Good morning readers. In a clever move to keep its exclusive club truly exclusive, Costco is taking a firm stance against membership moochers. The retail titan is introducing scanners at select stores for a seamless verification process. The initiative aims to streamline entry and checkout processes while safeguarding the exclusive benefits and competitive pricing reserved for its paying members. It's a classic case of “membership has its privileges” – and Costco is making sure those privileges aren't up for grabs.

Let’s jump into today’s storylines.

In today’s digest:

• Elon wants a bigger piece of Tesla

• Headline Hustle: U.S. to put Houthi back on terrorist list, Canada sees inflation rise in December to 3.4%, judge blocks JetBlue’s acquisition of Spirit Airlines

• The return of free personal travel for executives

• Pulse Points: What’s Trending

TECH

Elon Musk eyes greater control over Tesla amidst AI and Robotics shift

In the world of electric vehicles, Elon Musk isn't just sitting in the driver's seat—he's looking to get a firmer grip on the steering wheel. The Tesla and SpaceX CEO is eyeing a bigger slice of the Tesla pie, aiming for about 25% voting control in the company he helped catapult to stardom. Currently owning around 13%, Musk believes this power boost is key for Tesla's crusade into AI and robotics, all while steering clear of total domination.

Musk’s rationale is clear

He believes this level of control is vital for Tesla's leadership in these fast growing fields. His request, as he puts it, isn't about seeking absolute power but ensuring significant influence in Tesla's future, especially as it navigates a landscape rapidly evolving beyond electric vehicles to more complex AI and robotics innovation.

The move could also shake things up for Tesla's board of directors, already grappling with various investor concerns and challenges. Top of mind are Musk's diverse business interests, legal entanglements, and a compensation package that's been a magnet for scrutiny.

Tesla's identity is shifting. Once primarily an electric car manufacturer, it's now steering towards being a front-runner in AI and robotics. This transition is crucial to Tesla's growth, mirroring Musk's belief in these domains as key to the company's long-term value.

But this request for increased control isn't without its pressures. The board must juggle executive compensation issues, Musk's divided attention between multiple ventures, and ongoing regulatory and legal battles. Notably, the Delaware trial over Musk's staggering $56 billion pay package looms large, its outcome poised to ripple through Tesla's governance and financial health.

Looking ahead…as Tesla navigates this road, the big question is how much control is too much, even for a visionary like Musk. His quest for greater influence, without outright control, is a nod to collaborative leadership. Yet, it's a move that's sure to keep the board, investors, and the tech world on their toes.

Headline Hustle

📜 U.S. to put Houthi rebel group back on terrorist list. In a decisive pivot, the Biden administration is set to reclassify the Houthi rebels as a global terrorist group, undoing its earlier removal of the designation. This action, a sharp U-turn from an initial attempt to foster peace talks and alleviate Yemen's economic crisis, follows recent U.S. strikes in Yemen in retaliation for the Houthis' Red Sea assaults on commercial ships. The classification prohibits U.S. interactions with the group and mandates the freezing of its assets in U.S. financial institutions.

🇨🇦 Canada sees inflation accelerate in December. Canada's inflation, seemingly tamed earlier, bounced back in December, signaling the central bank's ongoing battle with rising prices. The consumer-price index climbed 3.4% year-on-year, marking a resurgence from the steadier 3.1% in November. Core inflation, excluding volatile food and energy, also registered at 3.4%. This rebound, driven by factors like gasoline prices and rent hikes, underscores the Bank of Canada's cautious stance before considering rate cuts, especially with core inflation indicators suggesting a slower return to the 2% target. Despite a yearly CPI rise of 3.9% in 2023, a cool-down from 2022's 6.8% spike, Canadians face persistent high costs, notably in rent and transportation.

✈️ Judge blocks JetBlue’s $3.8 billion acquisition of Spirit Airlines. A federal judge has blocked JetBlue Airways' $3.8 billion acquisition of Spirit Airlines, a significant setback for what would have been the largest U.S. airline merger in over a decade. This decision upholds the U.S. Department of Justice's stance against the merger, asserting that it would reduce competition and lead to higher fares. The merger's denial reflects broader concerns over airline consolidation, with the judge emphasizing the importance of maintaining Spirit as a budget-friendly option for consumers. While JetBlue, known for its enhanced amenities, aimed to improve Spirit's service quality, the ruling highlights the distinct market roles both airlines play. The outcome leaves both carriers at a crossroads, particularly Spirit, which faces financial struggles and limited growth options.

BUSINESS

The sky-high cost of corporate perks

Remember the days when the biggest executive perk was a corner office? Well, those days are long gone. In the post-pandemic world, we're seeing a sky-high resurgence of a more extravagant perk for the C-suite crowd: free personal travel on company jets.

In 2022, companies in the S&P 500 splurged a whopping $65 million on this high-flying luxury for their executives—a 50% leap from pre-pandemic levels. It's not just a few high-flyers:

• About 14% more companies are now offering these airborne benefits compared to 2019, with a 25% rise in the number of executives getting their wings.

• While companies pitch this perk as a matter of safety and efficiency, skeptics see it as an over-the-top way to woo top brass.

But this isn't just about the optics. The resurgence in executive air travel perks, especially amid soaring fuel costs in 2022, has caught the eye of regulators and investors alike. Some companies have even faced legal settlements over it. The reason? Inaccurate reporting on such lavish perks can land companies in hot water, both legally and with their shareholders.

I mean…who wouldn’t enjoy a private jet? As the dust settles in the corporate world post-pandemic, the resurgence of jet-set perks for executives isn't just a return to luxury; it's a topic of debate. It spotlights the delicate balance companies must strike between rewarding their leaders and maintaining responsible corporate governance and transparency. In a world where every dollar and decision is scrutinized, companies might find that what flies high can also draw the spotlight—sometimes, not in the way they'd hope.

SNIPPETS

Pulse Points

• Uber is closing Drizly, the alcohol-delivery service it bought for $1.1 billion in 2021.

• Amazon is introducing an artificial intelligence tool in its mobile app that can provide quick answers to shoppers' product-related questions by summarizing information from product reviews and listings.

• Diageo and Sean “Diddy” Combs have agreed to end their legal dispute and dissolve their partnership on Cîroc vodka and DeLeón tequila.

• OpenAI is establishing a Collective Alignment team to gather and incorporate public input into its AI models to ensure alignment with human values.

• Restaurant Brands International is acquiring its largest U.S. Burger King franchisee, Carrols Restaurant Group, for $1 billion to accelerate the remodeling of older domestic Burger King restaurants, with $500 million being invested to renovate approximately 600 locations by 2028.

• Apple has modified its U.S. App Store rules, permitting app makers to include links and buttons in their apps for users to input credit card information on external websites, following the conclusion of the Epic Games antitrust challenge.

Was this email forwarded to you? Feel free to sign up using the following link: https://www.pulseofprogress.info/

⚡️ Want to feature in this newsletter?

Elevate your brand's visibility to over 4,500+ decision makers by partnering with Pulse of Progress and seize the chance to connect with our rapidly expanding, highly engaged audience! Reach out for more details.