Game on Oprah! John Oliver’s $15M Giveaway; Fortune 500 Companies’ Latest Surprises; Burberry Boss Paycheck Getting a Whole Lot Smaller

New queen of daytime…

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Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Move over Oprah. John Oliver just achieved god-status in the television talk show realm after buying nearly $15 million in medical debt and then forgiving it. Poof. Just like that. On his latest show “This Week Tonight with John Oliver,” the talk-show host took on the debt collecting/buying industry, which can be dubbed “shady” at best. Oliver said, “It is pretty clear by now (that) debt buying is a grimy business, and badly needs more oversight, because as it stands any idiot can get into it.” So John Oliver did “get into it,” and spent just $50 to start his very own debt collection company called Central Asset Recovery Professional aka CARP. It’s no coincidence, he pointed out, that the company is named after the bottom-feeding fish. Oliver’s company was almost immediately offered close to $15 million in medical debt from 9,000 Americans, social security numbers, names and addresses included, for just half a cent on the dollar. In case you were wondering, that came out to about $60,000. Then, with the simple push of a red button, John Oliver, forgave the debt, presumably with funds from his own bank account. But most importantly, Oliver easily trumped Oprah Winfrey’s 2004 television giveaway, when she gave out $8 million worth of cars to 276 audience members. And he didn’t even do it for ratings. Sort of.

Rank and file…

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Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Fortune Magazine’s annual list of the biggest 500 companies by revenue for fiscal 2015 is out and it was Netflix that was making big waves this year. The video streaming site, which launched in 130 new countries in January, and was the top fiscal performer for 2015, ticked up 95 spots to the 379th spot. However, while the climb was quite impressive, there are still 378 companies that rank higher than Netflix. Rounding out those top spots are Walmart, ExxonMobil, Apple and Berkshire Hathaway. No big surprises there. Apple, by the way, which moved up to two spots from last year’s fifth place, was the most profitable company on the list, earning $53 billion for fiscal 2015. Companies including GM, Ford and AT&T also cracked the top ten with Amazon landing at number 18 and Walgreens following close behind at number 19. Microsoft managed to crack the top 25 for the first time ever as Facebook climbed 85 spots this year to claim its 157th ranking. Interestingly enough, more than half of the companies on the list saw a drop in sales, with energy companies taking the biggest beating of all.

Pay raze…

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Image courtesy of renjith krishnan/FreeDigitalPhotos.net

The CEO of Burberry Group PLC, Christopher Bailey, will now have to switch to generic brands when he goes grocery shopping. After failing miserably to post respectable earnings results, the dapper exec will watch as 75% his paycheck vanishes into thin air. The CEO, who also serves as the Chief Creative Officer – and herein, might lay the problem –  will earn a paltry $2.74 million this year, a far cry from the $10.8 million he scored last year. Shareholders are also withholding his bonus for missing profit targets. That might seem a bit harsh, but shareholders in hundreds of companies are getting fed up with massive executive salaries that are completely at odds with results. Bailey, however, is not the only executive at the company who will be experiencing the fiscal wrath of the Burberry shareholders. Executive directors at the fashion house will also be stripped of their bonuses this year, because after all, it’s not like Bailey was solely responsible for shares of Burberry taking a 35% hit in the last twelve months. Burberry has announced that it will implement a cost-cutting plan – that has little to do with Bailey’s pay cut – in addition to a share-buyback program. Prudent moves when a companies reports disappointing fiscal earnings. But the earnings may not be entirely Bailey’s fault. Consider that 40% of Burberry sales come from the Chinese, who are in the midst of their own fiscal woes.

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Michael Bolton: IRS = Anus of Our Country; NY AG Schneiderman Takes Issues With Shifty Shift Practices; Rank and File: Airlines Get Graded

How am I supposed to live without you?

Image courtesy of hywards/FreeDigitalPhotos.net

Image courtesy of hywards/FreeDigitalPhotos.net

With tax day on Wednesday, John Oliver, host of HBO’s Last Week Tonight thoughtfully explained our national aversion to taxes and the IRS: namely, they involve “someone taking our money and math.” To further complicate things and strengthen our aversion, Congress has drastically cut funding to the IRS, causing activity at the agency to come to an almost virtual standstill. Mr. Oliver urged us to redirect our anger, rage and frustration at Congress and not the folks at the IRS who perform “a dangerously boring job.” So what better way to pay tribute to the IRS than to call it the “anus of our country” which is precisely what, crooner Michael Bolton did, on John Oliver’s show, when he sang a not-so-moving ballad that was sort of meant to be a show  “… of reluctant support for their appropriate funding.”  To help taxpayers truly grasp the anus/IRS comparison, Mr. Oliver articulately explained that we should, “Think of our government as a body. The IRS is the anus: It’s nobody’s favorite part, but you need that thing working properly or everything goes to s–t real quick.” Pure poetry.

Oh shift!

Image courtesy of  iosphere/FreeDigitalPhotos.net

Image courtesy of iosphere/FreeDigitalPhotos.net

More than a dozen retailers are getting probed for some shifty shift scheduling practices that are not only downright rude, but according to New York Attorney General Eric Schneiderman, might just be illegal, as well. The practice in question, dubbed”on-call shifts” basically lets hourly wage employees know if they will be working only hours before they need to show up for work. The practice is not cool for so many reasons. First, for many employees, the practice does not give them ample time to make care-giving arrangements for children and and elders in their care. “On-call shifts” also don’t allow for employees to make other arrangements for alternative sources of income.  If an employee reports for work for which they had been scheduled, then according to New York State law, that employee is entitled to be paid for four hours of work at basic minimum wage. Some of the big retailers who were sent letters about their shift scheduling practices include Target, The Gap, Abercrombie & Fitch, J.C. Penney and J. Crew.

Would you like some pretzels with that?

Image courtesy of bplanet/FreeDigitalPhotos.net

Image courtesy of bplanet/FreeDigitalPhotos.net

The 25th annual Airline Quality Report is out and the least shocking observation on it is Virgin America taking the top spot for the third year in a row. If you’ve ever flown Virgin America, and also American Airlines, then you’ll clearly see why Virgin America gets the top spot while American – which merged with US Airways – doesn’t. However, American still managed to snag the number seven spot. A bit high, if you ask me. In fact, I am shocked that American isn’t in last place. Its regionally operated Envoy/American Eagle airline does place last, though. Yikes. The report, which measures airline performance quality, takes into account four major aspects – or as the pros say “core elements”: on-time performance, involuntary denied boardings, mishandled baggage and customer complaints. No doubt, if the AQR measured how travelers were treated, I am certain American/US Airways would have claimed the last spot. In any case, Hawaiian Airlines came in at number. Too bad it doesnt fly anywhere I need to go. Delta took the number three spot, the only large carrier to break into the top four, while some were left scratching their heads over JetBlue’s fourth place ranking, since the airline came in second last year.