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Trust fails
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CEOs and boards need to get aligned.
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Happy Monday. Smucker is suing Trader Joe’s for infringing on its Uncrustables IP. Smucker wants the grocery chain to deliver all of its frozen PB&J products and packaging to the Ohio-based company for destruction. Sounds like Smucker has a real, ahem, appetite for destruction.

In this issue:

Board certified

Plan B (through Z)

Remember the flash crash

Courtney Vien, Alex Zank, Billy Hurley

STRATEGY

Rear view of mature businesswoman discussing strategies with colleagues in board room at office.

Maskot / Getty Images

If we had to venture a guess, we’d say your CEO is under a lot of pressure right now.

Right now, CEOs are grappling with a volatile business environment, rapid technological change, heightened visibility, increased expectations from investors and other stakeholders, and other factors that have made their roles demanding. CEO turnover is increasing: In 2024, a record 43 CEOs exited within their first three years, the most since 2018, according to a CEO turnover study from Russell Reynolds Associates.

Compounding the problem is the fact that CEOs and boards often fail to trust one another. Only 37% of CEOs say the board has their back, according to a Spencer Stuart survey from April 2025.

But trust is all the more crucial in turbulent times, the National Association of Corporate Directors (NACD) wrote in its latest Blue Ribbon Commission Report. Based on the input of 25 directors and six CEOs, the report outlines ways CEOs and boards can strengthen their relationships with one another. The results are pertinent to other members of the C-suite as well, commission cochair Dona Young, former chair, president, and CEO of the Phoenix Companies, said during a press session at the NACD Summit.

Keep reading for more on building a bridge of trust.CV

Presented By Pulley

STRATEGY

World bank slow growth decline

Mikroman6/Getty Images

So you’re saying sluggish growth may lie ahead? CFOs have a plan for that!

In its latest World Economic Outlook report, the International Monetary Fund predicted global growth will slow from 3.3% last year to 3.2% this year and 3.1% in 2026. While the IMF still expects growth to decrease, the outlook improved from April when the group said to expect growth of only 2.8% this year and 3% in 2026. New trade deals lessened the sting of US tariffs, the IMF noted in its report, yet “the overall environment remains volatile.”

“CFOs have already priced this growth slowdown to some extent” because of the earlier prediction, Randeep Rathindran, distinguished VP in Gartner’s finance practice, told us. With macroeconomic factors in mind, many are still expecting growth but also plan to control expenses.

Lying awake mulling “multiple economic scenarios”? Keep reading.AZ


FLASHBACK

Financial news of todays turbulent stock market is displayed on a news ticker in Times Square May 6, 2010 in New York City. The Dow Jones industrials plunged nearly 1,000 points before ending the day down at 347.

Daniel Barry/Getty Images

On May 6, 2010, at 2:32pm, stocks and stomachs dropped.

An unexpected sell-order of 75,000 contracts (worth $4.1 billion, according to an SEC report filed a few months later) led to a chain reaction of buys, sells, buybacks, sellbacks, and panicked exits.

In the span of about 10 minutes, in what became known as the “flash crash,” the Dow Jones Industrial Average (which today includes companies like Microsoft, Amazon, and Apple) fell by about 9%.

Normally that kind of drastic downfall would mean a tough day for then-floor governor of the New York Stock Exchange Jay Woods. But he’d had the day off.

Read the whole wild story on IT Brew.BH

Together With Terzo

MARKET FORCES

market forces chart

Francis Scialabba

Today’s top finance reads.

Stat: $100 million. That’s how much Salesforce says AI customer service is saving them per year. Earlier this year, the company’s CEO pointed to AI as a reason for laying off about 4,000 employees on its customer support team. (Bloomberg)

Quote: “What’s changed over the last 10 or 15 years: The premium products used to be loss leaders and now they’re the highest-margin products—that’s really the headline.”—Glen Hauenstein, president of Delta Air Lines (New York Times )

Read: Looks like years of near constant crisis have made global markets “too comfortable with risks,” according to an IMF report. (Reuters)

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