Hello, my most beloved subscribers!

We’ve been hanging at the Web Summit in Vancouver this week, so we’ve got some deep dives on AI, the attention economy, and a nice sorbet of a refreshing interview with Dr. Cornel West in today’s N2K newsletter. Plus, we tell you what’s next for tariffs now that a court has said they’re illegal.

News you Need2Know

• Court strikes down tariffs; Now what?!

• CEO pay rose nearly 10% in 2024

• Inside IBM's $500 Million AI Investment Fund

• How AI Impacts the 'Attention Economy'

• Dr. Cornel West Takes on Trump 2.0

Vive la révolucion! Sorry, I meant: “Capitalism is working out great for me.” Have your say on CEO pay in today’s poll 👇🏻. Have a great weekend.

—Matt Davis, Need2Know Chedditor

Companies mentioned in today’s newsletter

$SPX ( ▼ 0.01% )  $AXON ( ▲ 2.75% )  $AAPL ( ▲ 0.45% )  $NFLX ( ▲ 1.89% )  $IBM ( ▲ 0.14% )  

Court strikes down tariffs; Now what?!

Our open rates on these emails go down when the headline mentions tariffs, presumably because you’re as bored/tired/past caring about the impacts of every twist and turn in the trade war as I am.

That said, a federal court waved a big, red stop sign in President Donald Trump's tariff path on Wednesday, with a three-judge panel concluding that Trump had taken his imagination for a walk too far when he used the 1977 International Emergency Economic Powers Act to declare a national emergency over trade deficits.

It turns out there is no emergency, the court ruled, and the judges’ decision was a genuine shocker for Trump. However, the Court of Appeals for the Federal Circuit decided on Thursday to let him continue his tariff collection, at least until he can appeal this pesky roadblock. The case could have wide-ranging implications for Trump’s trade policies. Everyone expects this legal saga to end up at the U.S. Supreme Court.

The markets, usually thrilled by the death of a tariff, barely batted an eyelash at this news.

“Investors are not getting too carried away, presumably in the expectation that the White House will find a workaround that allows them to continue to pursue their trade agenda,’’ said Matthew Ryan, head of market strategy at the financial services firm Ebury.

I get carried away, meanwhile, as often as I can. Life’s more interesting that way. Especially when your 401 (k) is still struggling to reach its levels from February.

CEO pay rose nearly 10% in 2024

It would now take 192 years for the average worker to earn their boss’s annual paycheck.

In 2024, the typical compensation package for S&P 500 $SPX ( ▼ 0.01% ) executives surged nearly 10%, hitting a jaw-dropping median of $17.1 million. Meanwhile, the median employee saw a modest 1.7% increase, earning a humble $85,419, which is practically pocket change compared to their boss.

Rick Smith of Axon Enterprises $AXON ( ▲ 2.75% ) earned $164.5 million in a package mostly consisting of stock tied to performance targets. Other top earners included Tim Cook at Apple $AAPL ( ▲ 0.45% ) ($74.6 million) and Ted Sarandos at Netflix $NFLX ( ▲ 1.89% ) ($61.9 million).

But it’s all justified, right? Stock prices soared, profits ballooned, and, apparently, tying CEO pay to performance works like magic. Meanwhile economist Sarah Anderson, who is clearly a communist, told the AP: “These huge disparities… undercut enterprise effectiveness by lowering employee morale.”

Today on the ‘gram: Nvidia profits boom

Post of the day: What’s this so-called “climate change” thing Hawaii is taxing, now?

Quote of the Day

Inside IBM's $500 Million AI Investment Fund

HAL, the robot in “Space Odyssey” was named after IBM $IBM ( ▲ 0.14% ) , with Stanley Kubrick just backing up a letter in the alphabet. Naughty. Still, Emily Fontaine, IBM's Global Head of Venture Capital, joined us at web summit in Vancouver to explain how the company seeks out new AI startups. It turns out it does not look for malevolence over pod doors. In fact, it looks for things like tangible results and opportunity to change the world. Hooray!

The firm’s new $500 million AI fund is for the firm “to find great startups, meet investors, really build a community and an ecosystem,” she said.

Fontaine stressed the importance of demonstrable results. “Can you open your laptop right now, or can you actually show me the system?” she said. “I don't want to see something that's been programmed. I want to be able to feed you my data, and I want you to be able to get real active results.”

Fontaine also addressed the future impact of AI on the job market and organizational efficiency. “It's going to replace some jobs, but I think that's natural,” she said. “I think as the evolution of technology has come over time, we've seen this, but what it's gonna do is allow people to get higher paying jobs, right? It's gonna allow us to re-skill.”

Does this mean I’ll be CEO of IBM soon?

Should you check your 401(k) today?

👍️ 

Sure, why not.

How AI Impacts the 'Attention Economy'

The marketing landscape is rapidly evolving, especially with the integration of AI. Marco Pimentel, CMO of RedBrick, said: “This seems like it's fast, and it just keeps going faster.”

Redbrick is a Certified B Corp tech company, home to passionate innovators with a mission to build, acquire, and scale technology. Together, its products serve almost a billion people each month, and rising.

“People used AI three months ago and said, ‘it wasn't very good.’ Or ‘it didn't change the outcomes of my marketing campaigns,’ or ‘the result was not great’,” Pimentel said. “Problem is that was three months ago, and today, if you start using it, you'll be like, ‘oh, that actually kind of works.’"

Agreed. The key is to stay engaged, learn, and adapt to the changing technology, Pimentel said. Or, you know…you could bury your head in the sand and hope you still have a job next year?

Dr. Cornel West Takes on Trump 2.0

So what if his 2024 independent presidential candidacy didn’t quite have Trump cowering in his shoes? Dr. Cornel West certainly remains an interesting fellow to talk to, blending philosophical wisdom with sharp political commentary, and grappling with life’s fundamental questions.

He asked our reporter, J.D. Durkin: "How do we learn how to love? How do we learn how to hope? And how do we learn how to laugh?"

Sadly, J.D. did not have a haiku prepared to respond with.

Dr. West passionately advocates for “transformation” over “mere transaction”. He said: "Transaction is too flat. There’s not enough love in it. There’s not enough humor in it."

Addressing the political climate, Dr. West did not hold back. Of the Trump administration, he remarked, "My expectations were so low for brother Trump... I just see too much organized greed and weaponized hatred."

Brother Trump, eh? I sort of love that expression. And he expressed a wish for more compassion.

"When you view cruelty as strategy and empathy for others as an enemy, that’s not a morally desirable way of being in the world," he said.

Despite his strong criticism, Dr. West maintains a belief in the possibility of change: "He has the capacity to change, why? Because he’s made in an image of the same God I am," he said. And then he said…

Poll of the Day: Off with their heads?

Poll Results: You should get to the airport 90 minutes early

We asked: How soon do you like to get to the airport before a domestic flight?

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ 30 minutes. I'm like human Xanax. (34 votes)

⬜️⬜️⬜️⬜️⬜️⬜️ 45 minutes. I'm like human Valium. (35 votes) 🟨🟨🟨🟨⬜️⬜️

1 hour. I'm the bare minimum human who isn't on tranquilizers. (239 votes)

🟩🟩🟩🟩🟩🟩 90 minutes. I'm a sane, well-prepared human who is a realist about possible delays. (347 votes)

🟨🟨🟨🟨⬜️⬜️ 2 hours. Don't tell ME TO RELAX. (227 votes)

882 Votes via @beehiiv polls

I’m with those 227 sane people at the end there, btw.

Coming soon: The Disruptors

Airing on Tuesday Jun 3 at 8:30 p.m. ET wherever you watch Cheddar, The Disruptors dives deep into the lives and minds of visionary entrepreneurs, innovators, and change-makers who are revolutionizing industries and shaping the future. Each episode will profile a different disruptor, exploring their personal journeys, motivations, challenges, and the groundbreaking solutions they’ve brought to the world. Find out more at the Disruptors website!