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Trump Administration Targets Tech Firms as It Cuts More Contracts
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Good morning, CFOs. The Trump administration’s spending review shifts to tech firms; our list of highest-paid CEOs; plus, how Europe is losing the global tech race.
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Dell is among 10 technology contractors from which the government is seeking cuts. PHOTO: BRIDGET BENNETT/BLOOMBERG NEWS
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The government’s monthslong quest to wring savings from federal contractors is widening beyond consulting firms and entering a new phase focused on tech companies.
The Trump administration is moving its spending review beyond consulting firms, such as Accenture and Deloitte, to now scrutinize contracts at a collection of companies providing sometimes obscure technology services to federal agencies.
The General Services Administration on Wednesday sent a letter to 10 technology providers, including Dell and the IT firm CDW, asking executives to justify their work and find areas to cut. The letter is aimed at companies known as value-added resellers, who often piece together different technology products and services for the government. The U.S. spends $82 billion annually on IT products and services, and complex procurement processes have led to “excessive markups and increased costs to the taxpayer,” the letter notes. “This must change.”
The letter, a copy of which was viewed by The Wall Street Journal, was sent by Josh Gruenbaum, commissioner of GSA’s Federal Acquisition Service, who is overseeing the review of federal contractors. Responses by the companies are due June 11.
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Content from our sponsor: Deloitte
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Lincoln Financial’s CFO on Rebuilding for the Long Term
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CFO Christopher Neczypor discusses the strategic decisions to rebuild the finance function that have helped to put Lincoln Financial on a path of greater stability and renewed growth opportunities. Read More
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Campbell’s kicks off the week, reporting results on Monday, followed by CrowdStrike Holdings, Dollar General and Hewlett Packard Enterprise on Tuesday. Dollar Tree releases earnings on Wednesday, followed by Broadcom and Lululemon Athletica on Thursday.
Monday
Earnings: Campbell’s
The Institute for Supply Management releases its Manufacturing Purchasing Managers’ Index for May.
The Census Bureau reports construction spending data for April.
Tuesday
Earnings: CrowdStrike Holdings, Dollar General, Ferguson Enterprises, Guidewire Software, and Hewlett Packard Enterprise
The Bureau of Labor Statistics releases the Job Openings and Labor Turnover Survey.
Wednesday
Earnings: Dollar Tree, Five Below and PVH
ADP releases its National Employment Report for May.
The ISM releases its Services PMI for May.
The Federal Reserve releases the beige book for the fourth of eight times this year.
Thursday
Earnings: Broadcom, Brown-Forman, Ciena, Docusign, Lululemon Athletica, Rubrik, Samsara and ServiceTitan
The European Central Bank announces its monetary policy decision.
Friday
The BLS releases the jobs report for May.
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What Else Matters to CFOs
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Axon Enterprise CEO Rick Smith PHOTO: MANDEL NGAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
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Rick Smith, who co-founded and runs the maker of Taser stun guns, tops this year’s list of the highest-paid chief executives, with pay of $165 million.
The Axon Enterprise CEO’s pay outstripped that of the leaders of much larger companies, including General Electric’s Larry Culp, Blackstone’s Steve Schwarzman and Apple’s Tim Cook. Smith was the only S&P 500 CEO to receive a pay package above $100 million in 2024.
Overall, CEO pay set another record. Half the chief executives in The Wall Street Journal’s annual analysis made $17.1 million or more last year, up from $15.8 million for the same executives a year earlier, the analysis of pay data from MyLogIQ found.
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“I’m spending an obscene amount of time on this. Businesses can’t function correctly in times of uncertainty.”
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—Haley Pavone, founder of the shoe brand Pashion Footwear, said of her efforts to manage the constant tariff changes on the shoes she manufactures in China.
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Dentsply Sirona, the Charlotte, N.C.-based dental supplies maker, said Matthew Garth has been appointed executive vice president and CFO, effective May 30. Garth brings nearly 30 years of proven financial management expertise to Dentsply Sirona, with a focus on driving value creation. He most recently served as CFO and chief administrative officer of Scotts Miracle-Gro. Prior, Garth held numerous financial leadership roles at large, multinational companies, including Minerals Technology and Alcoa.
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Content From Our Sponsor: DELOITTE
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Reimagining CHRO competencies for strategic growth
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The chief human resources officer role is changing. What new skills should be considered for the evolving CHRO job description, and how can organizations help leaders develop them? Explore here.
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The Wall Street Journal's CFO Journal offers corporate leaders and professionals CFO analysis, advice and commentary to make informed decisions. We cover topics including corporate tax, accounting, regulation, capital markets, management and strategy.
Follow us on X @WSJCFO. The WSJ CFO Journal Team comprises reporters Kristin Broughton, Mark Maurer and Jennifer Williams, and Bureau Chief Walden Siew.
You can reach us by replying to any newsletter, or email Walden at walden.siew@wsj.com.
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