The Washington Post - USA (2022-06-07)

A18 EZ RE THE WASHINGTON POST.TUESDAY, JUNE 7 , 2022

Economy & Business

JOBS

Nursing homes

a t risk of closures

Almost three-quarters of
nursing homes say they’re at
risk of closing due to staff
shortages, with more than half
operating at a loss, according to
a survey. If things don’t
improve, most fear that
resources won’t be enough to
keep them in business for more
than a year.
Expenses are 41 percent
higher than a year ago, and
more than half of those polled
said finding workers is even
more difficult this year,
according to a study from the
American Health Care
Association released Monday.
The staff shortfalls are forcing
nursing homes to turn away
potential residents at a time
when occupancy rates are

already far lower than before

the coronavirus pandemic.

The survey of 759 facilities

last month shows pressures

aren’t easing in the beleaguered

sector. AHCA, an industry

lobbying group, has said that

more than 400 facilities are at

risk of closing this year as

homes grapple with lower

enrollment and higher labor

and supply costs. The industry

has attracted more scrutiny

after the coronavirus swept

through facilities, killing more

than 150,000 residents.

Bloomberg News

WALL STREET

Male execs control

99% of share values

Women account for about a

quarter of the top executives at

S&P 500 companies and they

only control about 1 percent of

the value of shares held among

their fellow corporate leaders,

new research shows.

The disparity means male

executives held about

$770 billion worth of shares

in S&P 500 companies in 2020,

compared with about $9 billion

for female executives, said

Andreas Hoepner, a professor of

operational risk, banking and

finance at the Smurfit Graduate

School of Business at the

University of Dublin.

He said the study, conducted

with Swedish gender data

company ExecuShe, found the

ratio was skewed even after

removing company founders

and outliers like Tesla chief

executive Elon Musk.

As more women get promoted

to c-suite jobs, a larger share of

their overall compensation

comes from equity or stock

options, and the disparity

with male peers grows. In 2020,

women in the top ranks of S&P

500 leadership earned only

75 percent of the compensation

of male executives, the widest

gap in nine years, mostly

because of the imbalance in

stock ownership, according to

analysts at Morningstar. The

differences only increase

for women of color. Another

reason why women earn less is

they tend to have executive roles

in departments such as human

resources and marketing, where

equity ownership levels tend to

be lower than for positions such

as chief technology officer,

Hoepner said. There also are far

fewer women CEOs, he said.

Bloomberg News

CORPORATIONS

Icahn ends fight

over pregnant pigs

Carl Icahn ended a proxy

fight focused on the treatment

of pregnant pigs at grocery-

chain Kroger after losing a

similar battle with McDonald’s

last month.

The activist investor told

shareholders of both companies

Monday that he was conceding

the fight at Kroger, saying that

he expects the same outcome

there as at McDonald’s due to

the grocer’s financial position.

The dispute revolves around

the practice of keeping sows in

individual pens so small that

they can’t lie down or turn

around. Icahn had sought to

nominate board members to

McDonald’s and Kroger as a way

to force their pork suppliers to

end the practice. His

McDonald’s nominees lost in a

shareholder vote last month.

A Kroger spokesperson said

in a statement that the grocer

“will continue to engage with

stakeholders and shareholders

to inform our policies and

ensure we are well-positioned to

achieve our goals.”

Bloomberg News

ALSO IN BUSINESS

Citigroup plans to hire more

than 4,000 tech staff to help

move its institutional clients

online in the wake of the

pandemic. More than 1,000 of

the recruits will join the

markets technology team as

part of an aggressive growth

strategy, Jonathan Lofthouse,

head of markets and enterprise

risk technology, said in an

interview. “We’re trying to

digitalize as much of our client

experience as possible, front and

back, and modernize our

technology,” he said. “Those

firms that can digitalize fastest

are going to create competitive

advantage.”

F rom news services

DIGEST

BY CHRIS VELAZCO,

GEOFFREY A. FOWLER,

TATUM HUNTER

AND HEATHER KELLY

A pair of new MacBooks, the
ability to unsend messages, a busi-
er lock screen and the option to
buy now and pay later are just
some of the announcements Ap-
ple made at its annual developers
event on Monday.
There was no major new vision
for the future in the mix of helpful
and overdue features the compa-
ny shared. Apple mainly uses its
Worldwide Developers Confer-
ence keynote address to highlight
new developments to the software
that runs its iPhones, iPads, com-
puters and smartwatches. But
there were rumors leading up to
the announcement that Apple
might do something surprising,
even revolutionary, this year by
unveiling mixed-reality glasses.
Instead, the event first focused
on updates to its iOS 16 software,
which runs on iPhones and likely
would not be available to the pub-
lic until fall. The biggest news was
two updated MacBooks with new
chips, Mac and Apple Watch soft-
ware changes, and not a hint
about virtual reality ambitions.
The event was a prerecorded
video that was simultaneously
shown online and on a giant
screen to developers and press
who had been summoned to Apple
headquarters in California. Across
products, the software updates all
include a number of nice little
upgrades and a few awaited fea-
tures, but some of the most antici-
pated releases never materialized.
Here is a look at what did.

MacBooks with a new chip

Apple unveiled two new Mac
computers featuring a brand new
chip. The first devices to get it will
be the most popular Apple lap-
tops, starting with the MacBook
Air and 13-inch MacBook Pro. In-
side is the new M2 chip which
Apple claims will be 18 percent
faster than the previous M1 chip.

The new MacBook Air now has

a more consistently flat profile

that weighs 2.7 pounds and mea-

sures half an inch thick. The

screen now stretches more closely

to the edge of the body and mea-

sures 13.6 inches. The battery,

meanwhile, lasts up to 18 hours on

video playback.

Apple also fixed two of the big-

gest complaints about previous

MacBook Airs: The camera resolu-

tion doubles to 1080p and the

charger uses MagSafe technology

so the charger can pop in and out

easily. Apple says it starts at $1,

and ships next month.

The popular 13-inch MacBook

Pro will also get the M2 chip, plus a

few extra benefits. Its built-in bat-

tery is said to last two hours longer

than the one found in the new

MacBook Air. This model will not

be as svelte as the Air but that extra

juice could make the $1,299 price

tag worth the splurge for some.

Macs get camera swapping

The upcoming MacOS Ventura

software includes a feature called

Stage Manager, which lets you

quickly arrange all your open win-

dows to the side of the screen. That

is, except for the one you are work-

ing with, which goes front and

center without any distractions.

But another new feature called

“continuity camera” might be

even more useful, at least for peo-

ple who spend too much time on

video calls. In time, you will be

able to start a FaceTime call on an

iPhone and hand it off to a Mac by

bringing them close to each other.

It also lets you use an iPhone as

the camera for a FaceTime call on a

Mac, taking advantage of the cam-

era capabilities in the iPhone, in-

cluding studio portrait lighting

and an ultrawide view that can

reveal what is on the desk in front

of you.

Useful software updates

The most visible change com-

ing to the iPhone software is what

Apple executive Craig Federighi

called the “biggest update ever to

the lock screen.” Instead of just

showing a photo and the time, the

new iOS 16 software will let you

add widgets from apps including

calendar, weather and sports. No-

tifications from apps will also now

roll in from the bottom of the

screen, so they will not cover up

the photo and font you picked out

for your new custom lock screen.

Messages is also getting an

overhaul. Now, you can edit mes-

sages you already sent or unsend

certain messages entirely. It could

help us all say goodbye to those

embarrassing “sorry wrong per-

son” moments, and the news

prompted a chorus of “oohs” from

the audience at Apple.

When you use voice dictation,

the keyboard will now stay on the

screen so you flow back and forth

between voice and typing. You can

also now dictate emoji. The exam-

ple used was “mind-blown emoji.”

iOS 16 will also come with more

key and wallet options, which

might speed your switch from an

analog wallet to a digital one. Per-

haps unsurprisingly for a compa-

ny that has ventured into financial

services, Apple is getting in on the

“buy now and pay later” craze.

When iOS 16 arrives, a feature

called Apple Pay Later will let

shoppers pay for purchases across

interest-free installments. Con-

sidering the popularity of services

such as Affirm, Afterpay and Klar-

na, it is possible the approach

from Apple could pick up traction

fast. But it may face scrutiny from

regulators and critics who say it

can lead people into debt.

Safety feature on devices

After fielding criticism for the

ways its AirTags and “Find My”

location network could put vic-

tims of stalking or domestic abuse

in danger, Apple unveiled a new

“Safety Check” settings section.

Here, you can see what access you

have granted various apps and

devices, as well as revoke access

and reset privacy permissions

without having to tap around.

You can also sign out of iCloud

on any of your devices to limit who

has access to your messages or

other data. It is worth noting that

revoking access to location and

messages could in itself present a

safety risk if a person was being

held against their will.

CarPlay on multiple screens

Starting later this year, the Car-

Play feature will reach across the

multiple screens inside some vehi-

cles. And in certain cases, that

means Apple software could also

replace what you would normally

see on the instrument clusters in a

car. The screen will let you fiddle

with car features like climate con-

trol, as well as display helpful info

like speed and maps.

Sleep and heart monitoring

Apple has long pitched its

watch as a health tool, so it is no

surprise that some of the biggest

additions to its wearable software

try to help users understand their

bodies a little better. Wearers will

be able to take a closer look at the

their sleep quality, at least that is

the idea. Apple says its watch will

be able to determine how much

sleep people spend in different

stages, though researchers said

these kinds of insights often are

not much more than guesses.

Apple watch owners concerned

about cardiac health will be able to

see how much time their hearts

spend beating abnormally, known

as atrial fibrillation, or AFib. Ap-

ple watches have been able to de-

tect these offbeat heartbeats for

years, but models running this

new software should be better

able to track the AFib history of a

wearer, which is crucial informa-

tion for doctors trying to help.

Perhaps the most curious twist

to the Apple watch experience is

that you might not need to own

one to get a taste. Apple said it

would make its Fitness app avail-

able to all iPhone owners, and that

the software would be able to track

steps taken, flights of stairs

climbed and workouts tackled,

with no wearable required.

ASK HELP DESK

Apple unveils its upgraded MacBooks

Company announces software updates for various devices, offers no hints on virtual reality ambitions

JOHN MABANGLO/EPA-EFE/SHUTTERSTOCK

Apple chief executive Tim Cook speaks on a screen at the annual Worldwide Developers Conference where the company reveals updates.

○

DOW 32,915.

UP 16.08, 0.05% ○

NASDAQ 12,061.

UP 48.64, 0.4% ○

S&P 500 4,121.

UP 12.89, 0.3% ○

GOLD $1,843.

DOWN $6.50, 0.4% ○

CRUDE OIL $118.

DOWN $0.37, 0.3% ○

10-YEAR TREASURY YIELD 3.05%

UP 3.8%

CURRENCIES

$1= 131.90 Y EN, 0.94 EUROS

BY LORI ARATANI

JetBlue Airways on Monday

threw another $150 million into

its high-stakes bid to win control

of Spirit Airlines, seeking to

persuade shareholders to reject a

merger with rival Frontier Air-

lines.

In a regulatory filing, JetBlue

said it would pay Spirit $350 mil-

lion in the “unlikely” event that a

merger between the two carriers

failed to win regulatory approval

— a portion of which would

include a cash payment to share-

holders.

The revised proposal comes

after Frontier said last week that

it would offer a $250 million

payout if its proposed deal with

Spirit wasn’t approved by regula-

tors.

JetBlue’s sweetened proposal

comes as Spirit investors are

scheduled to vote Friday on

whether to merge with Frontier.

JetBlue is urging Spirit share-

holders to reject the deal while

pressuring the Spirit board to

negotiate with JetBlue.

The increase in the reverse

breakup fee is intended to offer

investors an insurance policy if

the JetBlue deal can’t pass regu-

latory scrutiny.

In rejecting JetBlue’s previous

overtures, Spirit’s board cited

concerns that a deal could face

hurdles with the Biden adminis-

tration’s Justice Department,

which has taken a more aggres-

sive look at consolidation in

several industries.

“This has all been quite dra-

matic,” Kerry Tan, an associate

professor of economics at Loyola

University, said of the weeks of

back-and-forth among the carri-

ers.

While both proposed deals

carry regulatory risk, industry

analysts have suggested a merger

between Spirit and Frontier

could have a better chance of

winning approval because the

Justice Department could see the

combination of two ultra-low-

cost carriers as a stronger chal-

lenge to the four domestic air-

lines that dominate the industry.

“JetBlue’s offer is financially

superior,” Tan said. “But if I were

to think about this from a [Jus-

tice Department] perspective, it

does make sense for Spirit and

Frontier to have more of a chance

getting DOJ approval, given their

business plan of attracting lei-

sure travelers.”

JetBlue has maintained that

its proposal is superior because it

offers Spirit shareholders cash

for their stock.

Frontier, by contrast, is offer-

ing shareholders a combination

of cash and stock if the airlines

merge.

Either combination would cre-

ate the nation’s fifth-largest air-

line.

Two proxy advisory firms have

split on which deal would be

more advantageous for Spirit

shareholders. Last week, Glass

Lewis recommended sharehold-

ers back the Frontier deal, while

Institutional Shareholder Ser-

vices (ISS) said a deal with

JetBlue may offer more upside

for Spirit investors. It said that

while JetBlue’s proposal may

face more “complex regulatory

head winds,” there is nothing to

suggest its bid has “zero chance

of receiving regulatory approv-

al.”

ISS had cited the absence of a

“breakup” fee in Frontier’s pro-

posal in its recommendation,

which prompted the carrier to

revise its proposal to include

such a provision. It is not clear

whether that change would alter

ISS’s analysis of the proposed

transaction.

“We remain fully committed to

acquiring Spirit,” JetBlue chief

executive Robin Hayes wrote in a

letter Monday to Spirit’s board.

“After listening to your stock-

holders and reaffirming with our

Board the significant benefits to

all stakeholders of combining

JetBlue and Spirit, we are

pleased to submit this Improved

Proposal, which we believe Spirit

stockholders will welcome.”

In a letter to his employees,

Spirit chief executive Ted Chris-

tie acknowledged receipt of the

revised proposal and said the

board would work with its finan-

cial and legal advisers to review

the offer.

“I know you likely have ques-

tions, but unfortunately, I don’t

have many answers to share with

you just yet,” Christie wrote. “I

will be back to you with more

information as soon as we have

it.”

In a filing with the Securities

and Exchange Commission,

Christie urged shareholders to

take no action until the revised

proposal is evaluated.

In May, the Association of

Flight Attendants-CWA, which

represents flight attendants at

Frontier and Spirit, announced it

supported a merger between the

two airlines. The Transport

Workers Union, which repre-

sents JetBlue flight attendants,

announced last month that it is

opposed to a Spirit merger.

John Samuelsen, TWU’s inter-

national president, said the

merger could eliminate jobs as

well as low-cost flight options for

consumers.

JetBlue on Monday sought to

dispel those concerns, saying

that it offers higher pay and

better benefits than Frontier or

Spirit and that a combined air-

line would “grow and add more

well-paying jobs.”

In February, Frontier and Spir-

it announced plans to merge in a

$6.6 billion deal they said would

create a more formidable rival to

American Airlines, Delta Air

Lines, United Airlines and

Southwest Airlines, a move they

said would also bring cheaper

fares and service to smaller cit-

ies.

In April, however, JetBlue an-

nounced an unsolicited cash bid

to buy Spirit.

Spirit’s board ultimately re-

jected that bid in May, conclud-

ing it was unlikely to win regula-

tory approval.

JetBlue returned later that

month with a revised offer aimed

at persuading Spirit sharehold-

ers to pressure the board to

consider a deal.

If approved, any merger would

be the first among the nation’s

airlines since Alaska Airlines

bought Virgin America in 2016.

Before that, American Airlines

and US Airways announced their

intent to combine operations in

2013, which created the world’s

largest air carrier.

JetBlue sweetens offer

for merger with Spirit

Ultra-low-cost airline’s

shareholders to vote this

week on Frontier’s bid