2BMONEY
WEDNESDAY, JANUARY 11, 2017
Executives at 21st Century Fox,
the parent company of Fox News,
settled a sexual harassment
charge brought by an employee
against its prime-time star Bill
O’Reilly, according to a person
briefed on the matter.
The charge was brought by Ju-
liet Huddy, a Fox broadcaster
who joined the company in the
late 1990s, the person confirmed,
speaking anonymously due to the
confidential nature of the agree-
ment.
The settlement, first reported
by Lawnewz.com and confirmed
by The New York Times , was fi-
nalized several weeks after for-
mer Fox News CEO Roger Ailes
was ousted last July following a
sexual harassment lawsuit filed
by another Fox broadcaster,
Gretchen Carlson.
Huddy agreed to refrain from
suing the network and was paid a
sum in “the high six figures,” ac-
cording to Lawnewz and the
Times.
O’Reilly pursued a sexual rela-
tionship with Huddy in 2011, but
when she rebuffed his unwantedsexual advances, he tried to derail
her career, the Times reported,citing a letter Huddy’s lawyers
sent to Fox News. The Times said
a copy of the letter was anony-
mously mailed to its offices in De-
cember.
Jack Abernethy, a longtime Fox
executive who was named co-
president of Fox News after Ailes
left, was also accused by Huddy of
retaliating against her after she
rebuffed O’Reilly’s advances, the
report said.
Fox News couldn’t immediate-
ly be reached for comment. But
Irena Briganti, a spokeswoman
for Fox News, issued a statement
to the Times , saying “the letter
contains substantial falsehoods,
which both men have vehemently
denied.”
Jeanne Christensen, an attor-ney at law firm Wigdor LLP who
is representing Huddy, declined
to comment.
Huddy’s complaint buttresses
Carlson and several of her col-
leagues’ claims that top Fox News
executives tolerated its culture of
sexual harassment during Ailes’
reign. Ailes has denied Carlson’s
charges.
But in September, 21st Century
Fox paid Carlson $20 million to
settle her lawsuit and issued a
forceful apology, saying she “was
not treated with the respect and
dignity that she and all of our col-
leagues deserve.”
In 2004, O’Reilly settled a sex-
ual harassment lawsuit brought
by a former Fox producer, Andrea
Mackris.Fox settled sexual harassment claim vs. O’Reilly
Complaint says he
tried to derail career
of Juliet Huddy
Roger Yu
@ByRogerYu
USA TODAY
STAN GODLEWSKI, FOR USA TODAY
Fox News commentator Bill
O’Reilly has denied the claim.SAN FRANCISCO Ellen Pao,
whose lawsuit against her former
venture capital firm catapulted
her into the heated debate over
diversity in technology, is com-
bining forces with two of the
leaders in the push to bring more
women and minorities into the
industry.
Technology veterans Freada
Kapor Klein and her husband,
Mitch Kapor, have been at the
forefront of narrowing the racial
and gender gap in the tech indus-
try, taking sharp aim at venture
capital. They said Pao will be the
chief diversity and inclusion offi-
cer for Kapor Center for Social
Impact and a venture partner at
Kapor Capital.
“We are
thrilled to have
Ellen on our
team,” said
Klein, partner
at the Kapor
Center. “While
her long list of
talents and ac-
complishments
make her an ex-
cellent fit for
this role, it is
her values, her
courage and her
leadership skills
that will prove
enormously
valuable.”
For decades, Silicon Valley has
wrestled with its stark lack of ra-
cial and gender diversity. No-
where is that more evident than
in venture capital, which is dom-
inated by white men who, by and
large, fund very few start-ups
founded by underrepresented
minorities and women.
The clubby profession is under
growing pressure to make signifi-
cant changes in the wake of a
closely watched gender-discrimi-
nation lawsuit against Kleiner
Perkins, one of Silicon Valley’s
most famous firms. Pao lost her
case, but international news cov-
erage of the trial trained the spot-
light on the stark lack of diversity
in venture capital.
Women, African Americans
and Latinos are significantly un-
derrepresented in the profession,
with few holding decision-mak-
ing positions, according to a re-
port from the National Venture
Capital Association and Deloitte
University Leadership Center for
Inclusion.
Women make up 45% of the
venture capital workforce, mostly
in administrative roles, but just
11% of investment partners, or
the equivalent, on venture invest-
ment teams.
In an interview, Pao said her
primary role will be as a chief di-
versity and inclusion officer, over-
seeing the Kapor Center’s efforts
to bring greater diversity to the
tech industry. But she’s also look-
ing forward to reprising her role
as a venture investor on a part-
time basis.
As a senior member of the
team, she will help Kapor Capital
make seed-stage investments in a
diverse array of tech companies
that are focused on education,
health care, economic inclusion
and access to opportunity, she
said.Ellen Pao is
new chief of
diversity at
Kapor Center
Freada Kapor Klein
lauds Pao’s ‘courage’
and ‘leadership skills’Jessica Guynn
USA TODAYJUSTIN SULLIVAN,
GETTY IMAGES
Ellen Pao is
known for
her gender-
bias lawsuit
against Klein-
er Perkins.brought in to right a sinking ship.
She was Yahoo’s seventh CEO, a
list that included former Warner
Bros. executive Terry Semel,
“who couldn’t even be bothered
to move to Silicon Valley from
Los Angeles for the job,” says Paul
Saffo, longtime tech world ob-
server and forecaster.
“The company was in such
chaotic shape (when Mayer
joined) that you would have
needed someone with the tem-
perament and intuition of Steve
Jobs to even have a chance at a
turnaround. Her biggest mistake
might have been taking the job. It
was a suicide mission.”
But on the other hand, every-
thing from repeated hacking
scandals, ill-advised acquisitions
such as the $1.1 billion purchase
of social media site Tumblr and
high-salary but underutilized
hires such as Katie Couric and
former New York Times tech col-
umnist David Pogue all point to a
spotty chief executive tenure that
could stain Mayer’s résumé.
“Her flaw was that she should
have recognized a few years ago
that she was throwing good mon-
ey after bad, and if she’d done so
she would have likely got twice
what she’s getting now for Yahoo
assets,” Damodaran says. In fact,
Yahoo’s stock topped out at near-
ly $52 in fall 2014.
“But ultimately, people are hu-
man,” he says. “You offer some-
one millions to take a job, and of
course they’re going to say yes.”
While Mayer had been an early
employee and fast-rising star at
Google, “she had no experience as
a CEO, and being a tech company
CEO requires deep intuition
about where things are going.
Like when Jobs said everyone has
a phone with a stylus, but we’re
not going to do that,” Saffo says.
Yahoo was founded by Jerry
Yang and David Filo in 1994 as a
curated guide to the burgeoning
Wo r l d W i d e We b. Ya h o o ’s h o m e
page was among the first true on-
line sources for news. But Goo-
gle’s arrival signaled a sea change
for search companies, one that
placed a priority on the power of
algorithms over curation.
“Marissa was sticking with Ya-
hoo’s DNA and hiring big names,
but that was never going to help
in the battle with Google,” Saffo
says.
Making matters worse was an
internal culture that seemed to
create tension and the wrong
kind of competition between lay-
ers of vice presidents. In the past
few years, Yahoo was hit by a
number of lawsuits from male
employees who claimed they not
only were discriminated against,
but that all managers were forcedto stack-rank their employees for
the purpose of incessant firings.
Mayer and her team “were just
not very good at listening, and in
any turnaround you have to do an
awful lot of listening,” says Rita
Gunther McGrath, a professor at
Columbia Business School.
While Yahoo was a “basket
case” upon Mayer’s arrival,
McGrath notes that among the
CEO’s poor decisions was one “to
go around her own cybersecurity
team,” a move that ultimately led
to more than a billion users hav-
ing their information hacked.
Monday, a Securities and Ex-
change Commission filing re-
vealed Mayer, who will have
earned more than $300 million
as Yahoo CEO and should receive
$55 million if terminated, will
step down from Yahoo’s board of
directors with five others when
the Verizon sale goes through.
Mayer will not be on the new
Altbaba company’s board, and
there is only speculation as to
what the executive could do next.
“Was there a lot of hubris in
her time at Yahoo? Of course, butsometimes hubris can pay off,”
Damodaran says. “I could imag-
ine some small tech company
snapping her up as CEO.”
Saffo says he believes that
things might not be so simple.
Despite some efforts, Silicon Val-
ley suffers from a reputation as
being a predominantly white and
male enclave, with few minorities
and women in executive posi-
tions and in crucial investor roles.
“Marissa took on an impossible
mission, and you can’t criticize
someone for being a risk-taker,”
he says. “But Silicon Valley has a
bit of a double standard when it
comes to women. So, will she be
judged as a risk-taker who failed
or as a woman who failed?”
Mayer also could be about to
head off the “Glass Cliff,” a phe-
nomenon first identified by two
British professors who found that
companies are more likely to ap-
point women and minorities in
leadership roles when the firms
are not doing well.
“When things are dire, boards
somehow think that bringing in a
woman will be better for team
building, because they’ll listen
better and have better social in-
telligence,” McDermott says.
“Then they get fired because of
performance or because the busi-
ness model can’t be turned
around. And then the company
brings in a tough guy.”Mayer taking job a ‘suicide mission’
v CONTINUED FROM1B “Will she be judged
as a risk-taker who
failed or as a woman
who failed?”
Paul Saffo , longtime tech world observer
and forecasterfrom the crowd when it comes to
fashion.
For prices ranging from $5.
to $24.99, Art Class shoppers can
choose from items such as a
black-and-white hoodie with a
skeleton design, sporty leisure
pants and a watercolor-splashed
short set. They’re all pieces of an
initial, limited edition collection
dubbed The Class of 2017. The
Art Class brand will switch in
new items every four to eight
weeks.
“This generation of kids is fo-
cused on expressing themselves
through what they’re wearing
and how they mix and match dif-
ferent pieces to create a look
that’s all their own,’’ says Michelle
Wlazlo, Target’s senior vice presi-
dent of apparel and accessories.
“Their preferences are changing
more quickly than previous gen-
erations, which challenges us to
look for new ways to bring them
the latest trends on an acceler-
ated timeline.’’
Target worked with kids be-Farla Efros, president of HRC Re-
tail Advisory, a retail strategic
firm. “They’re bringing them into
the building and questioning
them, understanding what’s hot
and what’s not. ... This is the gen-
eration that’s going to develop the
next whatever.’’
Art Class will launch Jan. 22
with an initial collection of about
100 clothing items and accesso-
ries aimed at those between the
ages of 4 and 12.
Art Class follows in the foot-
steps of Cat & Jack, another Tar-
get children’s line that launched
in July and is projected to bring
in more than $1 billion its first
year.
While Cat & Jack is a broader
brand that caters to babies as well
as pre-teens, Art Class is its more
curated, and potentially cooler,
counterpart, keying in on the
tastes of a generation that is digi-
tally savvy, environmentally con-
scious and eager to stand out
tween the ages of 7 and 14 to help
shape the first Art Class collec-
tion, getting their input on details
ranging from fabrics to buttons.
The young design partners in-
clude a 12-year-old chef who
owns his own cookie business, an
8-year old surfing prodigy and an
11-year-old dance star whose
videos have gone viral.
Target is counting on the group
to spread the word about the newbrand to their collective 10 mil-
lion followers on social media.
Gen Z differs from Millennials
in key ways. Like that slightly old-
er group of consumers, Gen Z
taps into mobile apps to research
prices and other details.
But unlike many Millennials,
Gen Zers still enjoy going to the
mall so they can touch and try
out gadgets and try on clothing
before they buy. Then, after they
make their purchases, the teens
and tweens add their own twist.
“Personalization is critical,”
says Efros, who noted the popu-
larity of a Nordstrom in Toronto
where young shoppers can pur-
chase an item like a pair of jeans
and then get it altered in a way
that reflects their individual style.
Social media is especially im-
portant to a generation whose
members often received their
first table computers before they
could talk. Unlike Millennials,
Efros says, Gen Z is more likely to
mirror the tastes of friends or a
typical teen offering tutorials on
You Tube than take their fashion
direction from a supermodel.
“They define themselves by the
number of ‘likes’ they get,’’ Efros
says, “so before they make a pur-
chase, they will post a picture and
wait to see if they get approval.’’Personalization key
to Gen Z fashion
v CONTINUED FROM1B
TARGET
Target worked with kids to
help shape the first Art Class
line, which launches Jan. 22.Warren Buffett has been one of
the largest skeptics of Trump,
with the two men even getting
into a war of words over Buffett’s
tax-paying history. Even so, Buf-
fett is by far the biggest financial
winner since the election. The
value of his 18% stake in the di-
versified company has risen $6.
billion since the election, vastly
more than any of the other win-
ners.
Buffett’s exposure to the finan-
cial industry has fueled much of
the gains, since the sector has
been the biggest winner from
Trump’s victory. Investors are
hopeful higher interest rates and
lighter regulations could boost fi-
nancials’ profits.
Berkshire’s $37 billion market
value gain has been impressive,
but several banks have performed
even better. JPMorgan Chase has
been the largest single best-per-
forming bank stock since the
election, adding nearly $59 bil-
lion in market value. The biggest
individual winner from that in-
crease has been James Crown, a
member of the board of directorswho owns more than 9 million
shares. The value of that stake
has gained $158 million. Crown
owns even more shares than CEO
Jamie Dimon, who also profited
with his 6.7 million shares.
But Wells Fargo’s Stumpfmight be the luckiest banker. De-
spite a difficult year, resigning
from the bank amid public outcry
over an alleged scam of creating
fake accounts, Stumpf at least got
a happy November surprise. The
value of his stock in the company
has risen by $22 million.
It’s not just the money men
making bank. Laurene Jobs’ 128.
million shares of Walt Disney, re-
sulting from her husband’s sale of
the Pixar movie studio to Disney
in 2006, have gained $1.8 billion
in value since the election. And
there have been more big individ-
ual winners beyond those at com-
panies with the biggest increases
in market value. The value of Mi-
crosoft has risen $18.5 billion,
generating a $437 million gain for
co-founder Bill Gates.
Not sure if the stock market
gains make these people happier
about the election, but it certainly
makes them richer.Election aside, these 10 are richer
v CONTINUED FROM1B
Largest individual stock gains at companies posting the largest increases
in market value since the election:CompanyChange in
market
valueBiggest
ownerBiggest
owner’s
gains
JPMorgan Chase $59.0B James Crown $157.9M
Bank of America $57.3B Thomas Montag $13.3M
Wells Fargo $45.7B John Stumpf $22.1M
Apple $43.7B Arthur Levinson $9.4M
Berkshire Hathaway $37.1B Warren Buffett $6.7B
Citigroup $30.2B Michael Corbat $5.4M
Goldman Sachs $26.2B Lloyd Blankfein $141.9M
AT&T $25.6B Randall Stephenson $5.4M
Walt Disney $22.9B Laurene Jobs $1.8B
Verizon $21.4B Lowell McAdam $3.4M
SOURCE S&P GLOBAL MARKET INTELLIGENCE, USA TODAYBIG PERSONAL GAINS SINCE ELECTION