BET's Debra Lee Considering a Fund for Women, People of Color in Tech
Former BET Chief Executive Debra Lee said on Wednesday said she's looking into creating a fund for women and people of color in tech, inspired by experiences at her annual gathering of powerful women - Leading Women Defined.
Lee, speaking at the eighth-annual Upfront Summit, said she found fewer people who looked like her as she climbed the ranks at the Viacom-run network. And that led Lee to create the conference which draws power players like Michelle Obama and Hillary Clinton as keynote speakers.
Debra Lee speaks at the Upfront Summit in Pasadena on January 29, 2020.Courtesy AirCam
Over her decades long career, Lee often found herself the only women of color in board rooms and in the c-suite – a trend that's slowly changing. She recalled walking into a gathering of the National Cable Television board where all the male members were socializing with each other, leaving the female members boxed out.
"For a company to have a board now with no women, no people of color, they should be truly embarrassed," she said at the Upfront Summit. "If you have diverse people on your board, they are going to hold you accountable."
Lee, who is working to get more women on boards as part of her work with Time's Up, sees many signs of change at companies. What she wants to see is more female chief executives. Meanwhile, a recent California law mandates that companies headquartered in the state have women on their board. "We have to hold these companies' feet to the fire," she said.
Lee, who was a member of Twitter's board and sat on the nominating committee, found herself firing off the name of CEOs when the social media giant was looking for black board nominees. The other board members were having a hard time coming up with candidates.
"I love the fact that women and men are discussing their salaries," she said "Women have to know their worth and not be afraid to ask for it. That's the only way you create wealth. That should be the norm with women and people of color."
The Upfront Summit is expected to attract more than 1,200 attendees flocking to the Rose Bowl Jan. 29-30. The invite-only event brings together a diverse mix of entrepreneurs networking with venture players armed with billions of dollars in capital, and headlined by presentations from business leaders including Steve Ballmer, Quibi Chief Executive Meg Whitman, Union Square Ventures' Fred Wilson, and Idealab founder Bill Gross.
Links to the conference agenda and the livestream can be found here.
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University of California, Los Angeles economists say the glass is half full for the U.S. economy — at least for now.
The quarterly UCLA Anderson Forecast released Wednesday wanly touted a "better-than-expected outcome" for the U.S. economy in the near term, a major upgrade from the last report's forecast of a "depression-like" crisis for the economy. But the new, relatively optimistic assessment is highly reliant on how the pandemic progresses, the authors cautioned.
California's economy is broadly expected to mimic the nation's so long as pandemic-related shutdowns dissipate in 2021. Still, the optimistic outlook doesn't expect a full recovery for California until after the end of 2022, when economists forecast state unemployment will remain close to 6%, compared to just under 5% for the U.S. overall.
Part of the reason for this improved forecast is that the economy opened up earlier than anticipated and there were no new shutdowns, despite multiple states experiencing a surge in cases over the summer. Moreover, consumers and businesses adapted quickly to new technologies and remote working, while the Federal Reserve committed to near 0% interest rates until labor market conditions recover. In fact, borrowing rates are at historic lows, below even the levels reached during the Great Recession.
The economic bounce-back was always expected to be big, as temporarily laid-off workers returned to work. Because the economy reopened earlier than USC analysts predicted, recovery numbers, which had been expected in 2021, came instead in the third quarter, leading to "stronger 2020 growth and weaker 2021 growth," the report said.
GDP is expected to grow 0.3% in the fourth quarter with real GDP declining overall to 4.2% for all of 2020, the authors wrote in an essay entitled "The recovery is losing momentum." For context, that's 50% steeper than the decline of 2.8% from the Great Recession in 2008. But those numbers are far better than the annual 8.6% decline forecast in mid-June. The forecast for 2021 is 3.5% growth and 4% growth for 2022.
"That there's more economic activity than we expected that's good news, but it's not something that you'd say we're out of the woods, because we're not," Jerry Nickelsburg, the director of the forecast, told dot.LA. "The economic outlook depends critically on the trajectory of the pandemic and the public health response to it."
Nickelsberg forecasts that it will take the U.S. until the first quarter of 2022 to achieve the same level of economic activity that it saw in the fourth quarter of 2019.
He expects 2020 fourth quarter growth to be relatively weak, with more bankruptcies and layoffs. And winter will put a damper on economic activity in many parts of the country where it has been moved outdoors, Nickelsberg said.
Unemployment isn't expected to reach pre-pandemic rates until late 2024 at the earliest.
And that's with some rather optimistic assumptions, including that there is widespread availability and usage of an effective vaccine in early 2021 or that the pandemic has a relatively mild impact on economic activity in 2021 and 2022. The report also assumes another, more limited federal fiscal stimulus round before the end of 2020.
"None of these assumptions are assured, and if they do not come to pass, our forecast, presented here, is too optimistic," the authors wrote.
Though employment recovery has been fast as workers returned from temporary layoffs, sectors that rely on more human contact have seen a rise in permanent layoffs. In those sectors, employment "won't fully recover until consumers and businesses return to old habits, which won't be for some time, if ever," the forecast said.
But it's on theme that the forecast is a little more uncertain, as Nickelsberg said, "there's a higher probability that we are too optimistic than that we are too pessimistic."
California's leisure and hospitality industry have been hurt by the drop off in international tourism. But home sales have bounced back after a precipitous first-quarter drop.
"There is heightened uncertainty now, uncertainty about the pandemic, uncertainty about fiscal policy, another stimulus package or not out of Washington, uncertainty about the election, there's lots of uncertainty in the economy right now," said Nickelseberg.
A Dive into L.A.'s Tech and Gig Economy
The forecast noted that the gig economy in California has been hit harder by the pandemic in terms of overall unemployment.
L.A. County has more than one million gig workers as of 2018 — roughly one gig job for every four traditional jobs — and the numbers are growing faster in this segment than the U.S. overall.
That helps explain why L.A. has seen steeper drops in overall employment during the "pandemic-induced recession," the report states, especially since a greater share of its gig workers are in transportation, arts, entertainment and recreation, which have been hit especially hard.
Many have been buoyed by the unemployment benefits provided by the coronavirus stimulus bill.
That's especially relevant because gig workers tend to make less than their conventional counterparts. Gig workers in the professional, scientific and technical sector in L.A. earn an average of $52,000 annually, compared to their counterparts who earn $142,000.
The forecast examined tech industry jobs, with five large clusters led by the Bay Area and followed by Southern California, then Boston, Seattle, and Manhattan. The report noted that tech jobs increased dramatically in most of those areas from 2005 to 2020, while in Los Angeles there was only a moderate increase of 36,000 tech jobs.
Although L.A. County ranked second out of 20 counties for having the most tech jobs in the U.S., it was 11th on that same list for average pay. Tech workers in L.A. earned an average salary of $142,000, slightly above the national average of $135,000 for the industry. In Santa Clara, tech workers received an average salary of $287,000, while in Manhattan that number is $205,000 and in Seattle $200,000.
Though the tech industry has done well amid the pandemic, the forecast noted that it could be harder to see a near-future increase in tech workers in the Bay Area and New York, with high costs of living, as companies experiment with remote working.
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Gaming is eating the world.
So says a new report issued Tuesday by L.A.-based investment firm MaC Venture Capital.
The report mentions the recent explosion of gaming companies – including Epic Games' $1.78 billion raise that valued it at $17.3 billion, Unity's $1.3 billion IPO that valued the Epic competitor at $13.7 billion and Roblox's $150 million fundraise that valued the kid's gaming "sandbox" at $4 billion — and that was before the pandemic boosted Roblox's user base.
But most of the analysis is devoted to the techniques and tools that gaming has popularized over the years, and that are fast proliferating into areas as diverse as retail, film production, medicine and national defense.
Disney is laying off 28,000 workers at its U.S. theme parks after the pandemic devastated Walt Disney World and kept Anaheim's Disneyland Resort shuttered for six months.
Disney Parks Chairman Josh D'Amaro said Tuesday that 67% of those being laid off from both Disney World and Disneyland are part-time employees.
"As difficult as this decision is today, we believe that the steps we are taking will enable us to emerge a more effective and efficient operation when we return to normal," said D'Amaro in a statement.
Disney World was able to open with a limited capacity in July, but Disneyland has been closed since March. D'Amaro took a jab at Gov. Gavin Newsom suggesting that his hand was forced by California's "unwillingness" to allow for the park to open.
On Tuesday, 19 state legislators pleaded with Newsom following calls from Anaheim's mayor to reopen the Disneyland and theme parks throughout California. They argued that parks can reopen safely but they are left in the dark as to which steps need to be followed for reopening.
The announcing statement also added that they are speaking to unions in order to know what steps are next for union-represented cast members.
Disney's third quarter earnings showed an 85% drop in revenues to $2 billion from the company's parks, experiences and products division compared to the same period last year.
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