Markus Andrews

A sign is posted in front of Workday headquarters on Feb. 6, 2025 in Pleasanton, California.
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Company: Workday (WDAY)
Business: Workday is a provider of an artificial intelligence platform to help organizations manage their people, money and agents. The company provides over 11,000 organizations with cloud solutions powered by AI to help solve business challenges, including supporting and empowering their workforce, managing their finances and spending in an ever-changing environment, and planning for the unexpected. It offers financial management, spend management, human capital management, planning, and analytics applications. The company sells its solutions worldwide primarily through direct sales. It also offers professional services, both directly and through its Workday Services Partners, to help customers deploy its solutions. It offers businesses flexible solutions to help them adapt to their industry-specific needs and respond to change. It serves various industries, including professional and business services, financial services, healthcare, education, government and others.
Stock Market Value: $58.48 billion ($219.01 per share)

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Workday shares year to date

Activist: Elliott Investment Management

Ownership: ~3.4%
Average Cost: n/a
Activist Commentary: Elliott is a multistrategy investment firm that manages about $76.1 billion in assets (as of June 30) and is one of the oldest firms of its type under continuous management. Known for its extensive due diligence and resources, Elliott regularly follows companies for years before making an investment. Elliott is the most active of activist investors, engaging with companies across industries and multiple geographies.
What’s happening
Elliott has taken a more than $2 billion position in Workday and expressed its support for the company’s management team.
Behind the scenes
Workday is a cloud-based enterprise software company that provides HR solutions for human capital and financial management. Its human capital platform enables companies to manage workforce and HR processes, while the financials platform supports streamlining financial operations such as accounts payable, procurement and accounting. While the HR software sector is highly competitive, Workday is a dominant player, used by over 11,000 organizations and more than 60% of Fortune 500 companies. Additionally, this is a very sticky business model with a 98% customer retention rate and steady mid-teens revenue growth. Despite this strong backdrop, Workday has significantly underperformed its closest peer group (ServiceNow, SAP and Salesforce) by an average of 13.61, 69.58, and 49.87 percentage points over the past 1-, 3- and 5-year periods, respectively.

Since going public 13 years ago, Workday has embraced a growth at all costs mentality, which has been highly effective, allowing them to grow their revenue base from under $300 million pre-IPO to almost $9 billion now.
The problem with this strategy today is that Workday is now facing the law of large numbers — with such a large revenue base sustaining high growth becomes increasingly difficult. Moreover, despite this hyper growth, Workday has never really generated significant profit and investors have been losing patience. However, the company has recently made a huge change that is the impetus for a plan that should drive tremendous shareholder value — after being led by co-founder Aneel Bhusri since inception, Carl Eschenbach became its full-time CEO in February 2024.
This is not meant to denigrate Bhusri — quite the opposite. Bhusri is a rare visionary who did the hardest part already — building a company from zero to $58 billion. The next stage, efficiently operating a public company is often a different skill set that most founders, particularly one as young as Bhusri, do not recognize should be done by someone else. He deserves a lot of credit for handing over the day-to-day reins and moving up to executive chair. This will allow the company to make a critical fresh start in its strategic direction. And that they just did.
On Tuesday, Workday announced a multiyear plan at its financial analyst day that included a number of value-focused initiatives, such as a $5 billion share repurchase program, cost prevention measures expected to deliver nearly 1,000 basis points of GAAP margin expansion over the next couple of years, and a $15 per share free cash flow target by fiscal year 2028.
Elliott announced on Wednesday that they have taken a more than $2 billion position in Workday and expressed their support of the company’s management team. Many people think that Elliott and “amicable” go together as well as “deafening silence” or “virtual reality,” but Elliott has had significant success in amicable engagements and this will be another example.
Elliott does deep research on all companies and industries they invest in and were likely watching Workday when Eschenbach became CEO, piquing their interest even more. Elliott’s relationship with Eschenbach stems back over a decade to his prior role as president and COO of VMware, where Elliott was a very active shareholder. So, it is no coincidence that Elliott’s decision to make their investment public comes the day after Workday announced their new multiyear plan. Elliott would never take such a significant position in a controlled company (via dual class shares) unless they have had extensive conversations with management and know they were on the same page.
Accordingly, while the board and management should get the credit for this new plan, we can’t help but see Elliott’s fingerprints on it to some extent. Moreover, this will not be a difficult plan to implement.
With more than $8 billion in net cash, Workday has more than enough capital to fund buybacks while retaining an M&A war chest. And as the company is still growing at a healthy clip, margin expansion can be accomplished without cost cutting, but through cost maintenance. Additionally, AI implementation presents a significant opportunity for Workday.
In 2024, the company generated about $150 million in net new AI based revenue — a 200% year over year increase. With many HR functions involving tedious and repetitive processes, Workday is uniquely well positioned to leverage AI to automate its workflows and improve its product offerings.
The company is well aware of this and has already commenced accretive M&A in the space. On Tuesday, Workday announced a $1.1 billion deal to acquire Sana; and last month, the company acquired both Paradox and Flowise.
It is also important to note that a company like Workday that is founder controlled, with Busri holding over 70% voting power through Class B shares, can often be ascribed a governance discount if the market does not believe that the controlling founder will work on behalf of shareholders. A new, unaffiliated body in the C-Suite emboldened by the support of Elliott should go a long way to assuage those concerns.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

The U.S. Department of the Treasury and IRS on Friday issued proposed regulations with more details about President Donald Trump’s “no tax on tips” deduction.
The proposed regulations include eligible occupations, the definition of “qualified tips” and how to claim the tax break.
However, the Treasury plans to share additional guidance when it finalizes the regulations.

Ugur Karakoc | E+ | Getty Images

The U.S. Department of the Treasury and IRS on Friday issued proposed regulations with more details about President Donald Trump’s “no tax on tips” deduction.
Enacted via Trump’s “big beautiful bill” in July, the provision allows certain workers to deduct up to $25,000 in “qualified tips” per year from 2025 through 2028. The tax break on tips phases out, or gets smaller, once modified adjusted gross income exceeds $150,000.

Since the measure applies to current-year earnings, it has sparked questions — including which jobs qualify — from tipped workers and tax professionals.
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In 2023, there were roughly 4 million U.S. workers in tipped occupations, representing 2.5% of all employment, according to estimates from The Budget Lab at Yale University.
Here are some key things to know about the new tax break, according to Treasury officials.

Some tipped ‘SSTBs’ won’t qualify

The Treasury in August released a preliminary list of 68 occupations that “customarily and regularly received tips” as of Dec. 31, 2024, as required by Trump’s legislation.

However, certain jobs, known as so-called “specified service trade or businesses,” or SSTBs, don’t qualify, Treasury officials told reporters on Thursday.
SSTBs include categories like health care, legal, financial services, performing arts and more. Trump’s 2017 tax law outlined the list of SSTBs to limit eligibility for a 20% deduction for certain businesses. 

‘Automatic gratuity’ is not eligible

Treasury officials also confirmed that automatic gratuity won’t count as a qualified tip because the payment isn’t given to workers voluntarily.   
For instance, let’s say you work at a restaurant that requires an 18% fixed gratuity for parties of six or more. Such earnings would not qualify for the tax break.
Treasury officials on a press call Thursday said that the new tax break is complicated and said they will provide further guidance when the regulation is finalized.
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The Fed’s long-awaited rate cut could bring some consumer rates down, which may be good news for borrowers hoping to refinance into lower-cost loans.
But whether to refi existing mortgages, car loans or student debt into lower-rate alternatives generally depends on the type of loan and your financial picture, experts say.

The Federal Reserve announced a long-awaited rate cut on Wednesday.
The move could bring some consumer rates down, which may be good news for borrowers hoping to refinance into lower-cost loans.

“While the broader impact of a rate reduction on consumers’ financial health remains to be fully seen, it could offer some relief from the persistent budgetary pressures driven by inflation,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.
But that relief may take a while to arrive.
Borrowing costs tend to rise quickly when the Fed raises its benchmark interest rate — but fall slowly when it cuts. And certain debts, like mortgages, are influenced more by movements in long-term U.S. Treasury bonds than the Fed’s benchmark interest rate.

It may take a series of rate cuts for borrowing costs to come down noticeably — and for a refi to make sense, according to Stephen Kates, a certified financial planner and financial analyst at Bankrate.
“This isn’t going to change anybody’s life overnight,” Kates said. “For most consumers, [Wednesday’s cut] is a non-event.”

Whether to refinance existing loans into lower-rate alternatives generally depends on the type of loan and your financial picture, experts say.
Here’s what you need to know.

When to refinance your mortgage

Since 2021, the share of outstanding mortgages with rates above 6% has more than doubled, according to Bob Schwartz, senior economist at Oxford Economics.
Mortgage rates have come down significantly from their recent peak at over 7% back in January, and that’s causing a run on refinance demand.
“We have already experienced lower mortgage rates the last two weeks, giving many homeowners who purchased a home in the past three years, the opportunity to refinance,” said John Hummel, head of retail home lending at U.S. Bank.

Refinancing any debt generally makes most sense when there’s a spread of at least 1 percentage point between your current interest rate and the new refi rate, said Bankrate’s Kates — for example, if a refi can reduce your mortgage rate to 6% from 7%.
“The bigger that spread is, the better it’s going to be,” Kates said.
For example, homeowners who have a $400,000 fixed mortgage with a 30-year term and 7% interest rate might pay about $2,661 a month. (This includes principal and interest, but excludes factors like insurance and property tax).
The same mortgage with a 6.25% interest rate would reduce their payment by $198 per month, to $2,463. A 5.75% interest rate would drop it by another $129, to $2,334 a month.
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However, refinancing a mortgage too frequently — say, every time interest rates drop 0.25 percentage points — is generally not a good idea, Kates said.
That’s due to closing costs and other fees tacked on to each new mortgage, he said. Repeatedly incurring those costs would erode the financial benefit of refinancing.
“You’re funding your mortgage lender’s kid’s financial education probably more than you’re benefiting yourself,” Kates said.
Consumers should pay attention to the APR — or, annual percentage rate — on a loan, which is inclusive of interest and all fees, Kates said.

When to refinance your auto loan

Car loans are a similar story, since the APR can make a big difference in your monthly payment.
If you financed a car over the past two to three years and pay 7% or more in interest on that loan, this may be an opportunity to get a lower rate, according to Joseph Yoon, consumer insights analyst at Edmunds. It helps if your credit score has improved since the loan origination, he said. (Generally speaking, the higher your credit score, the better off you are when it comes to getting an auto loan.)

However, if your car loan is from 2019 or 2020, your loan’s APR is likely to be lower than current rates, “which makes refinancing a dubious bet at best,” Yoon said.
“Whether or not it’s a good idea to consider a refinance really depends on your financial situation,” Yoon said.
In every case, “crunch the numbers,” Yoon said — lowering your monthly payment may not be worth carrying a car payment for additional time and ultimately paying more in interest.

When to refinance your student loan

While federal student loan rates are fixed, private loans may have a variable rate, which means as the Fed cuts rates, borrowers with variable-rate private student loans could automatically get a lower interest rate, according to higher education expert Mark Kantrowitz — although any decreases in interest rates will be relatively small.
“A 0.25% decrease in the interest rate might reduce the monthly payment by about a dollar per month per $10,000 borrowed on a 10-year repayment term,” Kantrowitz said.

Eventually, borrowers with fixed-rate private student loans, or even federal loans, may be able to refinance into a less expensive loan if interest rates keep coming down, Kantrowitz said.
In this case, there are no prepayment penalties or transaction fees for federal and private student loans, so borrowers can refinance their loans multiple times if rates continue to fall.
However, refinancing a federal loan into a private student loan is generally not a good idea, experts say. Doing so will forgo “the superior benefits of federal student loans,” Kantrowitz said, such as better deferments and forbearances, income-driven repayment plans and loan forgiveness and discharge options. 
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The New York Department of Taxation and Finance will send refund checks to over 8 million New Yorkers starting at the end of September.
The exact amount paid will depend on the taxpayer’s filing status and their adjusted gross income for the 2023 tax year.

ALBANY, NY – MAY 21: Gov. Kathy Hochul holds a press conference at Common Roots Outpost to announce MIG, a national consultant group, will guide public engagement process for spending $200 million in downtown Albany on Wednesday, May 21, 2025, in Albany, N.Y. (Lori Van Buren/Albany Times Union via Getty Images)
Albany Times Union/hearst Newspapers | Hearst Newspapers | Getty Images

There’s no need to apply or sign up for the payment. The refund checks will be mailed directly to eligible New Yorkers over several weeks.

You may receive your check “sooner or later than your neighbors,” as the payments are not based on zip codes or regions, according to the agency.

Why New York is sending rebate checks

The rebate checks are possible because higher prices led to higher sales taxes, according to Jared Walczak, vice president of state projects at the Tax Foundation. The state of New York generated more revenue than it otherwise would have, he said.
“This rebate check is a response to that,” said Walczak.

However, it’s not unusual to see state, local and federal governments provide specialized rebate and stimulus checks to taxpayers, he said.
Earlier this year, Sen. Josh Hawley, R-Mo., proposed the American Workers Rebate Act in July, which aims to send tariff rebate checks to households. The bill aims to provide “at least” $600 per adult and dependent child, or $2,400 for a family of four. The legislation has not passed yet. As of late July, it has been referred to the Committee on Finance.
For now, New York seems to be the only state that has recently announced inflation-related rebate payments, said Walczak.
“It doesn’t appear as if any [states] are looking at New York right now and choosing to follow,” he said.

‘A smart move for your future’

If you do qualify for a stimulus check, it’s smart to use the additional cash wisely. 
“The first priority is shoring up the basics,” said certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth, a wealth management firm in New York City. 

For instance, use the cash to “beef up” your emergency fund so you’re prepared for unexpected expenses, said Boneparth, a member of the CNBC Financial Advisor Council. 
If you have high-interest debt, such as an outstanding credit card balance, consider using the refund to pay down the debt that’s “eating away at your budget,” he said. 
But if you have those fundamental steps taken care of, investing the cash “could be a smart move for your future,” Boneparth said. More

Nearly two dozen attorneys general and more than 250 organizations are opposing the Trump-era proposed regulation that could narrow eligibility for Public Service Loan Forgiveness.
“[T]he Trump Administration is attempting to hold this debt relief tool hostage from employers that engage in actions the President does not like,” said California Attorney General Rob Bonta in a statement.

California Attorney General Rob Bonta speaks at a press conference in February 2024.

Nearly two dozen attorneys general, and a wide range of consumer groups and advocates, have registered their opposition to the Trump administration’s proposed regulation that could narrow eligibility for a popular student loan forgiveness program for government and nonprofit workers.
The 22 attorneys general registered their criticism in a letter to Education Department Secretary Linda McMahon on Wednesday. On Thursday, 254 organizations — including the NAACP, The Cancer Network and Florida Justice Institute, among others — also signed a letter condemning the Trump administration’s proposed PSLF rule.

“Nationwide, millions of Americans took out student loans to become public servants with the promise of debt relief down the line, and now, the Trump Administration is attempting to hold this debt relief tool hostage from employers that engage in actions the President does not like,” California Attorney General Rob Bonta said in a statement.
The Public Service Loan Forgiveness program, which President George W. Bush signed into law in 2007, allows many not-for-profit and government employees to have their federal student loans canceled after 10 years of payments.
President Donald Trump signed an executive order in March that said borrowers employed by organizations that do work involving “illegal immigration, human smuggling, child trafficking, pervasive damage to public property and disruption of the public order” will “not be eligible” for PSLF.
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In August, the U.S. Department of Education issued a notice of proposed rulemaking on its regulations to halt loan forgiveness under PSLF for certain employees based on that executive order. In its proposed rule, the Education Department said the changes “may delay or prevent forgiveness for a subset of borrowers.”

People were given until Sept. 17 to comment on the proposed rules at Regulations.gov, and the attorneys general submitted their letter to McMahon on that deadline.
The U.S. Department of Education did not immediately respond to a request for comment.
The AGs’ letter was signed by attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington and Wisconsin.
The consumer groups’ letter comes from a range of organizations “representing millions of students, borrowers, healthcare workers, government workers, educators, people of color, veterans, women, immigrants, people with disabilities, and consumers crushed under the weight of student loan debt,” it notes.
The rule, they wrote, “is blatantly unconstitutional, illegal, and harmful to millions of borrowers across the country.”

Concern over who will be excluded

In their letter, the attorneys general wrote that the vagueness of the regulatory language will lead to uncertainty regarding which employers are eligible for PSLF, and grant the Trump administration broad authority to exclude programs it doesn’t approve of.
“If allowed to go into effect, ED could deem the State of California or specific California state agencies ineligible for PSLF, denying loan relief to state employees, and undercutting the state’s ability to recruit and retain skilled employees,” according to a press release from Bonta’s office.
Trump’s executive orders have targeted immigrants, transgender and nonbinary people, and those who work to increase diversity across the private and public sector. Many nonprofits work in these spaces, providing legal support or doing advocacy and education work.
“Borrowers that work for those organizations are concerned,” Betsy Mayotte, president of The Institute of Student Loan Advisors, told CNBC in March.

Proposed rule is ‘unlawful,’ attorneys general say

The U.S Department of Education is trying to create “unlawful exceptions to Congress’s clear statutory command,” the attorneys general wrote in their letter.
When the program was created, Congress specified that PSLF would be available to any eligible borrower who has worked in government or a 501(c)(3) nonprofit for a decade, they wrote.

Consumer advocates have made the same argument, and said that legal challenges to the rule were likely.
“The PSLF program, which was created by Congress almost 20 years ago, does not permit the administration to pick and choose which non-profits should qualify,” Jessica Thompson, senior vice president of The Institute for College Access & Success, told CNBC when Trump first signed the executive order on PSLF.

What student loan borrowers need to know

Experts say borrowers’ best option right now is to stay the course, assuming their current employer has previously been considered qualifying for PSLF.
That’s because it remains unclear exactly which organizations will no longer be considered a qualifying employer for PSLF under the Trump’s administration’s regulations. Some experts also say the changes to eligibility could be challenged in court.

Any overhaul of the PSLF program can’t be retroactive, Mayotte said.
That means that if you are currently working for or previously worked for an organization that the Trump administration later excludes from the program, you’ll still get credit for that time — at least up until the rule changes go into effect.

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