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Terror attacks headline threats to upcoming Paris Olympics
Washington — There are new warnings about potential attacks aimed at disrupting the upcoming Summer Olympic Games in Paris, including the potential for more terror plots like the one disrupted last week by French officials.
A report released Tuesday by the cybersecurity firm Recorded Future states that despite a high likelihood of cyberattacks, the greatest risk to the Paris Games will come from in-person threats instead of from cyberspace.
“We assess that physical security threats — including terrorism, violent extremism, civil unrest and disruptive protests — pose the greatest risk of harm and disruption,” the report from Recorded Future’s Insikt Group said.
“Terrorists and violent extremists — particularly IS [Islamic State] and al-Qaida supporters in France and neighboring European countries — will almost certainly continue to plot and incite violent attacks targeting the Paris Olympics,” the report added. “Though extensive security infrastructure in place for the event will make a successful mass-casualty attack very unlikely.”
The warning from Insikt Group comes as French authorities have already announced the disruption of at least two terror plots targeting the upcoming Games.
In late April, French anti-terrorism forces arrested a 16-year-old from the town of Marignier after he announced on social media that he planned to build an explosive belt and die as a suicide bomber at an Olympic venue.
And just last week, French security officials arrested an 18-year-old, charging him of planning an attack in the name of IS at the Geoffroy-Guichard Stadium in Saint-Etienne.
Additionally, Insikt Group warns that IS has been pumping out propaganda, “urging its supporters to recreate the November 2015 series of terrorist attacks in Paris that included a suicide bombing at the Stade de France — the main venue for the 2024 Paris Olympic Games.”
And while there is no convincing evidence yet of any large-scale plot against the upcoming Olympics, the terror group has been inciting supporters across Western Europe to carry out attacks by leveraging connections through the internet and social media.
U.S. officials further warn the IS group’s Afghan affiliate, known as IS-Khorasan or ISIS-K, has been building momentum from its deadly attacks on Kerman, Iran, in January and on a Moscow concert hall in March.
“We see the ISIS network sort of resettling after a period of disquiet,” National Counterterrorism Center Director Christine Abizaid warned during a security forum last month in Doha.
“This ability of the global ISIS enterprise, even without territorial solidity, the ability to reach out virtually to a network of supporters, some of whom are going to conduct attacks, is quite concerning,” she said, calling ISIS-K’s ability to reestablish itself in Afghanistan “probably the most significant additive capability we’ve seen to the global ISIS network in the last three years.”
There are also concerns that other extremists could be motivated by the ongoing war in Gaza between Israel and Hamas, a U.S. designated terror group that has controlled Gaza since 2006.
Tuesday’s report by Insikt Group calls potential attacks targeting Israelis or Americans due to the war in Gaza “very unlikely but within the realm of possibility.”
Groups connected to Iran, including the Lebanese Hezbollah terror group or supporters of various Palestinian terror organizations “would likely view the Paris Olympics as an attractive venue,” the report said, though it emphasized it had not identified any intelligence suggesting such groups are preparing to act.
Cyber threats
In addition to the potential for various groups to attempt to carry out physical attacks on the Paris Games, Insikt Group warns that hackers, sometimes working for criminal enterprises and other times working for other countries, are likely to target the Olympics.
Cyber threats to the Olympics include disruptive cyberattacks by various hacktivist groups as well as ransomware attacks, cyber espionage and influence operations.
“Russia, China and Iran are likely to leverage Olympic-themed phishing lures or infrastructure to carry out espionage activities during the Paris Olympics,” according to the report.
“Networks based in Russia, Iran and Azerbaijan are also likely to work overtly and covertly to amplify narratives critical of France, NATO and Israel,” the report said.
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Lawyers begin opening statements in Hunter Biden’s federal firearms case
Wilmington, Delaware — Lawyers are making opening statements Tuesday in the federal gun case against President Joe Biden’s son Hunter in a trial that is expected to feature testimony from his exes and highly personal details about his struggle with addiction.
Hunter Biden has been charged with three felonies stemming from a 2018 firearm purchase when he was, according to his memoir, in the throes of a crack addiction. He has been accused of lying to a federally licensed gun dealer, making a false claim on the application by saying he was not a drug user and illegally having the gun for 11 days.
Hunter Biden arrived at the courthouse with this wife, Melissa, on Tuesday morning, emerging from an SUV. First lady Jill Biden and his sister Ashley Biden joined him again in the courtroom.
The proceedings come after the collapse of a deal with prosecutors that would have avoided the spectacle of a trial so close to the 2024 election. Hunter Biden has pleaded not guilty and has argued he’s being unfairly targeted by the Justice Department after Republicans decried the now-defunct plea deal as special treatment for the Democratic president’s son.
The trial is unfolding just days after Donald Trump, the presumptive Republican presidential nominee, was convicted of 34 felonies in New York City. The two criminal cases are unrelated, but their proximity underscores how the courts have taken center stage during the 2024 campaign.
Jury selection moved at a clip Monday in the president’s home state, where Hunter Biden grew up and where, the elder Biden often says, the family is deeply established. Joe Biden spent 36 years as a senator in Delaware, commuting daily back and forth from Washington, D.C.
People just know the story of how Biden’s two young sons, Hunter and Beau, were injured in the car accident that killed his wife and baby girl in the early 1970s. And Beau Biden was the former state attorney general before he died at age 46 from cancer.
Some prospective jurors were dismissed because they knew the family personally, others because they held both positive and negative political views about the Bidens and couldn’t be impartial. Still, it took only a day to find the jury of six men and six women plus four women serving as alternates, who will decide the case.
One potential juror who was sent home said she didn’t know whether she could be impartial because of the opinion she had formed about Hunter Biden based on media reports.
“It’s not a good one,” she said.
Another was excused because he was aware of the case and said, “It seems like politics is playing a big role in who gets charged with what and when.”
But much of the questioning focused on drug use, addiction and gun ownership, as attorneys sought to test prospective jurors’ knowledge of the case, and dismiss those with strong thoughts on drug use, or who might want to regulate firearms — some of the very people Biden counts as constituents.
The panel of 12 was chosen out of roughly 65 people. Their names were not made public.
Hunter Biden also faces a trial in California in September on charges of failing to pay $1.4 million in taxes. Both cases were to have been resolved through the deal with prosecutors last July, the culmination of a yearslong investigation into his business dealings.
But Judge Maryellen Noreika, who was nominated to the bench by Trump, questioned some unusual aspects of the deal, which included a proposed guilty plea to misdemeanor offenses to resolve the tax crimes and a diversion agreement on the gun charge, which meant as long as he stayed out of trouble for two years the case would be dismissed.
The lawyers could not come to a resolution on her questions, and the deal fell apart. Attorney General Merrick Garland then appointed the top investigator, a former U.S. attorney for Delaware, David Weiss, as a special counsel in August, and a month later Hunter Biden was indicted.
Opening statements come as Garland faces members of the Republican-led House judiciary committee in Washington, which has been investigating the president and his family and whose chairman has been at the forefront of a stalled impeachment inquiry stemming from Hunter Biden’s business dealings.
The Delaware trial isn’t about Hunter Biden’s foreign business affairs, though the proceedings were likely to dredge up dark, embarrassing and painful memories.
The president’s allies are worried about the toll the trial may take on the elder Biden, who’s long been concerned about his only living son and his sobriety and who must now watch as his son’s painful past mistakes are publicly scrutinized. And the president must do so while he’s campaigning under anemic poll numbers and preparing for an upcoming presidential debate with Trump.
In a statement Monday, the president said he has “boundless love” for his son, “confidence in him and respect for his strength.”
“I am the President, but I am also a Dad,” he said, adding that he would have no further comment on the case. “Jill and I love our son, and we are so proud of the man he is today.”
The first lady sat in court all day Monday, her 73rd birthday, watching the proceedings quietly from the front row behind the defense table, as did Hunter Biden’s wife, Melissa, and his sister Ashley. The president was nearby most of the day, camped at their Wilmington home. He departed after court adjourned for a campaign reception in Greenwich, Connecticut.
Aboard Air Force One on Monday night, White House press secretary Karine Jean-Pierre was asked if the case might affect the president’s ability to do his job, and she replied, “Absolutely not.”
“He always puts the American people first and is capable of doing his job,” said Jean-Pierre, who declined to say if Biden got updates on the trial throughout the day or spoke to his son after the proceedings concluded.
Biden was traveling to France on Tuesday evening and will be gone the rest of the week. The first lady is scheduled to join him later this week.
The case against Hunter Biden stems from a period when, by his own public admission, he was addicted to crack. His descent followed the 2015 death of his brother from cancer. He bought and owned a gun for 11 days in October 2018 and indicated on the gun purchase form that he was not using drugs.
If convicted, Hunter Biden could face up to 25 years in prison, though first-time offenders do not get anywhere near the maximum, and it’s unclear whether the judge would give him time behind bars.
Trump is set to be sentenced on July 11 by Judge Juan M. Merchan, who raised the specter of jail time during the trial after the former president racked up thousands of dollars in fines for violating a gag order.
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LogOn: Swarms of drones can be managed by one person
The U.S. military says large groups of drones and ground robots can be managed by a single person without added stress to the operator. In this week’s episode of LogOn, VOA’s Julie Taboh reports the technologies may be beneficial for civilian uses, too. Videographer and video editor: Adam Greenbaum
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Muslim drift to Republican Party stalls amid Gaza conflict
WASHINGTON — The war in Gaza is shaking Muslim Americans’ political loyalties ahead of the U.S. presidential election in November.
Disenchanted by President Joe Biden’s embrace of Israel, many Democratic-leaning Muslims who once backed him are now vowing to withdraw their endorsement.
But it’s not just Muslim Democrats abandoning their once-preferred candidate. Some Muslim Republicans are also wavering amidst their own party’s support of Israel.
Mo Nehad, a Pakistani American Republican activist in Fort Bend County, Texas, has seen up close the political effects of the Gaza conflict on Muslim American voting.
In late 2020, Nehad, who is a small-business owner, police officer and military warrant officer, helped found a grassroots group in a bid to engage the local Muslim community with the Republican Party.
Initially focused on opposition to COVID-19 vaccine mandates and mask mandates, the group, called Muslim Americans of Texas, soon found a new cause: a conservative backlash to sex and gender education policies in local schools.
“We were essentially trying to tell the Muslim community, regardless of what has happened in the past overseas, let’s focus on national topics and events,” Nehad said in an interview. “And when you compare what traditionally a Democratic-elected president has done and a Republican-elected president has done [on national issues], a Republican-elected president is much better for the Muslims.”
The advocacy paid off, he said. While the Fort Bend County Muslim community remained solidly Democratic, a small number started crossing party lines, mirroring a pattern seen across the country.
“These are people who go to the same masjid as I do, people who are in the same home-school groups,” he said.
Then the war in Gaza broke out after the Oct. 7 Hamas attack on Israel, testing the political allegiance of Muslim Democrats and Republicans alike, with both viewing their parties as equally pro-Israel.
Many Muslim Americans who had overwhelmingly voted for Biden in 2020 fumed over the president’s support for an Israeli military campaign that has killed more than 30,000 Palestinians.
Earlier this year, a group of progressive Muslim activists launched a campaign they labeled #AbandonBiden, inducing hundreds of thousands of voters to vote “uncommitted” in key Democratic primaries in Michigan and elsewhere. Members were also threatening not to vote for Biden in November.
Republican-leaning Muslims, fewer in number, have not been as vocal. While many are backing their party, its equally staunch support of Israel has alienated some, according to Muslim activists and experts.
Nehad said that while he intends to vote for former President Donald Trump in November, some Republican Muslims are reconsidering their stance and even “going back” to the Democratic Party, drawn by that party’s stronger criticism of Israeli actions.
“They don’t want to vote for Republican candidates because the Republican candidates do not want to go ahead and openly denounce what Israel is doing,” Nehad said.
Drift to GOP stalls
Youssef Chouhoud, a political science professor at Christopher Newport University in Newport News, Virginia, said the war in Gaza appears to have paused if not blunted the recent Muslim drift to the GOP.
Had the war not occurred, he said that as many as 40% of Muslim Americans would have voted for the Republican presidential nominee in November.
“I was fully expecting that,” Chouhoud, who studies Muslim American voting behavior, said.
Now, he said he is not so sure.
“I wouldn’t be surprised if upwards of 40% are voting third party or otherwise testing some vote that is not a two-party vote,” he said.
A recent poll by the Arab American Anti-Discrimination Committee and The Truth Project showed that only 7% of Arab American voters plan to vote for Biden and 2% for Trump, with Green Party candidate Jill Stein receiving 25%.
How the Muslim vote will influence the outcome of the presidential contest between Biden and Trump remains uncertain.
Numbering about 3.5 million, Muslims make up just 1% of the U.S. population. In tight races in swing states with large Muslim populations, though, their vote could potentially sway the outcome of the election.
But American Muslims are a diverse lot, with interests and priorities often as varied as the general electorate. While anger over the Gaza conflict may have unified the community, it is not the only issue driving their voting decision, said Saher Selod, director of research for the Institute for Social Policy and Understanding, a Muslim American research group in Dearborn, Michigan.
“We need to know if [some Muslim voters] are centering this issue as a major driving force in terms of how they’re going to vote,” Selod said in an interview. “Other groups, while they might support a cease-fire, have other issues that that they’re going to vote on.”
VOA asked both the Biden and Trump campaigns about their outreach to Muslim Americans and any steps to assuage their concerns over the Gaza war.
In a statement, a Biden campaign spokesperson said, “The President shares the goal of a just and lasting peace in the region. He’s working tirelessly to that end.”
In a separate statement, the campaign’s Michigan director said the Biden team is in contact with Arab American and Muslim groups in Detroit and Dearborn. Both cities have large Muslim populations.
The Trump campaign did not respond to a request for comment. The campaign has not publicly reached out to the Muslim community on the war in Gaza, but Trump’s son-in-law, Michael Boulos, and a former Trump administration official recently met with a group of Arab Americans and Middle Eastern leaders in Michigan.
Historical patterns
Historically, Muslim American voters have oscillated between the two major political parties. Socially conservative, most voted Republican in the 1980s and 1990s, leading some party activists to hail them as “natural” allies. In 2000, a majority backed Republican George W. Bush.
That changed after the attacks of Sept. 11, as the Bush administration’s increased scrutiny of the community amid its “war on terror” sent Muslims flocking to the Democratic Party. In every presidential election since 2004, Muslims have favored the Democratic nominee.
But with memories of 9/11 fading in recent years, some Muslims began to shift back to the Republican Party, driven by shared conservative values such as opposition to abortion, gay marriage and LGBTQ-inclusive policies in schools.
“This is the social conservatism within this community kind of creeping up to the surface and guiding political decisions in light of a lot of marquee policy debates,” Chouhoud said.
Some polls confirm this recent voting trend.
In October 2020, an Institute for Social Policy and Understanding poll found 30% of Muslims approved of Trump’s job performance, up from 13% in 2018.
In November 2020, an Associated Press exit poll found that 64% supported Biden and 35% backed Trump.
Other polls showed a more modest increase in Muslim support for Trump.
Muslim support for Republican candidates continued into 2022. During that year’s midterm elections, 28% of Muslims voted Republican, up from 17% during the 2018 midterms, while 70% voted Democratic, down from 81%.
Today, the Muslim voter base is firmly rooted in the Democratic Party, though a significant slice leans Republican.
A recent Pew Research poll found that 66% of Muslim voters are Democrats or lean Democratic, while 32% are Republicans or lean Republican.
Three previous polls conducted by Pew had all shown lower-level numbers of Republican or Republican-leaning Muslim voters, according to Besheer Mohamed, a senior Pew researcher.
“There are certain issues where Muslims tend to align more with the Republican Party, Mohamed said, noting positive views of religion and skepticisms toward LGBTQ issues. “Then there are other issues where that’s not the case.”
Nehad, once an independent voter, is now a Republican. His political pivot came after he ran unsuccessfully as a Democratic candidate for constable where he said he felt pressured to champion policies that clashed with his religious convictions.
This year, he stood as a Republican candidate for Fort Bend County sheriff.
“Everything the Republican Party stands for, 70% of it aligns with my beliefs and values,” Nehad said, in a drawl honed over more than 25 years of living in the Lone Star state. “But when I compare the same with the Democratic Party, it’s only maybe 20 or 40%, if that.”
Zahoor Gire, another co-founder of the Muslim Americans of Texas, said Muslim Americans “share conservative Republican values” such as strong families, traditional marriage, traditional gender roles and opposition to abortion.
“I had family members of my own that had voted Democratic before and are now voting Republican,” Gire said.
Underscoring the renewed Muslim embrace of the Republican Party, he said a record eight Republican Muslim candidates have run for office in Texas this year.
“So that shows you the willingness of people to embrace this party and then run for office through this party’s platform,” Gire said.
To many Muslim Republicans, Trump is not the anti-Muslim politician as he is seen by others. They’ve defended his so-called “Muslim ban” as a necessary national security measure rather than a religiously motivated injunction.
But the Gaza war has become “the main issue” for Muslims in America, Gire said. And with Trump urging Israel earlier this year to “finish what they started,” his perceived support of Israel at the expense of Palestinians is giving some Muslim Republicans pause.
Asked if he will support Trump in November, Gire said, “We need to see very specifically what his foreign policies will be, what his stance towards Muslim Americans will be.”
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The cost of US elections explained
Elections in the United States are some of the most expensive in the world, with campaign spending far outpacing that in most countries. The 2020 U.S. presidential and congressional races cost $16.4 billion and experts say the cost of the 2024 races are likely to be much higher.
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What is an executive order?
U.S. citizens elect a president and a Congress to steer the country. But presidents have certain tools enabling them to alter policies on their own. One that’s gotten a lot of recent attention is the executive order.
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Fauci deflects partisan attacks in fiery House hearing over COVID
WASHINGTON — Dr. Anthony Fauci, the top U.S. infectious disease expert until leaving the government in 2022, was back before Congress on Monday, calling Republican allegations that he’d tried to cover up origins of the COVID-19 pandemic “simply preposterous.”
A GOP-led subcommittee has spent over a year probing the nation’s response to the pandemic and whether U.S.-funded research in China may have played any role in how it started — yet found no evidence linking Fauci to wrongdoing.
He’d already been grilled behind closed doors, for 14 hours over two days in January. But Monday, Fauci testified voluntarily in public and on camera at a hearing that quickly deteriorated into partisan attacks.
Republicans repeated unproven accusations against the longtime National Institutes of Health scientist while Democrats apologized for Congress besmirching his name and bemoaned a missed opportunity to prepare for the next scary outbreak.
“He is not a comic book super villain,” said Rep. Jamie Raskin, a Maryland Democrat, adding that the Select Subcommittee on the Coronavirus Pandemic had failed to prove a list of damaging allegations.
Fauci was the public face of the government’s early COVID-19 response under then-President Donald Trump and later as an adviser to President Joe Biden. A trusted voice to millions, he also was the target of partisan anger and choked up Monday as he recalled death threats and other harassment of himself and his family, the threats he said continue. Police later escorted hecklers out of the hearing room.
The main issue: Many scientists believe the virus most likely emerged in nature and jumped from animals to people, probably at a wildlife market in Wuhan, the city in China where the outbreak began. There’s no new scientific information supporting that the virus might instead have leaked from a laboratory. A U.S. intelligence analysis says there’s insufficient evidence to prove either way — and a recent Associated Press investigation found the Chinese government froze critical efforts to trace the source of the virus in the first weeks of the outbreak.
Fauci has long said publicly that he was open to both theories but that there’s more evidence supporting COVID-19’s natural origins, the way other deadly viruses including coronavirus cousins SARS and MERS jumped into people. It was a position he repeated Monday as Republican lawmakers questioned if he worked behind-the-scenes to squelch the lab-leak theory or even tried to influence intelligence agencies.
“I have repeatedly stated that I have a completely open mind to either possibility and that if definitive evidence becomes available to validate or refute either theory, I will readily accept it,” Fauci said. He later invoked a fictional secret agent, decrying a conspiracy theory that “I was parachuting into the CIA like Jason Bourne and told the CIA that they should really not be talking about a lab leak.”
Republicans also have accused Fauci of lying to Congress in denying that his agency funded “gain of function” research — the practice of enhancing a virus in a lab to study its potential real-world impact — at a lab in Wuhan.
NIH for years gave grants to a New York nonprofit called EcoHealth Alliance that used some of the funds to work with a Chinese lab studying coronaviruses commonly carried by bats. Last month, the government suspended EcoHealth’s federal funding, citing its failure to properly monitor some of those experiments.
The definition of “gain of function” covers both general research and especially risky experiments to “enhance” the ability of potentially pandemic pathogens to spread or cause severe disease in humans. Fauci stressed he was using the risky experiment definition, saying “it would be molecularly impossible” for the bat viruses studied with EcoHealth’s funds to be turned into the virus that caused the pandemic.
In an exchange with Rep. H. Morgan Griffith, a Republican from Virginia, Fauci acknowledged that the lab leak is still an open question since it’s impossible to know if some other lab, not funded by NIH money, was doing risky research with coronaviruses.
Fauci did face a new set of questions about the credibility of NIH’s National Institute of Allergy and Infectious Diseases, which he led for 38 years. Last month, the House panel revealed emails from an NIAID colleague about ways to evade public records laws, including by not discussing controversial pandemic issues in government email.
Fauci denounced the actions of that colleague and insisted that “to the best of my knowledge I have never conducted official business via my personal email.”
The pandemic’s origins weren’t the only hot topic. The House panel also blasted some public health measures taken to slow spread of the virus before COVID-19 vaccines, spurred by NIAID research, helped allow a return to normalcy. Ordering people to stay 6 feet apart meant many businesses, schools and churches couldn’t stay open, and subcommittee chairman Rep. Brad Wenstrup, a Republican from Ohio, called it a “burdensome” and arbitrary rule, noting that in his prior closed-door testimony Fauci had acknowledged it wasn’t scientifically backed.
Fauci responded Monday that the 6-feet distancing wasn’t his guideline but one created by the Centers for Disease Control and Prevention before scientists had learned that the new virus was airborne, not spread simply by droplets emitted a certain distance.
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US freedoms encourage immigrant comedians
Much of stand-up comedy in the United States is rooted in the country’s freedoms of speech. In Southern California, that attracts immigrant comedians eager to express their opinions and make people laugh. Genia Dulot reports.
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US veterans get heroes’ welcome in France ahead of D-Day anniversary
DEAUVILLE/PARIS — Crowds cheered and applauded as U.S. veterans arrived at French airports ahead of ceremonies marking the 80th anniversary of D-Day, when more than 150,000 Allied soldiers landed in Normandy to drive out Nazi Germany forces.
Many of those flying in over the weekend into Monday were older than 100, pushed on wheelchairs by relatives and aides.
“It’s unreal. It’s unreal. Wow,” 107-year-old Reynolds Tomter said at Paris Charles-de-Gaulle airport as students waved U.S. and French flags and held up photos of the veterans.
“It feels great … and I’m so thankful that I got the opportunity to be back out here, my son with me,” said 101-year-old Bill Wall, as his son, Ray, pushed him through arrivals.
“I lost some great friends. All of these people who are out there on their crosses and unmarked graves are the true heroes. It gives me a chance to pay tribute to them which they so need. It will bring back some memories of some great people,” he added.
After shaking hands with students, 95-year-old Dave Yoho said: “My heart is full. My heart is full.”
In Deauville, Normandy, a specially chartered flight landed on Monday.
Across Normandy, where beaches and fields still bear the scars of the fighting that erupted on June 6, 1944 and the weeks that followed, preparations were in full gear for official ceremonies. World leaders from U.S. President Joe Biden to German Chancellor Olaf Scholz will attend.
Already, at the weekend, in Vierville-sur-Mer, a town just above Omaha Beach – one of the sectors where U.S. soldiers landed – a re-enactment camp was set up, giving visitors a chance to see what equipment the soldiers were using.
People took rides in World War Two jeeps and armored vehicles.
“It’s always very intense when we meet veterans, because they always have many stories to tell, and you still feel the emotion,” said Julie Boisard, who lives in Normandy and took part in the re-enactment.
A handful of serving members of the Virginia National Guard 29th Infantry Division gazed out over the beach their elders stormed 80 years earlier.
“It’s historic, it’s memorable … and it’s very emotional as well,” said U.S. serviceman Esaw Lee. “Those guys were so courageous and so mythical. They were legendary.”
With war raging on Europe’s borders in 2024, this anniversary’s D-Day ceremony will carry special resonance.
Ukrainian President Volodymyr Zelenskiy will be among the guests. Russia, which launched a full-scale invasion of Ukraine in 2022, touching off Europe’s biggest armed conflict since World War Two, was not invited to the D-Day events.
The commemorations “remind us that we were occupied for four years and were liberated by the Americans,” said Marie-Therese Legallois, who was seven at the time of D-Day, and remembers it vividly.
“But I always have a bit of sadness to see that the war continues, in Ukraine or elsewhere.”
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CEOs got hefty pay raises in 2023, widening the gap with the workers they oversee
New York — The typical compensation package for chief executives who run companies in the S&P 500 jumped nearly 13% last year, easily surpassing the gains for workers at a time when inflation was putting considerable pressure on Americans’ budgets.
The median pay package for CEOs rose to $16.3 million, up 12.6%, according to data analyzed for The Associated Press by Equilar. Meanwhile, wages and benefits netted by private-sector workers rose 4.1% through 2023. At half the companies in this year’s pay survey, it would take the worker at the middle of the company’s pay scale almost 200 years to make what their CEO did.
CEOs got rewarded as the economy showed remarkable resilience, underpinning strong profits and boosting stock prices. After navigating the pandemic, companies faced challenges from persistent inflation and higher interest rates. About two dozen CEOs in the AP’s annual survey received a pay bump of 50% or more.
“In this post-pandemic market, the desire is for boards to reward and retain CEOs when they feel like they have a good leader in place,” said Kelly Malafis, founding partner of Compensation Advisory Partners in New York. “That all combined kind of leads to increased compensation.”
But Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies, believes the gap in earnings between top executives and workers plays into the overall dissatisfaction among Americans about the economy.
“Most of the focus here is on inflation, which people are really feeling, but they’re feeling the pain of inflation more because they’re not seeing their wages go up enough,” she said.
Many companies have heeded calls from shareholders to tie CEO compensation more closely to performance. As a result, a large proportion of pay packages consist of stock awards, which the CEO often can’t cash in for years, if at all, unless the company meets certain targets, typically a higher stock price or market value or improved operating profits. The median stock award rose almost 11% last year compared to a 2.7% increase in bonuses.
The AP’s CEO compensation study included pay data for 341 executives at S&P 500 companies who have served at least two full consecutive fiscal years at their companies, which filed proxy statements between Jan. 1 and April 30.
Top earners
Hock Tan, the CEO of Broadcom Inc., topped the AP survey with a pay package valued at about $162 million.
Broadcom granted Tan stock awards valued at $160.5 million on Oct. 31, 2022, for the company’s 2023 fiscal year. Tan was given the opportunity to earn up to 1 million shares starting in fiscal 2025, according to a securities filing, provided that Broadcom’s stock meets certain targets – and he remains CEO for five years.
At the time of the award, Broadcom’s stock was trading at $470. Tan would receive portions of the stock awards if the stock hit $825 and $950 and the the full award if the average closing price is at or above $1,125 for 20 consecutive days between October 2025 and October 2027. The targets seemed ambitious when set, but the stock has skyrocketed since, and reached an all-time closing high of $1,436.17 on May 28.
Like rival Nvidia Inc., Broadcom is riding the current artificial intelligence frenzy among tech companies. Its chips are used by businesses and public entities ranging from major banks, retailers, telecom operators and government bodies.
In granting the stock award, Broadcom noted that under Tan its market value has increased from $3.8 billion in 2009 to $645 billion (as of May 23) and that its total shareholder return during that time easily surpassed that of the S&P 500. It also said Tan will not receive additional stock awards during the remainder of the five-year period.
Other CEOs at the top of AP’s survey are William Lansing of Fair Isaac Corp, ($66.3 million); Tim Cook of Apple Inc. ($63.2 million); Hamid Moghadam of Prologis Inc. ($50.9 million); and Ted Sarandos, co-CEO of Netflix ($49.8 million).
At Apple, Cook’s compensation represented a 36% decline from the year prior. Cook requested a pay cut for 2023, in response to the vote at Apple’s 2022 annual meeting, where just 64% of shareholders approved of his pay package.
The survey’s methodology excluded CEOs such as Nikesh Arora at Palo Alto Networks ($151.4 million) and Christopher Winfrey at Charter Communications ($89 million).
Although securities filings show Elon Musk received no compensation as CEO of Tesla Inc., his pay is currently front and center at the electric car company. Musk is asking shareholders to restore a pay package that was struck down by a judge in Delaware, who said the approval process for the package was “deeply flawed.” The compensation, mostly stock awards valued at $2.3 billion when granted in 2018, is now estimated to be worth around $45 billion.
CEO pay vs workers
Workers across the country have been winning higher pay since the pandemic, with wages and benefits for private-sector employees rising 4.1% in 2023 after a 5.1% increase in 2022, according to the Labor Department.
Even with those gains, the gap between the person in the corner office and everyone else keeps getting wider. Half the CEOs in this year’s pay survey made at least 196 times what their median employee earned. That’s up from 185 times in last year’s survey.
The gap is particularly wide at companies where employees typically earn lower wages, such as retailers. At Ross Stores, for example, the company says its employee at the very middle of the pay scale was a part-time retail store associate who made $8,618. It would take 2,100 years earning that much to equal CEO Barbara Rentler’s compensation from 2023, valued at $18.1 million. A year earlier, it would have taken the median worker 1,137 years to match the CEO’s pay.
Corporate boards often feel pressure to keep upping the pay for well-performing CEOs out of fear that they’ll walk out the door and make more at a rival. They focus on paying compensation that is competitive within their industry or marketplace and not on the pay ratio, Malafis said. The better an executive performs, the more the board is willing to pay.
The disparity between what the chief executive makes and the workers earn wasn’t always so wide.
After World War II and up until the 1980s, CEOs of large publicly traded companies made about 40 to 50 times the average worker’s pay, said Brandon Rees, deputy director of corporations and capital markets for the AFL-CIO, which runs an Executive Paywatch website that tracks CEO pay.
“The [current] pay ratio signals a sort of a winner take all culture, that companies are treating their CEOs as, you know, as superstars as opposed to, team players,” Rees said.
Say on pay
Despite the criticism, shareholders tend to give overwhelming support to pay packages for company leaders. From 2019 to 2023, companies typically received just under 90% of the vote for their executive compensation plans, according to data from Equilar.
Shareholders do, however, occasionally reject a compensation plan, although the votes are non-binding. In 2023, shareholders at 13 companies in the S&P 500 gave the executive pay packages less than 50% support.
After its investors gave another resounding thumbs down to the pay packages for its top executives, Netflix met with many of its biggest shareholders last year to discuss their concerns. It also talked with major proxy-advisory firms, which are influential because they recommend how investors should vote at companies’ annual meetings.
Following the talks, Netflix announced several changes to redesign its pay policies. For one, it eliminated executives’ option to allocate their compensation between cash and options. It will no longer give out stock options, which can give executives a payday as long as the stock price stays above a certain level. Instead, the company will give restricted stock that executives can profit from only after a certain amount of time or after certain performance measures are met.
The changes will take effect in 2024. For last year, co-CEO Ted Sarandos received options valued at $28.3 million and a cash bonus of $16.5 million. Co-CEO Greg Peters received options valued at $22.7 million and a cash bonus of $13.9 million.
Anderson, of the Institute for Policy Studies, said Say on Pay votes are important because they “shine a spotlight on some of the most egregious cases of executive access, and it can lead to negotiations over pay and other issues that shareholders might want to raise with corporate leadership.”
“But I think the impact, certainly on the overall size of CEO packages has not had much effect in some cases,” she said.
Female CEOs
More women made the AP survey than in previous years, but their numbers in the corner office are still minuscule compared to their male counterparts. Of the 342 CEOs included in Equilar’s data, 25 were women.
Lisa Su, CEO and chair of the board of chip maker Advanced Micro Devices, was the highest paid female CEO in the AP survey for the fifth year in a row in fiscal 2023, bringing in compensation valued at $30.3 million — flat with her compensation package in 2022. Her overall rank rose to 21 from 25.
The other top paid female CEOs include Mary Barra of automaker General Motors ($27.8 million); Jane Fraser of banking giant Citigroup ($25.5 million); Kathy Warden of aerospace and defense company Northrop Grumman Corp. ($23.5 million); and Carol Tome of package deliverer UPS Inc. ($23.4 million).
The median pay package for female CEOs rose 21% to $17.6 million. That’s better than the men fared: Their median pay package rose 12.2% to $16.3 million.
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Sally Buzbee steps down as executive editor of The Washington Post
New York — The Washington Post said Sunday that its executive editor, Sally Buzbee, has stepped down after three years at the top of one of journalism’s most storied brands.
She will be replaced by Matt Murray, former editor in chief of The Wall Street Journal, through this fall’s presidential election. Following that, Robert Winnett, deputy editor of the Telegraph Media Group, will take over as editor as the newsroom restructures its operations.
No reason was given for Buzbee’s departure. She wasn’t quoted in the news release announcing that she was leaving and did not immediately return a message seeking comment.
The Post also announced that it was launching a new division in its newsroom dedicated to reaching audiences who want to pay for and consume news in a different way.
Buzbee, former top editor at The Associated Press, was selected as the Post’s top editor in May 2021. She replaced a renowned predecessor, Martin Baron, after the Post exploded in popularity during the Trump administration.
Buzbee was the first woman to serve as executive editor of The Washington Post. And like Jill Abramson, the first woman to be top editor at The New York Times, her tenure was short: Abramson had her job from 2011 to 2014.
It has been a miserable few years financially for the news industry, including for the Post. It has bled subscribers to the point where new publisher, Will Lewis, told employees last month that the newspaper lost $77 million last year.
“To speak candidly, we are in a hole, and have been for some time,” Lewis said, according to the Post.
Lewis was named late last year to replace Fred Ryan as Post publisher. He has worked at both The Wall Street Journal and The Telegraph in England, the places he turned to to find the new executives.
He’s talked about creating a multi-tier subscription plan for The Post, similar to that in place at Politico. In an email to employees late Sunday, Lewis said the new department will focus on more video storytelling, embrace artificial intelligence and flexible payment methods. It will begin this fall, he said.
In an earlier meeting, “we highlighted the need to move away from the traditional one-size-fits-all approach in the news media industry and focus on creating news for a broader range of readers and customers.”
It augurs a change to the traditional structure of the Post. In his memo, Lewis mentioned “three newsrooms.” Winnett will not take on the title of executive editor, but he will be responsible for the “core coverage areas” of politics, investigations, business, technology, sports and features. He has run The Telegraph’s news operations since 2013, the Post said.
Murray will take over as leader of the newly created department starting Nov. 6, the Post said. No one will have the title of executive editor: Murray, Winnett and David Shipley, the editorial page editor who will lead the “opinions newsroom,” will each report directly to Lewis, the Post said.
“By creating three strong journalism functions — core, service/social and opinions — we are taking a definitive step away from the ‘one size fits all’ approach and moving towards meeting our audiences where they are,” Lewis said.
The Post won three Pulitzer Prizes last month, including one in national reporting for a vivid series on the impact of the AR-15 rifle.
Puerto Rico Rep. Jesús Manuel Ortiz wins gubernatorial primary
SAN JUAN, Puerto Rico — Puerto Rico Rep. Jesús Manuel Ortiz defeated Sen. Juan Zaragoza in a gubernatorial primary held Sunday by their Popular Democratic Party, which seeks a return to power in the upcoming general elections.
Zaragoza conceded defeat after obtaining 38% of the votes to his rival’s 62%, even though only a little more than 60% of the votes had been counted.
Meanwhile, Gov. Pedro Pierluisi was still locked in a battle against Puerto Rico congresswoman Jenniffer González in a primary held by the pro-statehood New Progressive Party. The two ran on the same ticket four years ago, but González announced her plan to challenge Pierluisi in early December.
All candidates face disgruntled voters on an island still struggling with chronic power outages and awaiting completion of reconstruction projects following Hurricane Maria, which hit as a Category 4 storm in September 2017.
Other ongoing complaints include the difficulty of obtaining business permits, a fractured education system and the lack of access to capital markets after the local government emerged two years ago from the biggest U.S. municipal bankruptcy in history after announcing in 2015 that it was unable to pay its more than $70 billion public debt load.
The debt was accumulated by governments that overspent, overestimated revenue and borrowed millions despite a ballooning debt.
Running alongside Pierluisi for the position of congressional representative was Puerto Rico Sen. William Villafañe, while senior U.S. naval military officer Elmer Román, a former secretary of state for Puerto Rico, sought the position under González.
Meanwhile, Puerto Rico Sen. Juan Zaragoza, who was highly lauded for his work as the island’s former treasury secretary, ran against Rep. Jesús Manuel Ortiz to be the main candidate for the Popular Democratic Party, which supports the island’s status quo as a U.S. territory.
Attorney Pablo José Hernández was running unopposed to be the party’s candidate for resident commissioner, the first person in 20 years to seek that nomination.
Voting centers closed Sunday evening, with political pundits warning that voter turnout appeared low and that electronic voting machines did not properly work in some towns, although it was too early to determine the magnitude of the problem.
All candidates faced disgruntled voters on an island still struggling with chronic power outages and high electric bills as it awaits completion of reconstruction projects following Hurricane Maria, which hit as a Category 4 storm in September 2017.
Power outages were reported at more than a dozen voting centers, including one where Ortiz arrived to cast his vote, forcing officials to revert to a manual process. Heavy rains also pelted parts of the island, with flood warnings issued for nearly a dozen towns and cities.
Power outages remain such a big concern that the State Commission of Elections rented more than a dozen generators and a private power company identified 81 alternate voting sites with guaranteed electricity.
“It’s been years since I last voted,” said Benito López, a 66-year-old retiree wearing a T-shirt that read, “The Island of Enchantment.” He planned to cast a vote for a candidate he would not reveal “to see if there’s any improvement and change.”
Other voter complaints include the difficulty of obtaining business permits, a fractured education system, and the island’s lack of access to capital markets after the local government emerged two years ago from the largest debt restructuring in U.S. history.
Meanwhile, more than $9 billion of debt owed by Puerto Rico’s power company, the largest of any government agency, remains unresolved. A federal judge overseeing a bankruptcy-like process has yet to rule on a restructuring plan following bitter negotiations between the government and bondholders.
“They have broken Puerto Rico,” said 79-year-old Cecilio Rodríguez of the current and previous administrations as he waited to cast his vote. “Economic development must be a priority.”
For other voters, stopping the exodus of doctors from Puerto Rico and improving the U.S. territory’s crumbling health system is a priority.
“The patients are the ones who have to stay here and endure this. It’s not fair,” said Dr. Alfredo Rivera Freytes, an anesthesiologist who left Puerto Rico for the U.S. Virgin Island of St. Thomas because of the ongoing problems with the local health system.
He returned two years ago with plans to retire but found himself working again because of the need for anesthesiologists in Puerto Rico.
Ahead of the primaries, Pierluisi has touted record tourist numbers, ongoing hurricane reconstruction and growing economic development among his successes as he seeks re-election. He has pledged to prioritize projects targeting children and the island’s growing elderly population, among other things.
An event marking the end of his campaign held a week before the primaries was headlined by former Gov. Ricardo Rosselló, who resigned in August 2019 following nearly two weeks of massive protests touched off by a leak of crude and insulting chat messages between him and his top advisers.
His opponent, González, did not hold a campaign closer. She has pledged to crack down on corruption, award more funds to agencies to help victims of violence amid a surge in killings of women, and stem an exodus of doctors and other medical workers to the U.S. mainland.
Meanwhile, Zaragoza has promised to prioritize climate change and renewable energy, decentralize the island’s education department and improve access to health. His opponent, Ortiz, has pledged to improve the licensing process to retain doctors, simplify the island’s tax system and revamp health care.
Puerto Rico’s next governor will have to work alongside a federal control board that oversees the island’s finances and was created after the government declared bankruptcy.
Ahead of Sunday’s primaries, more than 4,900 inmates voted in prisons across the U.S. territory. The State Commission of Elections also has received and counted more than 122,000 early ballots.
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Border mayors heading to DC for Tuesday’s immigration announcement
McALLEN, TEXAS — At least two Texas border mayors are headed to Washington on Tuesday when President Joe Biden is expected to announce an executive order that will mark his latest and most aggressive plan to curtail the number of migrants allowed to seek asylum in the U.S.
Brownsville Mayor John Cowen and Edinburg Mayor Ramiro Garza both confirmed they were invited by the White House for an immigration announcement on Tuesday. Cowen told the Associated Press that he plans to attend, while Garza said he would have more details on Monday about his plans.
Notably, the Democratic mayor of Eagle Pass, the Texas-Mexico border town where the number of migrants led to a state-federal clash over border security, had not received an invitation as of Sunday. The mayor from McAllen said he was invited but could not attend because of a prior commitment.
A White House spokesman did not immediately return a request for comment on other mayors who were invited to the announcement.
The AP reported last week that the White House was finalizing an executive order that could shut off asylum requests and automatically deny entrance to migrants once the number of people encountered by U.S. border officials exceeded a new daily threshold.
The unilateral action is expected even as the number of border crossings at the southern U.S. border has declined since December, due in large part to Mexico’s escalated enforcement efforts. But Biden wants to head off any potential spike in crossings that could occur later in the year, as the fall election draws closer, when the weather cools and numbers tend to rise.
Immigration remains a concern for voters ahead of the November elections, with Republicans eager to punish Biden electorally over the issue. Democrats have responded that Republicans, at the behest of Donald Trump, killed a bipartisan border deal in Congress that would have led to the toughest legislative restrictions on asylum in years.