Jan 17, 2023
The Weekly January 17, 2023
Find out what’s happening in the world of business this week
Welcome to the Weekly Scan. Here’s what we’re following for the week of January 17, 2023.
The clock is ticking. The Treasury Secretary Janet Yellen issued a letter to Congress on Friday saying that the U.S. is expected to hit the debt statutory limit on January 19, 2023. Once the U.S. hits that limit, the Treasury will take “certain extraordinary measures to prevent the United States from defaulting on its obligations.” Yellen said that those measures should last until June, but she called on Congress to take action and raise the debt ceiling as quickly as possible.
Cook takes a cut. Apple CEO Tim Cook will take a pay cut this year, according to a filing from the company. For 2023, Cook’s compensation is expected to total $49 million, 40% lower than last year’s target number. Apple’s board reportedly made the decision to reduce Cook’s pay after receiving feedback from both shareholders and Cook. The median compensation for CEOs of the largest companies was $14.7 million as of 2021. Apple’s performance has remained strong as the larger tech industry struggles. The iPhone maker’s third-quarter sales totaled $90 billion, an 8% increase year-over-year.
Sticker shock. Electric vehicle maker Tesla is slashing prices on its Model 3 sedan and Model Y SUV in the U.S. and parts of Europe. Prices on those vehicles will reportedly fall between 6% and 20%. The all-wheel drive Model 3 in the U.S. will now cost $53,990, a 14% drop from the previous $62,990 price. Meanwhile, the price of the Model Y in the U.S. will be cut by 20% from $65,990 to $52,990. Tesla is cutting prices in the hopes of stoking demand for their cars.
Sizzling numbers. Fast food chain Wendy’s delivered promising preliminary fourth-quarter results last week. Revenue for the quarter is predicted to total $536.5 million, compared to $473.2 million generated during the same quarter last year. The board of directors at Wendy’s increased dividends to $0.25 per share for shareholders and approved a $500 million share-repurchase authorization. In response to the reports, shares in Wendy’s increased by 5% on Friday.