#11: Most Expensive Sallah in 30 Years for Nigerians

Hello Readers,

Welcome to the 11th edition of Jam's Reading List! This newsletter is all about curating some of the best content out there that matters in Business and Finance of the previous week. We know that sometimes you might be busy all week, so we've summarized the key points to make sure you get the gist without the fluff.

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1. Tesla Shareholders Approve $50 Billion Compensation Package

Tesla shareholders have approved a $50 billion compensation package for Elon Musk, following a contentious debate. Originally approved in 2018, the package includes performance-based stock options that could increase Musk’s stake in Tesla from 13% to 22%. This comes after a Delaware judge voided the package in January, citing conflicts of interest and a lack of fairness.

The approval is significant, given Tesla’s recent struggles, including a 30% drop in share value this year and three consecutive quarters of declining profits. Critics argue that Musk has been distracted by his other ventures, such as SpaceX and the AI company xAI, and that he has not been adequately focused on Tesla.

The package aims to ensure his continued commitment to the company, which is seen as essential for its long-term success. Despite the vote, legal scholars note that the shareholder approval does not overturn the court’s ruling, but it may influence future legal proceedings and Musk’s involvement with Tesla going forward.

2. OpenAI Welcomes Sarah Friar and Kevin Weil

OpenAI has appointed Sarah Friar as Chief Financial Officer (CFO) and Kevin Weil as Chief Product Officer (CPO). Sarah Friar, former CEO of Nextdoor (Proptech Company) and CFO at Square, will lead the finance team to support OpenAI’s growth and investment in research. Kevin Weil, formerly at Planet Labs and Facebook, will head the product team to apply OpenAI's research to practical products. These appointments aim to bolster OpenAI's mission of conducting leading AI research and deploying innovative AI products responsibly.

3. Most Expensive Sallah in 30 Years for Nigerians

Nigerians are facing the most expensive Sallah in 30 years due to skyrocketing prices of essential items like ram, tomatoes, and rice. Inflation has driven ram prices up by 150% to N300,000-N400,000 in Lagos, while a basket of tomatoes has surged to N120,000-N150,000. These increases, along with higher costs for other staples, are straining families' budgets and dampening festive celebrations. The economic challenges have gotten worse by subsidy removals and high feed costs for livestock.

Startup Corner

Founder Liquidity in Secondaries

The article discusses the concept of founder liquidity in Silicon Valley, where founders can sell a portion of their shares during funding rounds to secure financial stability while continuing to build their companies. This practice, often kept secret, contrasts with the myth of founders being "all-in" and taking on high risk. The article advocates for greater transparency and fairness, suggesting that early employees should also have access to liquidity to balance the risk and reward dynamics in startups.

Finance Corner

1. Nigeria's Inflation rises to 33.95%.

Nigeria's inflation rate rose to 33.95% in May 2024, up from 33.69% in April. This increase marks a significant rise compared to the 22.41% recorded in May 2023. The main contributors to this inflation include higher prices for food and non-alcoholic beverages, housing, water, and electricity. While the year-on-year inflation rate increased sharply, the month-on-month rate showed a slight decrease from April, indicating a slower pace of price increases for that month. Food inflation reached 40.66% year-on-year

2. Nigeria has secured 4.95 billion in Loans since 2023.

Nigeria has secured $4.95 billion in World Bank loans under President Bola Tinubu's administration. These funds are allocated for various projects, including power sector improvements ($750 million), women’s empowerment ($500 million), adolescent girls' education ($700 million), renewable energy ($750 million), economic stabilization reforms ($1.5 billion), and resource mobilization reforms ($750 million). The increase in external debt has raised concerns over the country's rising debt service costs, impacting socio-economic sectors such as healthcare, education, and infrastructure

Podcast:

1. All in Pod

In this podcast episode, the hosts start with an energetic introduction before recapping a recent Trump fundraiser. They discuss the approval of Elon Musk's compensation package by Tesla shareholders, and Apple’s announcement of "Apple Intelligence" and a partnership with ChatGPT at WWDC. They highlight OpenAI reaching a $3.4 billion revenue run rate and delve into a macro debate on the state of the US economy. The episode concludes with a segment on searching for rare sarcoma.

I hope you enjoyed this edition! If you did, let me know what you liked the most. Don't forget to like and share. Thanks for being amazing, and have a wonderful week ahead!