Become more informed in minutes....

A U.S. appeals court has ruled that Nasdaq cannot require companies listed on its exchange to include women, racial minorities, or LGBTQ individuals on their boards or explain their absence. The conservative-majority 5th U.S. Circuit Court of Appeals, based in New Orleans, found that the rules, approved by the U.S. Securities and Exchange Commission (SEC), violated federal securities law. The decision, a 9-8 ruling, is a significant victory for opponents of corporate diversity mandates. The challenge was led by conservative groups, including the National Center for Public Policy Research and the Alliance for Fair Board Recruitment, founded by Edward Blum, who previously led the successful Supreme Court case against race-conscious college admissions. Writing for the majority, Judge Andrew Oldham, a Trump appointee, said: "SEC has intruded into territory far outside its ordinary domain." Nasdaq, which believed its rule would benefit companies and investors, announced it would not appeal the decision. The SEC said it is reviewing the ruling, which could only be overturned by the Supreme Court. The case highlights a broader debate on the role of federal regulators in shaping corporate diversity policies.

 

Reuters

2025's top risk trends every CFO must know

With a new year approaching, financial leaders face a rapidly evolving risk landscape. Increasing AI adoption, regulatory shifts, and expanding third-party networks are just a few factors poised to impact your bottom line.
Gain expert insights on the top risk and compliance issues shaping 2025, including:

• AI’s growing role in compliance oversight
  
• Navigating new whistleblowing regulations
  
• Strengthening supply chain due diligence
  

Safeguard your growth goals with a proactive approach to compliance. Register now and get exclusive early access to the 2025 Risk Trends eBook.

Save your spot today.

 

Investment research and financial services firm Morningstar has appointed Michael Holt as its new chief financial officer, effective January 1st, when he will take over from Jason Dubinsky. Mr. Holt, who most recently served as the company's chief strategy officer, was also named president of the company’s research and investments group, overseeing a 400-person team responsible for Morningstar analysis and ratings.

 

CFO Dive

A new EY Institutional Investor Survey highlights growing skepticism and inaction within the investment community regarding ESG priorities. The survey of 350 decision-makers from global investment firms reveals a deepening concern over greenwashing, with 85% seeing it as worse problem than five years ago. Additionally, although 88% say their firms last year increased the use of ESG information, just 25% feel equipped to assess the long-term impacts of ESG initiatives. Nevertheless, 93% of investors maintain confidence that companies will meet decarbonization and sustainability goals. “Unchecked climate risks can spell disaster for companies and their financial backers . . . If the world is to stand any chance of hitting net zero goals, we’ll need trillions of dollars of funding and an investor community that treats sustainability as a source of value rather than purely as a risk," said Dr. Matthew Bell, EY Global Climate Change and Sustainability Services Leader.

 

ESG News

ESG Today

Macy's has revised its profit outlook downward following an investigation into an employee's scheme to conceal $151m in delivery expenses. The company reported that this misstatement will impact its gross margin and adjusted earnings per share by $79m for the full year, primarily affecting the fourth quarter. Consequently, Macy's adjusted its earnings forecast to a range of $2.25 to $2.50 per share, down from a previous high of $2.90. Chief executive Tony Spring said: "We've concluded our investigation and are strengthening our existing controls," without explaining how the erroneous entries were uncovered, or how they went undetected by auditor KPMG. The company is also facing pressure from Barington Capital Group and Thor Equities to restructure its real estate operations.

 

Accounting Today

New York Times

Wall Street Journal

Albertsons has officially abandoned its proposed $24.6bn merger with Kroger after federal and state judges blocked the deal. Chief executive Vivek Sankaran expressed disappointment, saying: “Given the recent federal and state court decisions to block our proposed merger with Kroger, we have made the difficult decision to terminate the merger agreement”. Following the court rulings, Albertsons filed a lawsuit against Kroger in Delaware's Court of Chancery, claiming that Kroger violated their merger agreement and failed to secure necessary regulatory approvals. Albertsons, the second-largest supermarket chain in the U.S., owns Safeway, while Kroger, the largest, owns Fred Meyer and QFC in the Northwest. "The Kroger-Albertsons deal always faced an uphill battle in its bid for approval", commented GlobalData managing director Neil Saunders. "Of all the cases the Federal Trade Commission has litigated over the past few years, this one was the most sensitive as it involved two huge firms supplying essential goods".

 

CBS News

Los Angeles Times

The Oregonian

Washington Post

Hershey's main controlling owner has reportedly rejected Mondelēz International's preliminary takeover offer, describing it as too low. Hershey Trust Co., which has around 80% of the voting power at the company, said the bid undervalues Hershey, which has a market capitalization of around $38bn. 

 

Bloomberg

Reuters

Arizona-based Blue Yonder, a company which provides supply chain management software to organizations including DHL, Starbucks and Walgreens, says it is investigating claims of data theft after a ransomware gang threatened to publish stolen documents, reports, and email lists. The company was hit by a cyberattack on November 21st, saying at the time that it was a “ransomware incident” but not indicating who was behind the attack. Last week, the Russia-linked “Termite” ransomware gang claimed responsibility for the attack. Blue Yonder spokesperson Marina Renneke said the company was “aware of who has claimed responsibility,” adding “We are aware that an unauthorized third party claims to have taken certain information from our systems . . . We are working diligently with external cybersecurity experts to address these claims. The investigation remains ongoing.”

 

Techcrunch

Sen. Ron Wyden (D-OR) and Sen. Elizabeth Warren (D-MA) have asked the chief executive of Toronto-based TD Bank to turn over information about how employees responded to a money-laundering scheme by a Flushing, Queens-based man named Da Ying Sze. A TD Bank spokeswoman said the lender was continuing to cooperate with prosecutors in ongoing investigations into individuals who laundered money through the bank. “We appreciate the concerns expressed by Sens Warren and Wyden,” the spokeswoman said. “TD has taken full responsibility for its AML [anti-money-laundering] program failures and is making significant investments and enhancements to meet regulatory obligations and help protect the financial system.”

 

Wall Street Journal

The U.S. federal budget deficit came in at $367bn in November, up 17% from a year earlier, the Treasury Department reported on Wednesday. It added that, without the acceleration of December payments for the Medicare and Social Security programs into November, the deficit last month would have been about $29bn, or 9% lower than last year. Government receipts rose 10% to $302bn, while outlays grew 14% to $669bn. The deficit for the first two months of the 2025 fiscal year, which began on October 1st, rose 64% to $624bn, a total that included a $4bn increase in Department of Homeland Security spending related to recent hurricanes and storms.

 

Reuters

The PCAOB has reported ongoing deficiencies in auditor communications with audit committees. The latest edition of the PCAOB's “Audit Focus” series aims to provide auditors, particularly those working with smaller public companies, with essential insights on improving these communications. “This edition of ‘Audit Focus’ highlights key reminders for auditors from the PCAOB standards and staff guidance related to audit committee communications,” the PCAOB stated. The series, which began last month, focuses on critical audit matters and aims to address common deficiencies while sharing best practices observed by the staff.

 

CPA Practice Advisor

TikTok has requested a pause on a U.S. law that mandates the sale or ban of the app, allowing the Supreme Court to review the case. The company argues that this delay would not pose an "imminent threat to national security" and would provide the incoming Trump administration time to assess the situation. TikTok warned that shutting down the app could lead to "irreparable injury" for its users and significantly impact U.S. small businesses, which could lose over $1bn in revenue if the app is banned for just a month. The law is set to take effect on January 19th, just before Trump's inauguration, and TikTok is urging the court to decide on emergency relief by December 16th.

 

Bloomberg Law

The Fast Company Executive Board network of leaders, experts, executives, and entrepreneurs share their best tips for encouraging human connection in a digital-first workplace. The strategies can help create meaningful connections, encourage collaboration, and build a supportive virtual culture, the Board members say.

 

Fast Company

The Alberta government has decided to cancel a foreign worker recruiting trip to the United Arab Emirates. The trip was tentatively scheduled for late February or early March next year. The ministry had planned to recruit skilled workers from the UAE as part of a 2025 international recruitment program. News of the initiative had raised concerns among labor leaders in Alberta, and had precipitated criticism from the Alberta Federation of Labour (AFL), including its president, Gil McGowan. "To see the Alberta government facilitating employers going overseas to find workers when there's plenty of people who could fill these positions, it's not just galling, it's completely unacceptable," McGowan said last week.

 

CBC News

The Globe and Mail

According to a report from Fidelity, the number of 401(k) millionaires in the U.S. increased by 9.5% in the third quarter, with Gen Xers leading the charge. The report reveals that 544,000 individuals now hold 401(k) accounts worth $1m or more, up from 497,000 in the previous quarter. Roger Stiles, president of Fidelity Wealth, said: “We are pleased to see Gen X retirement savers continue to make solid gains with their retirement savings.” The average balance for 401(k) millionaires reached $1.616m, reflecting a steady growth trend. Additionally, the average IRA account balance rose to $129,200, while the average 401(k) and 403(b) accounts saw increases of 23%. Despite these gains, Fidelity noted that two out of five workers cash out their 401(k) when changing jobs, which can lead to significant long-term financial consequences.

 

Fast Company