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Yahoo
6 hours ago
- Business
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What CFOs should take away from the Ames v. Ohio decision
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. In a landmark decision on June 5, the U.S. Supreme Court in Ames v. Ohio Department of Youth Services struck down the Sixth Circuit's 'background circumstances' rule, leveling the playing field for Title VII discrimination claims by now allowing all employees — regardless of their majority or minority status — to face the same evidentiary standard. For CFOs, this ruling signals heightened litigation risks and a need to consult with human resource leaders about hiring practices and potentially politically driven narratives being woven into corporate goals and messaging. In this collaboration, it's not just about a need for robust compliance strategies, but also an opportunity to assess the politicization of leadership and the organization's workforce. As companies face potential increases in lawsuits from majority-group employees who may have fallen victim to race, gender or sexual orientation based-discrimination in the name of a corporate DEI policy, financial leaders may have to reassess budgets for legal reserves, audit the contents of DEI programs in risk mitigation efforts and conduct workforce and pay equity audits to safeguard against costly claims and reputational damage. The case goes as follows: Marlean Ames was hired in 2004 by the Ohio Department of Youth Services as an executive secretary and was later promoted to a program administrator. In 2019, she applied for a management position but was denied in favor of a lesbian woman. Shortly after, she was demoted to her original secretarial role with a pay cut, and a gay man was hired as program administrator. In response, Ames filed a lawsuit under Title VII, alleging discrimination based on her sexual orientation. The issue at hand with Ames, who is a heterosexual white woman, was whether Title VII plaintiffs who are members of majority groups (e.g., heterosexuals and white people) must meet a heightened evidentiary standard, specifically the Sixth Circuit's 'background circumstances' rule, to establish a prima facie case of discrimination under the McDonnell Douglas legal framework. After multiple appeals to decisions requiring Ames to show a higher level of evidentiary standard, the U.S. Supreme Court sided with Ames and has now unanimously agreed to repeal this extra burden of proof from what previously was determined as a 'majority' status. Legal experts now say this opens the door to new risk for CFOs. 'In the Ames case, the Supreme Court unanimously held that the legal standard for an employee to bring a discrimination lawsuit against their employer is the same, whether or not the employee is a member of a majority group or in the minority,' said Julie Levinson Werner, partner and vice chair of employment at Lowenstein Sandler. 'Previously, many courts around the country held that majority group plaintiffs, such as white men, had to also show 'background circumstances' that the employer was the unusual employer that discriminated against the majority,' Werner continued. 'Now, based upon the Court's decision, there is no longer the concept of a 'reverse discrimination' case, and any employee can sue their employer if they believe they have been subject to discrimination based upon their race, gender, ethnicity, etc.' Jasmine Ahmed, who has held multiple roles in global financial leadership and now provides fractional CFO services, said that, regardless of guidance, finance teams who are unintentionally diverse, in her experience, have always performed better. However, she says the politicization of the issue around DEI has drawn attention away from addressing challenges and into an attack on merit. Having a merit-based professional approach that comes with hard work and grit, she says, are core fundamentals of working and growing careers in corporate finance. 'If you ask any hiring manager, 'If you had complete autonomy, what would you want?' it doesn't matter if it's in finance or not — the answer is always the same,' Ahmed said. 'I've never met anyone who says, 'I want to hire someone underqualified.' What do we hear instead? 'I want the best person for the job' because when the best person does the job, life is easier.' Ahmed said this is a core component of finding talent in finance, and using merit as an indicator of talent shouldn't be a political issue. 'That basic idea isn't political,' she said, 'it's rooted in qualifications, skills, experience and mindset. Those are the components of merit.' Ahmed said finance leaders can take steps to proactively work against ideas of race or sexuality playing a role in growth at their organizations by making sure merit and skill sets are the groundwork for talent evaluation. 'If you look at my track record, go research who's been on my teams, you'll see a pattern,' Ahmed said. 'Not only were they high-performing, they were also diverse. But that wasn't by design. It came from a culture that promotes merit.' She said she rejected traditional hiring tactics she saw in her career as part of this strategy. 'What was different [with my teams] is I didn't allow nepotism,' she said. 'I made talent development a priority for everyone. It wasn't just about performance, it was about developing people and holding managers accountable for doing the same. When you do that, you naturally build a strong, diverse bench.' When asked if she's ever seen a DEI policy in her experience that wasn't about box checking or politics, Ahmed candidly explained that she has not. 'Unfortunately, no,' she said. 'Around the time of COVID and Black Lives Matter, DEI was the hot topic. What did we do? We started filling roles with either African Americans or white women, and at the time, I thought, hold on, DEI isn't about checking a box or meeting quotas.' She went on to explain how the narrative around DEI in the CFO community is now being tackled as a labor issue, a challenge that has been talked about for years. 'I go to conferences and hear the same thing: 'Talent is our big issue.' And I ask, 'What are you doing about it?' We've been talking about the problem for years, but we don't take action.' For those who are building careers around the industry of DEI policies and their incorporation into the workforce, the court's ruling creates a new challenge. However, for Sheryl Daija, CEO of BRIDGE, a DEI and action-oriented, member-driven 501c6 trade group for the global marketing industry, the ruling is a portrayal of 'civil rights protections as preferential treatment.' 'By eliminating the 'background circumstances' standard, the Court has made it easier for majority-group plaintiffs to bring discrimination claims without addressing the ongoing structural barriers that underrepresented communities continue to face,' said Daija. 'The concurrence by Justices [Clarence] Thomas and [Neil] Gorsuch reveals the deeper motive: a sustained campaign to discredit DEI.' Daija went on to connect the language used by the justices in the concurring opinion to a political narrative against DEI policies. 'Their language [that is] citing briefs that call DEI an 'obsession' that causes 'overt discrimination' against majority groups signals hostility toward the very initiatives designed to correct long-standing inequities,' she said. Ahmed said organizations will likely follow one of two paths. 'One will ignore these issues, avoid the politics and take no real action, and they'll be blindsided,' she said. 'Their risk profile will go up, their teams will underperform, their innovation will stall.' She said the second group will take a more strategic approach and be much better off. 'They'll focus on solving the root problem, building strong, inclusive and high-performing talent for the future. If you solve for that, many of the risks and challenges will work themselves out over time.' Though she said this is seldom done in organizations she's familiar with, decisions like this — legal catalysts that come with a potential risk to the organizational growth projections — are sometimes what's needed to kick things into gear in a new direction. 'Culture is the hardest thing to change,' she said. 'I always tell clients, transformation is simple if you get the mindset right. With the right culture, people behave well even when no one's watching. You don't need as many rules, and everything becomes easier, but culture is also the one thing most executives don't invest in seriously.' Recommended Reading How CFOs can navigate DEI, its pullback and any legal repercussions in 2025
Yahoo
7 hours ago
- Business
- Yahoo
U.S. economic policy slows down PE buyers
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. Private equity dealmaking was in fairly good shape early this year, riding the momentum of an improved 2024. In fact, global deal value was the highest since the second quarter of 2022. Expectations for the coming months were high. Then: 'The relatively upbeat start faded hours into the second quarter,' Bain & Co. said in its midyear PE report. After the Trump administration's economic policy announcements on April 2, the value of deals announced that month was 24% below the monthly average for the first quarter, while deal count was down 22%. That data suggests a continued slump is likely in store for the PE market while investors digest the implications of the policy shifts, according to Bain. Global private capital raises fell to $237 billion in the second quarter, from $339 billion in last year's second quarter and $290 billion in the first quarter of 2025. The report noted that none of the PE buyout funds that closed in the first quarter were bigger than $5 billion — the first time in a decade that the quarterly threshold hasn't been surpassed. The 18,000-plus private capital funds active today are collectively seeking $3.3 trillion, which means there is about $3 of demand for every $1 of supply. While the 'entry' market was down, the 'exit' side dimmed as well. 'The already subdued market for initial public offerings essentially shut early in the second quarter, with offerings postponed or canceled amid the tariff turmoil,' Bain wrote. After five years of shocks to investors that included the COVID-19 pandemic, the war in Ukraine, inflation and a spike in interest rates, 'tariff volatility hit just when [investors'] confidence in making predictions was starting to return,' the report noted. And now companies are also pressed by the increasing need to scale the rollout of generative AI. Although strategic buyers often remain active amid economic turbulence, there's 'little prospect of the world returning to its pre-April 2 certainties, even if recent tariffs remain fully or partially rolled back,' Bain predicted. The second-quarter slowdown may heighten difficulties stemming from a lack of liquidity in the market. Recent fundraising efforts 'are consistently lagging historical benchmarks when it comes to returning capital to limited partners,' Bain observed. Unhappy limited partners are weary of partial exits and beginning to push for full, traditional ones, 'despite the headwinds faced by such transactions,' the report said. In a recent poll of Institutional Limited Partner Association webinar participants, 63% of them said they would prefer conventional exits over alternatives such as dividend recapitalizations, 'even accepting a valuation below recent marks if necessary.'
Yahoo
a day ago
- Business
- Yahoo
Does Baker Tilly's merger signal a public accounting mid-market power shift? Trial Balance
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. The Trial Balance is weekly preview of stories, stats and events to help you prepare. Baker Tilly and Moss Adams closed their merger in June, forming the sixth-largest accounting and advisory firm and the largest backed by private equity in the U.S. The company will operate under the Baker Tilly brand. In a recent interview with Business Insider, former CEOs Jeff Ferro and Eric Miles detailed the merger, their long-term growth plans and how PE backing is helping them scale to meet evolving client demands. Miles, the former CEO of Moss Adams, who will succeed Ferro as CEO of Baker Tilly at year-end, said the firms are responding to a clear shift in client expectations. 'The needs of the mid-market are evolving,' he told BI. 'Firms have to be bigger and more capable to stay competitive.' Ferro said he hopes the firm doubles revenue to $6 billion in five years, crediting the possibility of that scale to new technology and their private capital. The move places the company just outside the coveted Big Four ranking, as the combined firm brought in over $3 billion in annual revenue last year and includes 11,500 employees. While Baker Tilly has traditionally served clients across the East and Midwest, Moss Adams brings a dominant West Coast clientele market. For CFOs, the geographic blend and expanded advisory offerings may create a stronger alternative to historically pricey Big Four services, especially for mid-market finance leaders seeking cost-effective services. The deal also reflects a broader trend: While not directly tied to individual transactions, the tax advantages PE firms receive through mechanisms like the carried interest loophole could help fuel their ability to back large-scale mergers, especially in cash-generating service sectors like accounting. Baker Tilly's 2024 stake sale to Hellman & Friedman and Valeas Capital gave the firm the capital to boost its M&A strategy and invest heavily in AI, automation and the growing trend of fixed-cost service offerings. For finance chiefs, the merger could signal a shift in public accounting dynamics. PE backing often means faster innovation and improved service packages, but it also raises questions around pricing models, partner accountability and the long-term stability of the firm itself. Traditional partner-run firms, a model that is facing challenges of its own, typically offer continuity and institutional knowledge and longevity, while PE-backed firms may be more focused on growth metrics and scalability. Here's a list of important market events slated for the week ahead. Monday, June 9 Wholesale inventories, April Tuesday, June 10 NFIB optimism index, May Wednesday, June 11 Consumer price index, May Core CPI, May Monthly U.S. federal budget, May Thursday, June 12 Initial jobless claims, week of June 7 Producer price index, May Core PPI, May Friday, June 13 Consumer sentiment (preliminary), June This week, will publish a Q&A with Irina Berkon, CFO of Metallicus, a technology company that builds compliant and regulation-abiding cryptocurrency banking tools for traditional financial institutions. After speaking at Consensus 2025, Berkon shares her experience speaking as a CFO at a large conference, how she believes cryptocurrency and blockchain technology are not taking a backseat to AI, her relationship with CEO and cryptocurrency 'pioneer' Marshall Hayner, keeping cryptocurrency on the balance sheet and more.
Yahoo
2 days ago
- Business
- Yahoo
Warner Bros. Discovery CFO to head cable division in planned split
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. Warner Bros. Discovery's newly unveiled plan to split itself into two is expected to bring about a big promotion for the company's CFO. The New York City-based media giant on Monday said it intends to split itself into two publicly traded companies — one overseeing the company's streaming offerings and the other leading its cable networks, including CNN and TNT. Gunnar Wiedenfels, who has served as CFO since Warner's merger with Discovery in April 2022, is set to become president and CEO of the cable division. Wiedenfels, who previously served as an executive at a German media company, first started working as finance chief for Discovery in 2017. In a news release, Wiedenfels said the division will enable the spinoffs to 'leverage their strength and specific financial profiles' and 'pursue important investment opportunities.' As head of the cable division, Wiedenfels said he intends to find 'innovative ways to work with distribution partners to create value for both linear and streaming viewers globally while maximizing our network assets and driving free cash flow.' The tax-free split is expected to be completed in mid-2026, according to the release. David Zaslav, president and CEO of Warner Bros. Discovery, will lead the streaming division. The company hasn't yet disclosed who will make up the rest of the executive team of the new spinoffs. The cable division, referred to as 'Global Networks' in company documents, is expected to take most of Warner Bros. Discovery's reported $37 billion debt with it. In a media call cited by The Hollywood Reporter, Wiedenfels said it's 'safe to assume that the majority' of the company's current debt load will go to the cable division, although a 'not-insignificant' portion would remain with the streaming side. Ahead of the proposed split, Warner Bros. Discovery also said it plans to take out $17.5 billion in short-term financing provided by J.P. Morgan. 'Each company will have well-capitalized structures to support their businesses,' Warner Bros. Discovery officials said in the release. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Many Americans unlikely to quit over RTO mandates
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. Return-to-office mandates may no longer be a dealbreaker for American workers. That's the upshot of recent research by Dutch recruiting and talent firm Randstad. In a survey of 750 U.S. workers, 63% said they're unlikely to quit their jobs if their employers ask them to report to the workplace three or more days a week. More important than the option to work remotely, according to the study, is the concept of 'employability,' which Randstad defined as 'the ability to stay skilled, relevant and secure in a changing job landscape.' To wit: 70% of respondents said they'd prefer greater employability over the ability to work remotely. The research may mark a reversal in worker preferences amid shifting economic conditions over the last few months. The Pew Research Center in January, for instance, reported that 'many American workers say they'd rather find a new job than give up working from home.' 'While remote work was a priority for talent at the beginning of 2025, we're seeing a shift,' said Randstad North America CEO Marc-Etienne Julien in an email to 'As the economic outlook becomes more uncertain, the majority of American workers are now prioritizing employability over remote work. It's not that they no longer value remote work, it's that they're starting to weigh it against other factors that affect their future.' At the same time, respondents in Randstad's study were apparently willing to trade higher pay for less stress. 'The survey also indicated that workers are moving away from high-stress positions, with almost two-thirds (61%) of respondents preferring less stress over higher pay, and nearly half (41%) saying they have already taken pay cuts for lower-stress jobs,' the report stated. When it comes to retention, though, pay still matters: Randstad found a pay raise was the 'top retention driver' for 79% of respondents. It's worth noting, too, that retention factors appeared to differ among industries. 'When asked what would influence them to stay in their current role for five years, annual pay raises in line with or above inflation are more important to manufacturing workers (90%) than to any other industry, highlighting how financial stability is the foundation of long-term loyalty in this sector,' the survey said. 'In today's uncertain economic environment, it's no surprise that employability remains a top priority to workers,' Randstad's Julien said in a news release. 'But what really stands out… is the growing emphasis on flexibility, wellbeing and setting boundaries. These factors are becoming just as critical, if not more, for employers looking to attract and retain talent.' Though American workers may not give up their jobs over a return-to-office mandate, they're still asking for more flexibility in other ways. For instance, Randstad's survey of U.S. workers found 63% expect 'more flexibility with work hours' if they're asked to report to the office on a full-time basis. About 62% said they'd expect more paid time off and a higher salary if working in the office full time. Randstad surveyed American workers across 17 industries. Most of them were white-collar workers (41%), followed by grey-collar (34%) and blue-collar (25%). The findings derive from Randstad's wider Workmonitor Pulse survey, which was conducted between late March and mid-April. That annual survey queried 5,250 workers in Australia, Germany, Italy, Japan, Poland, the United Kingdom and the United States. Recommended Reading Return to office policies create real estate cost efficiencies Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
