1 Gone
Dec 28, 2017

Here's another example

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  • 1 Gone
    Dec 31, 2018

    The gas pedal is down and Business is driving out of the state. New study confirms business flight from California accelerating � �(iStockphoto) By JON COUPAL | | PUBLISHED: : December 23, 2018 at 12:44 pm The evidence is more than anecdotal. According to a recent study, business flight out of California has accelerated to an unprecedented level. In 2016, the year for which the most recent data is available, 1,800 businesses moved out or “disinvested” from California. This is the highest one-year total in the nine-year history of tracking by the study’s author. The study was released by Spectrum Location Services, a firm specializing in advising businesses about the relative advantages or disadvantages of doing business in various locations. The firm’s principal, Joseph Vranich, is well-versed in California public policy. Not only has he tracked business flight out of the Golden State for nearly a decade, he was the co-author of the study of California’s High Speed Rail Project conducted in 2008, even before voters approved the bond measure. That study was prescient in predicting that the HSR project would meet virtually none of the promises made to voters. The frequency of business abandonment may have started with a trickle, but it has now become a torrent. A harbinger of the trend occurred in 2005 when Buck Knives, a company founded in 1905 in San Diego, pulled up stakes and moved to Idaho. City leaders attributed the loss to California’s increasingly hostile attitude to the private sector. Since then, a litany of businesses with household names have followed suit, either by abandoning the state entirely or expanding major operations elsewhere. For example, Intel has invested billions in chip manufacturing plants in Oregon, New Mexico and Arizona. Nestle Corp. moved its headquarters from Glendale to Virginia. Others on the list include Waste Connections, Comcast, Campbell’s Soup, Tesla, Apple, Boeing and Farmers Brothers. One of the more surprising conclusions of the report is that California’s crushing tax burden is no longer the primary motive for disinvestment. Surprising indeed, considering that California has the highest income tax rate in America as well as the highest state sales tax rate. And for businesses, California has the highest corporate tax rate west of the Mississippi. But despite all that tax negativity, it is California’s laughable legal environment that provides the prime incentive to get the heck out of Dodge. According to Vranich, “California politicians threaten the well-being of businesses with one harsh law or regulation after another. Now, in 2018, the state has reached a new low with an awful law.” California’s new Immigrant Worker Protection Act states that an employer that follows federal immigration law is now violating state immigration law and is committing a crime. However, it remains true that an employer failing to follow federal immigration law is also committing a crime. Vranich correctly notes that this absurd catch-22 puts businesses in a “lose-lose” situation, exposing them to potentially criminal liability. If the California business community believes that the state has hit rock bottom in its hostility to the free market, it would be mistaken. November’s election gave the state’s Democrats — the vast majority of whom are radical progressives — a supermajority in both houses. This means that state tax increases can be enacted and anti-taxpayer, anti-business constitutional amendments can be placed on the statewide ballot, both without the need of a single Republican vote. For business owners or corporate executives in California who are reaching the breaking point over the state’s hostility toward them, they would be well advised to obtain a copy of Spectrum Location Services’ full report, available by visiting https://spectrumlocationsolutions.com. For businesses deciding to tough it out in California, good luck. Jon Coupal is president of the Howard Jarvis Taxpayers Association.
  • 1 Gone
    Oct 15, 2018

    Just hand your keys to the state of CA, they control it all anyway..... Gov. Jerry Brown signs bill requiring California corporate boards to include women By PATRICK MCGREEVY SEP 30, 2018 | 4:00 PM| SACRAMENTO � �Gov. Jerry Brown talks to Senate leader Toni Atkins of San Diego after a 2015 news conference. Atkins wrote a bill to require corporate boards to include women. (Rich Pedroncelli / Associated Press) Gov. Jerry Brown on Sunday signed a bill into law that makes California the first state to require corporate boards of directors to include women, saying that despite potentially “fatal” legal problems in the measure, it is time to force action. “Given all the special privileges that corporations have enjoyed for so long, it’s high time corporate boards include the people who constitute more than half the ‘persons’ in America,” Brown wrote in a signing message. The new law requires publicly traded corporations headquartered in California to include at least one woman on their boards of directors by the end of 2019 as part of an effort to close the gender gap in business. By the end of July 2021, a minimum of two women must sit on boards with five members, and there must be at least three women on boards with six or more members. Companies that fail to comply face fines of $100,000 for a first violation and $300,000 for a second or subsequent violation. Business groups have questioned the legality of a state imposing such requirements on corporations, many of which are incorporated in other states. But Brown was not persuaded by the opposition. He copied his signing letter to the U.S. Senate’s Judiciary Committee, which has advanced Judge Brett Kavanaugh’s nomination to the Supreme Court to the full Senate despite testimony by a woman who said he groped her when they were in high school. “There have been numerous objections to this bill, and serious legal concerns have been raised,” Brown said. “I don’t minimize the potential flaws that indeed may prove fatal to its ultimate implementation. Nevertheless, recent events in Washington, D.C. — and beyond — make it crystal clear that many are not getting the message.” The new law may, in fact, be vulnerable to a court challenge, said Jessica Levinson, a clinical professor of law at Loyola Law School in Los Angeles. “I’m not at all convinced it would pass legal muster,” she said. “It’s a clear gender preference in that you are saying you need to single out women and get them on boards. The question is can you make that preference and will it hurt men.” A quarter of California’s publicly traded companies do not have a woman on their boards, according to Hannah-Beth Jackson (D-Santa Barbara), who introduced the legislation with Senate President Pro-Tem Toni Atkins (D-San Diego). ”The time has come for California to bring gender diversity to our corporate boards,” Jackson said in a statement. “With women comprising over half the population and making over 70% of purchasing decisions, their insight is critical to discussions and decisions that affect corporate culture, actions, and profitability.” There are 377 California-based companies in the Russell 3000 stock index of large firms with all-male boards that could be affected by the new law, said Annalisa Barrett, a clinical professor of finance at the University of San Diego's School of Business. Hundreds of smaller firms will also be affected by the law, she said. TiVo’s seven-member board is all male, as is the five-member board of Stamps.com, which responded to a Times question on the new mandate with a statement saying it “is reviewing the law but otherwise has no comment at this time.” Those concerned about the lack of gender equity in the boardroom include Shannon Gordon, the CEO of theBoardlist, which connects executives and investors with qualified women who may not otherwise be considered for board appointments. “The problem is extensive,” Gordon said. “Given the numbers, it’s clear that we haven’t made as much progress as we’d all like to see. We are on pace right now to reach gender parity in boardrooms by 2055. So we are just not where we need to be.” The legislation is opposed by more than 30 business groups, including the California Chamber of Commerce, which said it appears to violate existing law and the state and U.S. constitutions because it will “displace an existing member of the board of directors solely on the basis of gender.” The coalition of opponents sent a letter to state officials saying they are committed to workplace diversity, but added, “We are concerned that the mandate under SB 826 that focuses only on gender potentially elevates it as a priority over other aspects of diversity.” The opponents include the California Restaurant Assn. and chambers of commerce in Long Beach, Simi Valley, Garden Grove, Redondo Beach, Cerritos and Brea. The business groups added that federal law says corporations are governed by the laws of the state in which they are incorporated, not by the state where their main office is located. More than 80% of the Russell 3000 companies headquartered in California are incorporated in Delaware, according to Barrett, who also heads the firm Board Governance Research LLC. The conflict created by the new law, the business groups warned, will create “confusion and ambiguity” that “will only lead to costly fines as proposed under the bill and potential litigation.” If the law survives a legal challenge, 684 women will be needed to fill board seats for Russell 3000 companies by 2021, Barrett said.
  • 1 Gone
    Aug 22, 2018

    Companies are falling like Dominos.. North Face plans move to Denver from Bay Area by 2020, transferring 650 jobs: report By Ken Martin Published August 15, 2018 Markets FOXBusiness � �article The North Face is moving out of the San Francisco Bay Area and heading to the Mile-High City. The apparel maker will take 650 jobs with it, according to the San Francisco Chronicle. Earlier this week, parent company VF Corp. announced it would split into two independent, publicly traded companies. Getting most of the headlines was the one company that will concentrate on denim and include brands Lee and Wrangler. It will remain in Greensboro, N.C., where VF is located. The second company, to retain the VF Corp. name, will focus on activewear and footwear and be headquartered in Denver. The North Face, an outdoor activewear maker, was founded in San Francisco in 1966 as a climbing equipment store. It is based in Alameda, along with VF’s  Global Innovation Center  for technical fabrics and JanSport, a maker of bags and backpacks. Both businesses will move to Denver by 2020, a company spokeswoman said. VF expects 6 to 8 percent revenue growth in its outdoor business this fiscal year and 13 to 14 percent growth in its active division. Revenue in denim is expected to be flat, the company said last month.