“Shark Tank” star investor Kevin O’Leary told Fox News Monday that corporate boards, which have long held fiduciary responsibilities to shareholders, have caused losses of nearly $15 billion in market caps. He told Fox News on Monday that he is reviewing how Target became involved in the massive social scandal. .
Since the backlash over the Pride merchandising controversy, Target’s market value has fallen more than $13 billion to $60.24 billion as of Monday’s close. O’Leary Ventures president O’Leary Ventures said how U.S. companies address certain concerns, such as the process that led to Target’s “unprecedented” cliffhanger, will likely result in a complete shift in the future. rice field.
“On the one hand, companies want to show their support for diversity in whatever mandate society is openly debating,” he told Jesse Watters Primetime. On the other hand, from a corporate job, especially from an investor’s perspective, retirees who own the S&P 500 or target stocks, for example, worry they’re lost. In terms of what the ultimate goal is: customers, employees and shareholders. “
“So the market has proven to be really, really punishing if you stray too far or start to stray too far from your primary mission. And the market has awakened all sorts of commissions,” O’Leary said. emphasized Mr.
Rushmore Mountains Shutdown, Target Backing Group Pushing U.S. Demilitarization
Kevin O’Leary, Chairman of Oshares ETF (Ting Sheng/Bloomberg via Getty Images)
The Minneapolis-based retail giant recently treaded controversial territory after its “tuck-friendly” swimwear for the transgender community sparked national outrage.
In the aftermath, the nonprofit foundation, led by the company’s senior financial officer, has funded and demilitarized groups seeking to cede U.S. territories, including Mount Rushmore, over claims that it is a symbol of white supremacy. made worse by a Fox News Digital investigation that found that Out of concern about “violence”, the military[ce]. “
O’Leary suggested the uproar may have been fueled by the speed at which news about the target’s behavior spread on social media, adding that many corporate boards don’t always consider the power of viral word of mouth. rice field.
“Obviously when you lose control of your message through social media, it’s better to know what you’re sending out before you go out there,” he said.
Corporate governance often stems from the investment firms involved: Former Anheuser-Busch executive
Target CEO Brian Cornell sent a letter to employees defending the company’s handling of the Pride Collection. (Paul Weaver/SOPA Images/LightRocket via Getty Images REUTERS/Shannon Stapleton)
“The board almost needs new committees. We have a committee on risk, coverage, and we have a compliance committee. I need a communications/media committee to do that.” I don’t have Facebook or use LinkedIn. “
O’Leary said that in an age of instant social media communication, many boards still don’t understand the “inherent risks” that come with their actions.
He named Anheuser-Busch, which for decades made Bud Light the best-selling beer in its category in the U.S., but after partnering with transgender socialite Dylan Mulvaney, he said, “32 Hours ‘ pointed out that the brand had collapsed.
O’Leary concluded that diversity officers will continue to be part of the board and the question is how they will use their powers and their appropriation.
“I don’t think many people will say, ‘Oh, let’s not have a diversity officer.’ I think the ship has sailed. “It’s clearly measurable that the company is in trouble because of the power of unmanaged social media,” he said.
“When you lose $11 billion in market capitalization, there are a lot of unhappy cowboys out there. They are called investors.”
He speculated that Target CEO Brian Cornell knew nothing about the Mount Rushmore opposition.
Shortly before O’Leary’s comments, Elon Musk publicly predicted a class action lawsuit by target shareholders in response to conservative commentator Charlie Kirk’s report that JPMorgan had just downgraded the company’s shares.
