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FEI Weekly

October 30, 2020

How to practice sapient leadership and the future of Social Security.

Q3's Record Economic Growth Doesn't Tell the Full Story

Fox Business

The U.S. economy grew at a record-shattering pace in Q3 as businesses reopened from the coronavirus shutdown. But the headline figure obscures the full picture: The economy contracted at an annual revised rate of 31.4% in the previous quarter, the sharpest decline in modern American history. Lifelines that propped up the economy in the early weeks of the pandemic — like the $670 billion Paycheck Protection Program— lapsed months ago. On top of that, millions of laid-off workers could lose their jobless benefits altogether by the end of the year, with the enhanced unemployment benefits that Congress approved in March set to expire on Dec. 31.

GE Reserves $100m for Potential SEC Accounting Enforcement

Forbes

If GE can solve all its problems — its shrinking top-line, its mediocre portfolio of businesses, and its accounting controversies — it could someday return to the nearly $61 a share it hit in September 2000 when the late, legendary Jack Welch was running the company. The company  is paying the price for dodgy accounting — setting aside a $100 million reserve.

Tiffany and LVMH Come to Agreement

Fox Business

Tiffany & Co. agreed to accept a lower price in its takeover by LVMH Moët Hennessy Louis Vuitton SE, ending a dispute between the luxury-goods companies that erupted after the coronavirus pandemic upended the industry. The agreement would allow the two sides to avoid what would have been a costly and time-consuming trial set to start in January.

The Payroll Tax and the Future of Social Security

NYT - Paywall

President Trump hasn’t released a proposal, but he has said he wants to eliminate the payroll tax — Social Security’s lifeblood — as an expansion of the temporary holiday enacted by executive action over the summer.Policy experts are highly skeptical that the payroll tax could be eliminated; it would require congressional action and be politically difficult. But if it happened, Social Security would have to compete for funding in a way it hasn’t before.

How to Practice Sapient Leadership

HBR

The four pillars of Sapient Leadership are 1. Leader humility, authenticity, and openness instills trust and psychological safety. 2. Trust and psychological safety empower individuals and teams. 3. Continuously learning teams enable effective navigation of 3-D change. 4. Shared purpose and values enhance focus, cohesion, and resilience during 3-D change.