Must-Read Money Stories for Monday, March 27

by March 27, 2017
Ride-hailing company Uber suspended its self-driving car program after an accident in Tempe, Arizona, according to Bloomberg. (Image "Uber" by Núcleo Editorial via Flickr, CC license by 2.0.)

Ride-hailing company Uber suspended its self-driving car program after an accident in Tempe, Arizona, according to Bloomberg. (Image “Uber” by Núcleo Editorial via Flickr, CC license by 2.0.)

Uber pauses self-driving program

Still reeling from recent PR nightmares, Uber has suspended its self-driving vehicle program in Arizona and Pittsburg after one of its autonomous cars was involved in a crash in Tempe, Arizona, according to Bloomberg. Police say the no-injury accident was not the fault of Uber’s self-driving car, but rather the driver of another car, who failed to yield. Uber’s autonomous driving pilot program launched in Arizona after being banned in San Francisco in December. The program is also at the center of a lawsuit this year launched by Google’s Alphabet Inc., which claims its self-driving technology was stolen by Uber.

American Airlines invests in China

Already the world’s largest airline, American Airlines Group Inc. is on track to expand its market share even further through ongoing negotiations to buy a large stake in China Southern Airlines Inc., according to Bloomberg. American Airlines declined to comment, but earlier reports from Bloomberg had pegged the deal at $200 million. The Chinese airline told Bloomberg that the discussions, though not binding and still tentative, are over a “possible strategic cooperation.” Such a move would enable American to better compete in the Chinese market following Delta Air Lines Inc.’s minority stake purchase in China Eastern Airlines Corp. in 2015.

Loophole for reporting CEO pay

The CEO of Johnson Controls, Alex Molinaroli, earned roughly $46 million in compensation for the month of September. His annual payout, however, is anybody’s guess. Johnson Controls merged with Tyco International PLC on September 2, and a loophole in Securities and Exchange Commission rules allows the compensation amounts of top executives to go undisclosed before their companies disappear or are rolled into another corporation as a subsidiary. This Wall Street Journal article lists other high-profile mergers where the loophole was utilized and explains why the rule has been justified for accounting purposes.

United takes it to the mat

Social media erupted on Sunday over a Twitter exchange in which United Airlines confirmed and then spent the day explaining why two teenage girls were not allowed to board their domestic flights out of Denver because the spandex yoga pants they were wearing were deemed inappropriate travel attire, according to the New York Times. United spokesman Jonathan Guerin defended the  dress code policy, saying it was applicable only to “pass travelers,” non-revenue United employees and dependents who, “represent” the company. It was a busy day for the airline’s PR team.

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