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A study published earlier month in the Journal of Accounting Research which used artificial intelligence (AI) to analyze speech recordings of CEOs has helped to identify factors that could contribute to diagnosing mental health challenges among executives. Nargess Golshan, assistant professor of accounting at Indiana University and co-author of the study, said: “We want to really highlight mental health in leadership roles and how prevalent it is,” continuing: "Of course, it is important for the personal health of these executives, but also has far-reaching implications for the organization, the employees, the investors, and the broader economy.” Fortune notes that "Earnings calls are an optimal way to collect data because they feature long, uninterrupted periods of talking and usually aren’t confounded by visual communication cues like hand gestures." Among over 14,500 CEOs studied, more than 9,500 were classified as having depression using analysis from the machine learning model. 

 

Fortune

U.S. President Donald Trump plans to use his executive powers to reduce the regulatory burden faced by cryptocurrency companies and promote digital asset adoption in his first few days in office, say people briefed on the plan. Trump is expected to sign an executive order creating a crypto advisory council, an idea he first mentioned in July last year. The council, which would help advise the government on crypto-friendly policy, could have as many as 20 members, say sources. It is also expected that Trump will order the end of what has been called "Operation Choke Point 2.0" - the term used by executives in the crypto sector to describe what they claim has been a concerted effort by bank regulators to prevent crypto companies entering the traditional financial system by instructing lenders to deny them services. Also being considered is the creation of a national Bitcoin stockpile, which would encompass the government’s existing $20bn holdings of the world’s biggest cryptocurrency.

 

Bloomberg

Reuters

Steven Wasserman, consulting financial chief and lecturer of finance, writes in Forbes on networking strategies, citing research which shows that with 70% of all jobs not published publicly on jobs sites, up to 80% of positions are filled as a result of personal and professional connections. He advises that "CFOs in transition should meet the CEOs and Board members who they have previously worked with as well as request introductions to others. CEOs and other board members can assist with networking for all size companies, and in both publicly held and privately held companies." He believes that law firms and accounting firms can often be particularly helpful to CFOs in terms of arranging networking meetings, stating that "Professional service providers can assist with networking for all size companies, and in both publicly held and privately held companies."

 

Forbes

Goldman Sachs has increased chief executive David Solomon's pay by 26% to $39m, alongside a $80m retention plan aimed at retaining top talent amid fierce competition from rivals. The five-year retention plan indicates that Solomon, 63, is expected to lead the bank until at least the end of the decade. This new compensation package includes performance-based bonuses linked to the bank's alternative asset funds, marking a shift in how U.S. investment banks are compensating senior staff, and aligning more closely with practices in profitable buyout firms.

 

USA Today

The U.S. Federal Reserve has announced its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS), saying the group's expanded focus exceeds its statutory mandate. The Fed, which joined the NGFS in 2020, said: "The Fed has a limited role to play" in climate policy, and stressed that such responsibilities lie with Congress. The decision came just days before President-elect Donald Trump, known for his skepticism towards climate policies, assumes office. Although the Fed has made some efforts to incorporate climate considerations into its operations, Chair Jerome Powell has consistently maintained that the central bank is not tasked with setting climate change policy.

 

Reuters

The National Association of Manufacturers (NAM) claims that nearly 6m American jobs are at stake if President-elect Donald Trump's 2017 tax cuts expire. A study conducted by EY on behalf of the trade group also found that the U.S. economy will face $540bn in lost wages and a $1.089tn GDP shortfall if the remaining Tax Cuts and Jobs Act provisions expire. "The time to act is now. Millions of American workers are depending on the manufacturing sector to continue driving America forward," NAM president and chief executive Jay Timmons said. "Manufacturers kept our promises to create jobs, raise wages and benefits and invest in our community. By acting now, policymakers can choose economic growth over economic disaster and protect American livelihoods." NAM claims congressional inaction risks higher taxes on pass-through businesses and family‑owned firms; increased costs for R&D, capital equipment purchases and business loans; and "an uncompetitive international tax regime that disincentivizes investment in the U.S."

 

Fox News

The Institute and Faculty of Actuaries (IFoA) has released a report warning that global economic growth could decline by 50% between 2070 and 2090 due to the severe impacts of climate change. Sandy Trust, the report's lead author, said: “There is no realistic plan in place to avoid this scenario.” The report, titled Planetary Solvency – finding our balance with nature, criticises current economic theories that overlook the risks posed by nature degradation. It highlights that without urgent action to decarbonise and restore ecosystems, the world faces catastrophic consequences, including potential state failures and mass migration.

 

The Guardian

High-quality audits are vital for investor protection and capital access, but new rules proposed by the PCAOB could jeopardize small and midsized audit firms, writes Susan S. Coffey, chief executive of public accounting at AICPA & CIMA. The Institute emphasizes the need for "tough, transparent and focused regulation" but has expressed concerns over the PCAOB's metrics, which require extensive reporting that may lead to misinterpretation and increased costs. The PCAOB's approach could result in a significant contraction of the audit marketplace, with potential challenges for companies seeking replacements for exiting firms. The PCAOB has not demonstrated the demand for such metrics, and the proposed rules could impose undue penalties for minor reporting errors. The AICPA argues that the benefits of these regulations do not outweigh the potential consequences, urging the SEC to reconsider or revise the rules.

 

Accounting Today

The Biden administration has issued proposed rules to limit duty-free imports under the $800 "de minimis" threshold, denying exemptions for low-value shipments of goods subject to other punitive U.S. tariffs. This is a setback for e-commerce firms like Shein and Temu, which exploit the de minimis threshold to ship millions of small packages daily to U.S. customers. The rules also require small package shippers to include 10-digit Harmonized Tariff Schedule classifications for exemption claims. The goal of the move is to ensure equal opportunities for American businesses and to uphold U.S. laws. 

 

Reuters

Procter & Gamble faces a proposed class action lawsuit from eight consumers who allege the company misled Charmin buyers with false environmental claims. The lawsuit, filed in Seattle federal court, asserts that Procter & Gamble sources most of its wood pulp for Charmin from the Canadian boreal forest, employing harmful logging methods that contradict its environmental commitments, including the "Keep Forests as Forests" campaign. The complaint states: "The company must be held accountable for its egregious environmental destruction." The lawsuit seeks restitution and punitive damages for violations of consumer protection laws across 28 US states and Washington, D.C., and aims to prevent Procter & Gamble from making misleading environmental claims. In response to shareholder pressure, the company has pledged to enhance transparency regarding its wood-pulp suppliers by mid-2025.

 

Reuters

Small business confidence in the U.S. improved in December to its highest level in more than six years as the uncertainty over the economic outlook cleared following the presidential election in November, according to the National Federation of Independent Business (NFIB). The group's Small Business Optimism Index increased 3.4 points to 105.1 last month; seven of its 10 components improved, including a 16-point jump in the net shares of businesses expecting better business conditions. The Uncertainty Index fell 12 points to 86. “Optimism on Main Street continues to grow with the improved economic outlook following the election,” NFIB Chief Economist Bill Dunkelberg said in a statement. “Small business owners feel more certain and hopeful about the economic agenda of the new administration.”

 

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RTT News

The Food and Drug Administration has proposed a new rule under which food manufacturers would be required to identify key nutrition information on salt, added sugar and saturated fat in products. A new label described as a “nutrition info box” would be attached to packages, breaking down information about sodium, added sugar and saturated fat content by saying whether the food contains “Low,” “Med” or “High” levels of the nutrients. A few different design options were tested in a representative sample of U.S. adults to see which type of packaging allowed consumers to make “quicker and more accurate assessments” of products. “Participants provided more correct answers regarding the helpfulness of the product than the other schemes tested and also spent significantly less time evaluating the nutrient profile of the product,” said Dr. Robin McKinnon, acting director for the FDA’s Nutrition Center of Excellence. If the proposal is approved, food manufacturers who make $10m or more in annual food sales will have three years to add the labels to their packaging, while businesses with less than $10m in annual food sales will have four years to comply.

 

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