that with the best of global talent in the times we are living in and the times we’re entering is the right thing to do. It is independent of the regulations and the visas.” Of course it is.

How do you like your coffee?

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If you’re not having the easiest time finding a job, maybe getting a position as an intern might be the better way to go. And leave it to Glassdoor to unearth the 25 highest paying internships in the United States. You see, the median annual salary in the U.S. for a full time worker is $51,350 – or about $4,300 a month. An internship gig at Facebook – provided you can even get one  – is worth $8,000 a month. Plus, as a Facebook intern, you get room and board, free food, transportation…Does it get any better than that? Just good luck. You’ll need it. Actually, you’ll really need computer science skills. But that’s besides the point. Microsoft comes in second with a paycheck that is about a thousand dollars less a month than what you’d get at Facebook. But former interns can’t stop raving about the projects they got to work on. Rounding out the third spot is ExxonMobil. While it’s not tech-related, it is a company that is highly focused on professional development of its interns. And who couldn’t use some of that? Amazon and Apple take spots fifth and sixth, respectively, and they’ll both keep you in style for about $6,400 a month. While the tech companies seem to dominate much of the list, there are still plenty of opportunities to map out a career in banking. If you’re sure that’s your thing.

Jeff Bezos Hearts India; Lululemon’s Zen-tastic Earnings; Is Your CEO Listed? You Better Hope So

Next. Big. Thing…

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India is looking very flush these days as Amazon’s Jeff Bezos decided to throw $3 billion at it. That’s in addition to the $2 billion he gave the southeast Asian country back in 2014. He made this announcement at a meeting of business leaders in Washington DC that included Indian Prime Minister Narendra Modi. The reason why Bezos is showing India a lot of fiscal love is that it is Amazon’s fastest growing region, boasting 21 fulfillment centers and 45,000 employees. In other words, the e-commerce giant is banking on the “huge potential in the Indian economy.” Interestingly enough, Amazon can only sell its wares from its website through a third party, as mandated by Indian law. But that hasn’t been much of a problem for the e-tailer, who ironically, never seemed to adapt as easily to the local Chinese marketplace, and continues to struggle there and against the giant we call Alibaba. It’s worth noting that Amazon is not the only game in town, facing fierce competition from local e-commerce businesses, Flipkart and Snapdeal. But Amazon’s not sweating it since according to Morgan Stanley, it is estimated that consumers in India bought $16 billion worth of goods last year, more than $10.3 billion from the previous year. So clearly, there’s plenty of room on the Indian e-commerce playing field.

Lemonade mouth…

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Lululemon beat estimates and even raised its 2016 revenue forecast. So why is its founder and largest shareholder, Chip Wilson, in a snit? He’s probably still licking his executive wounds after being booted from his post for making stupid comments, among other short-comings. In a letter to shareholders last week, the 14.2% stakeholder ripped into the current directors because he feels that they can’t keep up the pace against other athletic apparel companies like Nike and Under Armour, to name a few. Wilson would like it very much if there was an annual election that would make the board of directors accountable for earnings results and, presumably, get him reinstated as CEO. As it stands, the current leadership, helmed by Laurent Potdevin, would probably be delighted to be held accountable for Lululemon’s latest earnings considering how well it performed. Sure, the retailer missed profits by just a penny, falling 5% to $45.3 million, yet still earning 30 cents a share. But shares are still up 27% for the year and the company had strong sales this quarter. It also found a way to control its inventory levels and, in the process, saw its revenue rise 17% to $495.5 million when analysts only thought it would pull down $487.7. So perhaps it’s time for Wilson to keep his thoughts to himself and just enjoy his burgeoning majority stake.

In case you were wondering…

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Glassdoor came out with its latest annual list, this time regaling us with the highest rated CEO’s. Bain & Company’s Bob Becheck tops the list with a 99% approval rating. Employees seemed to appreciate the support they receive from their boss, not to mention the company’s focus on professional development. And who doesn’t mind professional encouragement? But while Becheck scored the number one spot, two other CEO’s also received 99% approval ratings. So congrats to Ultimate Software’s Scott Scherr and McKinsey and Company’s Dominic Barton. Facebook’s Mark Zuckerberg kept his number 4 ranking from last year, while LinkedIn’s Jeff Weiner took fifth. Larry Page’s replacement at Google, Sundar Pichai, earned a 96% approval rating and the number seven spot, while Apple’s Tim Cook came in 8th, also with a 96% approval rating. Four women paved the way on this list, including Staffmark’s Lesa J. Francis, who took the 28th spot with a 94% approve rating, and Enterprise Holdings’ Pamela M. Nicholson, who graces the list at the number 31 spot, also with a 94% approval rating.

Get Your Resume Ready – The List of Highest Paying Companies is Out; Online Lending Risks Exposed; Home Sales Spring Forward

Benefits and all…

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Glassdoor just put out its latest list of companies that are better than yours. This time you get to hear the list of highest paying companies in America for 2016. In order to even be considered for the list, companies had to have at least 50 salary reports on Glassdoor. The top spot goes to Chicago-based business consulting firm A.T. Kearney who pays its employees a median salary of $167,534. Strategy&, another consulting firm, ranked number two while tech firm Juniper Networks took the number three spot. With the exception of Visa, which came in at number 11, no other financial firms made the list of twenty five companies. Instead consulting firms and tech companies dominated the list. Consulting firms are all about contacts, connections and a ” who you know”culture. Other “barriers of entry” include a good reputation and specialized skills and knowledge. Which explains why they are willing to shell out big bucks for sky-high salaries. Tech companies, however, value”what you know” that leads to a “war for talent” in that industry. Incidentally, there’s a big shortage of skilled workers in tech. Just saying. As for other notable companies who made the list, Google weighed in at number 5, Facebook ranked twelfth and Twitter appeared at number 13.

Borrower’s remorse…

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Online payday loans might seem like a great idea to many, but have actually turned into a major nightmare after borrowers were hit hard with major bank fees and account closures. The Consumer Financial Protection Bureau conducted a study – its third in the industry – and found that about half of the borrowers who took out these high-interest loans had to eat a $185 bank penalty for overdraft and non-sufficient funds fees.  In case you were wondering, that high-interest rate is 300% – 500% on an unsecured loan.  Ironically, and tragically, I might add, this type of loan is favored by low-income consumers who use the method to pay off expenses in between paychecks. The penalties were incurred when the online lenders submitted repayment requests to the borrower’s bank. But if the accounts were low, and they usually were, the borrower got slapped with heavy fees. Online lenders would make repeated debit attempts on borrowers accounts, adding their own fees on top of the bank fees incurred. For the first unsuccessful debit repayment, the online lender would hit the borrower with a $97 penalty. A second unsuccessful debit repayment resulted in a $50 penalty. If multiple requests were made in a single day, the borrower would have to eat another $39. As a result, 23% of borrowers in the study had their accounts closed at the end of the 18 month period of the study. Fortunately, new regulations are on the horizon. It’s just too bad that no one is discussing the possibility of any retroactive recourse for the credit-scarred borrowers.

Home run…

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Existing home sales are up for March, according to the National Association of Realtors and Wall Street is rejoicing since February’s 7% decrease still induces cringing . Economists only predicted that sales would go up around 4% at an annual rate of 5.28 million, but instead they were up over 5% at an annual rate of 5.33 million homes. No doubt a healthy labor market and low mortgage rates contributed to those lovely figures and analysts feel secure in saying that it signals a strong start to the spring selling season. The median sale price of a home is sitting at $222,700, a 5.7% increase over last year at this time. Sales are up in all four of the country’s regions, with a big 11% boost in the Northeast. Unfortunately, sales at both the low and high ends weren’t as impressive, with a big shortage plaguing the low-end. The homes that sold in March sat on the market for an average of 47 days as opposed to February’s home sales that sat on the market for an average of 59 days.  Approximately 30% of the homes sold in March were purchased by first-time homebuyers while mortgage applications rose to their highest levels in nine weeks.

 

The List of Best Companies is Here; Sports Authority Calls it a Game, Files for Bankruptcy; Angie’s List Free as a Bird Now

In good company…

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Because there’s nothing like a list to grab your attention these days, Fortune Magazine just published its latest list of the “100 Best Companies to Work For.”  For the seventh year in a row, Google tops the list. And how could it not? After all, Vince Vaughn and Owen Wilson did make a movie about being interns there, so how could it not be the best company to work for? The Container Store takes the 14 spot. As a customer, I already spend inordinate amounts of time in their stores fantasizing about how organized I could become. Hmm. Maybe I should check the company’s job board. Recreational sporting goods company REI snags the 26th spot. If you recall, they made Glassdoor’s list of companies with the best perks.  Good perks make for happy employees who vote for their own companies to win big on these lists. Publix Supermarket came in at 67. As the largest employee-owned company, Publix has extremely low-turnover and plenty of perks that keep employees satisfied for decades. You might want to check if your company is on the list. If not, then consider tidying up your LinkedIn profile as there are currently over 100,000 job openings at these companies that are just waiting to be filled.

Disregard for authority…

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Sports Authority has gone bust and is set to start closing its doors at about 140 locations as early as tomorrow, including 25 stores in Texas and 19 in California. Sports Authority managed to rack up $1.1 billion debt as it failed to keep up with current consumer trends. There’s a chance that another company will pick up Sports Authority’s debt-riddled pieces and give the sporting goods company a second profitable chance. But if April comes along and Sports Authority has no buyer, it will throw in the proverbial fiscal towel and close down its remaining locations. If you have any gift cards for Sports Authority, you might want to use ‘em up NOW while Sports Authority still honors them. Need to return or exchange merchandise? Good news! You still can…as long as you’re near one that didn’t close. Warranty related issues keeping you awake at night. No worries. Sports Authority can still service those items. Sports Authority is even carrying on with its customer loyalty program (there’s a joke in there somewhere) – at the locations that are still open anyway.

Free ‘em up…

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Angie’s List will now be free for the masses. Sort of. The review site will now allow visitors to read reviews and ratings…without having to fork over the security codes on their credit cards. However, tiered subscription services will be offered to those looking for a few extra benefits not included in freemium subscriptions. There’s going to be a $24.99 silver subscription and a $99.99 gold subscription. While those offers might seem a little pricey, they come with big benefits like an emergency service hotline and fair price guarantees. A small price to pay for some big peace of mind. Even though the company went public way back in 2011, it didn’t churn out its first annual profit until 2015. But today, shares went up almost 4% on the news, especially because this freebie subscription idea was all part of a bigger plan to help the company grow and make it more profitable. It’s also a major reason why the site dissed IAC’s HomeAdvisor’s bid last year. Angie’s List found the $512 million, $8.75 per share bid a lowball offer and said it undervalued the site. According to CEO Scott Durchslag, who has held his post for just six months, the current model made it harder for the company to grow. Besides, the company felt that millennials aren’t going to bother paying for reviews and it does seem to be all about those pesky millennials lately, doesn’t it? Angie’s List did have to revise its full year guidance and now expects to take in between $345 million and $355 million when analysts were expecting numbers closer to $362 million. The reason being is that 20% of the company’s revenue comes from those subscriptions. However, the company now figures that, going forward, it will be able to hit $750 million by by 2020. Angie’s List brass are expecting to “see traffic explode” under this new model.” The site currently has approximately 3.3 million subscribers but expect that number to catapult real soon.

Comcast: Streaming Video is so Last Year; Holy-Moly Guacamole, Chipotle is Losing Dinero; The Ultimate Biz Perks List

Who-lu?

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If online streaming video services are phasing out cable, you’d never know it judging by Comcast’s latest earnings. The company actually picked up 89,000 new subscribers – more than any other quarter in the last eight years. It was a particularly remarkable feat considering that last year at this time, the largest U.S. cable operator in the country only gained 6,000 subscribers. This means that for the year, Comcast only lost 36,000 subscribers. And yeah, that’s really good news. It’s really good because in 2014 Comcast lost over 194,000 subscribers. Time Warner Cable also announced it had picked up new subscribers. But Comcast did so well that it decided to raise it’s dividend by 10% to $1.10 – which was awfully generous of them. The nation’s leading high-speed internet operator managed to give a decent beating to analysts expectations earning $19.25 billion in revenue- an 8.5% increase over last year – instead of the projected $18.76 billion.  Comcast’s profits were up 5.2%, coming in at $2 billion, and adding 81 cents per share – just a teeny tiny penny below predictions. Oh well, maybe next time. Knowing that it’s future is/was on the line, Comcast has been trying to stay relevant in an age where streaming online video is all the rage. The company has been whipping out its fiscal A-game, offering better customer service, set-top box enhancements and smaller, more enticing bundles for current and prospective subscribers. Apparently it’s working.

The plot thickens…

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Just when you thought it was safe to go back in the fiscal Chipotle waters, along comes a subpoena, courtesy of a federal criminal probe stemming from a noro-virus outbreak in sunny California. Chipotle now needs to cough up documents going all the way back to January of 2013 and that’s not all. While Chipotle thought the worst was behind it, following the incredibly brutal E.Coli outbreak in some of its restaurants, the company announced that this year will be muy mal for investors. With huge marketing efforts in the wings, along with Herculean efforts to become the gold standard in food safety, Chipotle should be able to stay afloat. But it wont be pretty. The company’s fourth quarter earnings were pretty dismal with sales down more than a third and a whopping $10 billion shaved off its market cap. Apple and Alphabet  it is not. And with any bad news on Wall Street, particularly where there’s a subpoena involved, shares tumbled almost 3% and closed at 461.92.

Very perk-y…

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Glassdoor has served up yet another list to remind you just how badly you need to find a new place to work. This time, the company is ranking other companies according to how friggin’ awesome their employee perks are. For instance, does your current place of employment offer you “Yay Days”? Didn’t think so. But, if you score a position at REI, you get two of ’em – that’s two paid days off to spend on an outdoor activity. Does your boss currently give you $500 to use towards travel? Didn’t think so again. In which case, you ought to check Airbnb’s job board because that company gives you that much money towards travel every quarter so long as that cash is used on Airbnb accommodations (otherwise, no dice).  Burton, purveyor of fine snowboards and accompanying gear, gives its employees season passes to the local slopes. Then there’s software provider Epic Systems that generously gives its employees a four-week paid sabbatical every five years. If you want to feel even worse about where you work, visit Glassdoor for the rest of the list top ranking companies and the amazing perks they offer.

 

 

Awesome Intel; Who is America’s Favorite CEO?; Marriott’s Letting Guests Stream it Up;

Friggin’ awesome…

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Image courtesy of koratmember/FreeDigitalPhotos.net

“There are plenty of women- and minority-led startup companies, and we want to work with them,”  Lisa Lambert, vice president and managing director at Intel Capital. So why did she say that? Because Intel super-graciously – and presciently – announced its Capital Diversity Fund, specifically set up for women and minority-led start-ups in an effort to mix things up in Silicon Valley. It would seem that the locale already has a rather large presence of white, male CEO’s and Intel would like to make it a little bit more…colorful.  Intel CEO Brian Krzanich would even like to have Intel’s work force, which is currently 24% female and 12% black and Hispanic, come to resemble the U.S. workforce, which is 47% women and 26% black and Hispanic, by 2020. To qualify for some of this cash, the founder of the company must be a woman or minority, and the company must have at least three executives who are women and/or minorities.  There are already a few companies who are getting funding including cyber-security firm Venafi, CareCloud and MarkOne – which makes smart cups. If you’re curious about how smart those cup are, you’ll have to find out yourself. As Mr. Krzanich put it, “…as you seek out diverse points of view, you’re going to produce better returns.” And who doesn’t like better returns?

Did your boss make the list?

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Image courtesy of iosphere/FreeDigitalPhotos.net

If your boss didn’t make the list, maybe consider taking your skills and LinkedIn endorsements elsewhere. You might consider finding gainful employment at Google since Larry Page takes the top spot with a 97% approval rating, according to online job and salary review site Glassdoor.com.  Nike’s Mark Parker, took second just barely missing the top spot by a few thousandths percentage points. Charles Butt, owner of the Texas grocery chain HEB  takes third, with help form a company philosophy that values the welfare of its workforce. And because of that awesome culture you are forbidden to make fun of his last name.  Billionaire Mark Zuckerberg came in fourth  while the aforementioned Brian M. Krzanich, who just announced Intel’s incredible new fund for women and minority-run startups, only came in at number 39. But he still had a 90% approval rating. Oddly enough, LinkedIn’s CEO Jeff Weiner rocked first place back in 2014 with an approval rating of 100%, yet this year his ranking plunged to number 12. However, even with that big drop, Weiner still scored a 93% approval rating. The question is: what exactly did Jeff Weiner do to tick off that other 7%? Hmmm. Something to think about.

Everyone’s a winner…

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Image courtesy of Supertrooper/FreeDigitalPhotos.net

Apparently, Marriott discovered that those super awesome televisions daintily mounted on the walls of the guest rooms weren’t getting much use, as more and more guests were using their tablet, laptops and phones (oh my) to access streaming entertainment. And with those handy, entertaining devices, guests found that that they didn’t have to go through the annoying process of acquainting themselves with a new remote and channel guide. Ugh. So what do? You can’t just chuck those state of the art electronics to the curb. Or can you? Well, no you can’t. Instead, Marriott is teaming up with streaming entertainment service Netflix that will allow Marriott guests to access their Netflix accounts or even sign up for new ones. So next time you need to choose between a Marriott Hotel and some other place to rest your head for the night, now you can take into consideration which hotel has the better in-room entertainment – and mini bar.

Where in the World is Über?; Harvard Professor Gives Whole New Meaning to Chinese Take-out; See Which Company Made “The List”

Mo’ money, mo problems…

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Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Über just picked up another $1.2 billion in funding and is now valued at $40 billon. Awesome, right? Not even close. On the heels of its most recent “tracking-customers” scandal comes even more…problems. So on which part of the globe should we begin? How about Portland, Oregon? You might have downloaded the Über app there but don’t bother using it. Hours after it launched, the city put the kibosh on the ride-sharing device. In Über’s home state of California, San Francisco D.A. George Gascón and Los Angeles D.A. Jackie Lacey have filed suit against Über for, among other issues, not being totally honest about the quality of the background checks it conducts on its drivers. Which brings us to Chicago where an Über driver allegedly raped a female rider. And just because gambling and prostitution is legal in Nevada, that doesn’t mean Über is. Yes, oddly enough, it’s banned there too. On the other side of the pond, good luck finding an Über ride. Denmark and Norway have filed complaints, a Dutch court ruled it illegal, France has yet to decide, while Spain already but the brakes on Über’s operations. In Asia, Thailand also nixed the service and India’s having huge issues with it as well. But on his blog, Travis Kalanick did mention that Über operates in 250 cities on 50 countries. He must mean on a different planet.

Can I get the sauce on the side?

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Image courtesy of patrisyu/FreeDigitalPhotos.net

If you’re going to overcharge your clientele, you best make sure they aren’t professors from Harvard’s Business School. Just ask Sichuan Garden’s Ran Duan. Except, he’s not so talkative lately. When Professor Benjamin Edelman ordered four dishes from the Boston eatery, he was over-charged a dollar more than the advertised price on the restaurant’s website.  So Professor Edelman, who, by the way,  fiercely and diligently took on the airline industry for misrepresenting fees, did the same with Mr. Duan. First, the professor suggested that Sichuan Garden refund him three times the amount of the over-charge. Mr. Duan, instead, offered to refund $3.00. After several emails were exchanged, which seemed to only fuel Professor Edelman’s irritation, he decided it was time to take the issue to the regulators, just as he had done with the airlines.  The lesson is? Well, there are several, aren’t there.

You call this work?

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Image courtesy of portal/FreeDigitalPhotos.net

Is your company on Glassdoor’s 2015 50 Best Places to Work list? If not, maybe it’s time to polish your resume and start spending lots of time on LinkedIn, which by the way, takes the number 23 spot. It’s no surprise, I guess that Google made the list. After all, didn’t Vince Vaughn and Owen Wilson make a movie just about being interns there? However, this was the first time Google took the top spot. Among the many storied perks behind the company is twelve weeks maternity leave…for the father. So where does that leave mom? With an additional six weeks’ quality time with baby. Thinking of trekking down to Antarctica? Bain and Company, which ranks second, has got an expedition with your name on it. Just make sure they have a position you can fill. Facebook ranks at lucky #13 with one employee writing about it: “Transparency. Trust. Compassion. Food.” ‘Nuff said. Got IT problems? Great. Grab a beer and talk it over at Zillow’s “IT Happy Hour.” The real estate site ranks 33. Who is not in the top 50? Glad you asked. Twitter is noticeably absent from top 50 this year presumably thanks to some management “changes.”