In today’s CEO Daily: Diane Brady on corporate boards’ vintage look. The big story: Trump’s Epstein reversal. The markets: U.S. futures are up; Bitcoin continues to tumble. Plus: All the news and watercooler chat from Fortune. Good morning. Corporate boards have a new look—but it harkens back to how boards looked years ago, according to a new report from the Conference Board released today and shared exclusively with Fortune prior to publication. Only 45% of companies in the Russell 3000 disclosed dir ...

Core Insights - Disney has omitted the term "diversity" from its 2025 annual report for the first time since 2019, reflecting a shift in its approach to diversity, equity, and inclusion (DEI) initiatives [1][2] - The company has introduced a "Global Belonging Week" event series, emphasizing "inclusion" and "belonging" over traditional DEI terminology, which has become politically charged [1][4] Summary by Sections Annual Report Changes - The latest 10-K form does not include "diversity," "inclusion," "DEI," or "D&I," although "equity" appears 130 times, solely in financial contexts [2] - Previous reports consistently highlighted DEI objectives aimed at reflecting audience life experiences and supporting diverse voices in creative teams [5][6][7][8] Human Capital and Employee Development - Disney mentioned "inclusive" in the "human capital" section, stating that HR programs aim to enhance workplace engagement and inclusivity [3] - The company plans to launch new leadership development opportunities in the 2025 fiscal year [3] Industry Trends - There is a broader trend among companies moving away from the term "diversity" in favor of "belonging" and "culture," as noted by workplace strategist Mita Mallick [4] - A report indicated that the use of "DEI" has decreased by 98% year-over-year among Fortune 100 companies as of May 2025 [5] Previous DEI Initiatives - Disney's past DEI initiatives included programs like the Executive Incubator and Heroes Work Here, aimed at supporting underrepresented groups and military veterans [6][9][10] - The company has established over 100 employee-led groups to represent diverse communities within its workforce [9][10]

Core Viewpoint - The Python Software Foundation (PSF) withdrew its grant proposal of $1.5 million from the National Science Foundation (NSF) due to conditions that conflicted with its core values of diversity, equity, and inclusion (DEI) [1][5][10]. Group 1: Grant Proposal and Objectives - PSF submitted a proposal aimed at enhancing the security of the Python ecosystem, particularly focusing on improving supply chain protection for the Python Package Index (PyPI) [3]. - The project intended to develop new automated tools for proactive review of software packages uploaded to PyPI, moving away from the current reactive mechanisms [3][4]. - The proposal was led by PSF's security developer Seth Larson and involved extensive preparation and a challenging application process, with a success rate of only 36% for first-time NSF applicants [4]. Group 2: Conditions and Risks - The NSF's conditions required PSF to refrain from operating or promoting any DEI initiatives during the grant period, which raised significant concerns for PSF [5][6]. - Violating these conditions could result in NSF reclaiming the funds, posing a substantial financial risk to PSF, which operates on an annual budget of approximately $5 million [6][7]. Group 3: Decision and Community Response - After internal discussions, PSF unanimously decided to withdraw the grant application, prioritizing its core values over the financial support [10]. - The decision was supported by members of the community, emphasizing the importance of maintaining the foundation's mission and values [12]. - The situation highlights the ongoing challenge for open-source organizations in balancing funding opportunities with their foundational principles [11][12].

Group 1: OpenAI Valuation - OpenAI has been valued at $500 billion, surpassing SpaceX to become the world's most valuable startup [2][4] - The company finalized a share sale allowing current and former employees to sell stock worth $6.6 billion, with $10.3 billion authorized for future sales [3] Group 2: Infrastructure and Climate Funding - The Trump administration has frozen or canceled approximately $26 billion in funding for various infrastructure and climate projects in the U.S. due to the federal government shutdown [5][8] - About $18 billion in infrastructure projects in New York City, including the Hudson Tunnel Project and the Second Avenue Subway, are on hold pending a review for compliance with constitutional principles [6][7] - The Department of Energy announced the termination of 321 financial awards supporting 223 projects, resulting in savings of approximately $7.56 billion for taxpayers, citing inadequate advancement of national energy needs and lack of economic viability [9] Group 3: Amazon's New Product Line - Amazon has launched a new budget-friendly private label called Amazon Grocery, consolidating its Amazon Fresh and Happy Belly brands [10] - The new line features over 1,000 grocery items, mostly priced under $5 and rated at least 4 stars by customers, including staples like milk, olive oil, and produce [10]

Core Insights - The field of diversity, equity, and inclusion (DEI) has experienced significant changes, with some employers stepping back from DEI goals due to stakeholder pressure and government scrutiny [1] - DEI roles have seen a decline, with approximately 6,000 roles in 2017 peaking at over 13,000 in July 2022, before dropping to just under 11,000 recently [2][3] Group 1: DEI Role Trends - The number of DEI professionals in corporate America has decreased, with many leaving DEI roles for different positions, while nearly 40% remained with their employers in non-DEI roles [3][4] - The expertise gained in DEI roles is being redirected to other areas within organizations, indicating that the work of fostering equitable and inclusive environments continues despite the decline in DEI-specific positions [4] Group 2: Transition of DEI Professionals - Most former DEI professionals transitioned to roles within human resources, while some shifted to other fields such as public affairs and marketing [5][6] - Employers with DEI teams reported higher employee satisfaction and improved workplace culture ratings, suggesting the importance of embedding DEI knowledge within organizations for growth and adaptability [6] Group 3: Strategic Importance of DEI - The report emphasizes that the critical question is not whether companies can afford to prioritize DEI, but whether they can afford not to [7]

Core Viewpoint - The CFA Institute is shifting away from its previous Diversity, Equity, and Inclusion (DEI) initiatives, renaming its code to "Inclusion Code" and removing references to race and gender, reflecting a response to legal challenges and member feedback [1][2][4]. Group 1: Changes in DEI Code - The new "Inclusion Code" eliminates the requirement for financial professionals to consider intersectionality in their practices [2]. - The terms "race" and "gender" have been removed from the code, which now emphasizes creating a workplace where employees feel valued and respected, regardless of their backgrounds [3]. - The institute's decision is influenced by recent court rulings regarding DEI practices, indicating a shift in the legal landscape [4][10]. Group 2: Background and Context - The CFA Institute previously adopted a controversial DEI code in 2023, which faced backlash from its members [5][8]. - The organization has a membership of 200,000 professionals managing trillions of dollars, highlighting its significant influence in the financial sector [5]. - The shift in policy comes amid broader corporate trends where DEI initiatives are becoming less popular and facing legal scrutiny [9]. Group 3: Internal Governance Issues - There is internal dissent regarding CEO Margaret Franklin's leadership, with calls for her removal due to perceived governance lapses and the handling of the DEI program [11][14]. - A former chief marketing officer of the institute has been charged with embezzling approximately $5 million, raising concerns about financial oversight within the organization [12]. - Members express a lack of confidence in the board's selection process and governance transparency, although the institute's spokesperson defends the board's election process [14].

Core Viewpoint - The announcement of Robby Starbuck as a panelist at the SHRM Blueprint conference has sparked significant backlash from HR professionals and stakeholders, who argue that his presence undermines the principles of diversity, equity, and inclusion (DEI) that the conference aims to promote [2][3][4]. Industry Reactions - Many HR professionals expressed their discontent on LinkedIn regarding SHRM's decision to include Starbuck, highlighting that his views contradict the conference's focus on inclusion and meaningful outcomes in diversity [3][4]. - Critics argue that Starbuck's past statements, which label DEI initiatives as "poison," are antithetical to evidence-based HR practices and could legitimize harmful perspectives [7][11]. SHRM's Position - SHRM's president emphasized the organization's commitment to fostering diverse viewpoints, including those of both Starbuck and left-leaning commentator Van Jones, in an effort to reflect a broad spectrum of perspectives [2][13]. - The organization aims to create a balanced forum for discussion, although many stakeholders believe that the inclusion of Starbuck detracts from this goal and may not facilitate constructive dialogue [13][14]. Concerns About Qualifications - Questions have been raised regarding Starbuck's qualifications and experience in publicly traded corporations, with some industry veterans suggesting that his background does not align with the expertise needed to discuss DEI effectively [9][10]. - Critics argue that SHRM could have selected more qualified individuals to address the financial implications of DEI, such as CEOs or experts with a proven track record in the field [10][11]. Broader Implications - The decision to include Starbuck is seen as part of a larger trend of rollbacks in DEI efforts across Fortune 500 companies, raising concerns about the future of inclusion initiatives in the corporate landscape [4][12]. - Stakeholders fear that platforming individuals with extremist views could undermine the progress made in DEI and create a divisive atmosphere within the industry [6][14].

Core Points - Google has removed over 50 diversity, equity, and inclusion (DEI) organizations from its funding list, totaling 214 groups removed and 101 added according to a report from The Tech Transparency Project [2][3] - The largest category of purged groups were DEI-related, with 58 groups removed that had mission statements including terms like "diversity," "equity," and "inclusion" [3] - The funding purge reflects a shift in Google's strategy, prioritizing investments in artificial intelligence technology amid changing political and legal landscapes regarding DEI policies [6][7] Company Actions - Google spokesperson stated that the funding list reflects contributions made in 2024 and does not encompass all contributions from other teams within the company [4] - Notable organizations removed from the funding list include the African American Community Service Agency and the Latino Leadership Alliance, which focus on empowering historically excluded communities [5][10] - Despite the removal of DEI-related organizations, Google continues to allocate funds to various groups, including $75,000 to the National Network to End Domestic Violence in 2024 [11] Industry Context - The backlash against DEI programs has intensified following the U.S. Supreme Court's 2023 decision to end affirmative action at colleges, leading to a reevaluation of DEI initiatives across various industries [7][8] - Many companies are still pursuing DEI efforts but are using alternative terminology to avoid the divisive nature of the term "DEI" [9] - Google CEO Sundar Pichai emphasized the importance of diversity in the workforce, stating that a diverse workforce is essential for serving a global user base effectively [9]

Group 1 - The Federal Communications Commission (FCC) approved an $8 billion merger between Paramount and Skydance Media, which will lead to significant changes in hiring and operational strategies at Paramount [1][2] - Skydance will gain control of CBS broadcast television, Paramount Pictures, and Nickelodeon as part of the merger, which is expected to close in the coming weeks [2] - FCC Chair Brendan Carr expressed support for Skydance's commitment to changes at CBS, emphasizing the need for diverse viewpoints in news and entertainment programming while announcing an injection of $1.5 billion into Paramount operations [3]

Core Viewpoint - Verizon is facing threats of legal action and a potential smear campaign from Byron Allen, a media mogul, after the company reduced its advertising budget with his media group, Allen Media Group (AMG) [1][5][10]. Group 1: Legal Threats and Advertising Budget - Byron Allen has threatened to sue Verizon for alleged racial discrimination after the company backed out of a $15 million annual advertising deal with AMG [1][10]. - Verizon claims that the threats from Allen and AMG are baseless and represent an attempted shakedown [4][5]. - The company plans to reduce its advertising spending with AMG by 30% in 2025 and 2026, bringing the budget down to $5 million from $15 million [10][11]. Group 2: Historical Context and Partnerships - Verizon and AMG previously collaborated on a diversity, equity, and inclusion initiative aimed at increasing media spending in Black-owned media companies [12][13]. - Allen has a history of suing major media companies for racial discrimination, having recently settled a $10 billion lawsuit against McDonald's [16][18]. - The political climate has shifted, impacting DEI programs, as seen in Verizon's agreement to end its DEI initiatives during its merger with Frontier Communications [15].