September 2025

trendline@thetrendline.com (Trendline) — Wed, 17 Sep 2025 12:00:00 GMT

There’s a lot happening at the intersection of business, policy, and risk. In September's Trendline Report, we highlight how the DOJ is ramping up scrutiny of corporate DEI programs, issuing Civil Investigative Demands to federal contractors and grant recipients as part of a new civil rights enforcement push. At the same time, federal agencies have unveiled a sweeping new workforce strategy, while top employers are teaming up to close the skilled trades gap.

We’re also tracking bold moves by Texas to challenge Delaware’s grip on corporate law, former President Trump’s renewed call to end quarterly financial reporting—a shift that could ease compliance burdens but raise transparency concerns—and the growing risks to succession planning tied to the executive talent shortage. New data also reveals a persistent gender gap in leadership among newly public companies.

Plus, we cover a major antitrust ruling against Google and highlight Trendline Talk's latest episode unpacking what a recent Supreme Court decision could mean for corporate strategy moving forward.

Enforcement Alert

DOJ Targets DEI Practices with Civil Investigative Demands

The Department of Justice (DOJ) has begun issuing Civil Investigative Demands (CIDs) to federal contractors and grant recipients, seeking information about their Diversity, Equity, and Inclusion (DEI) initiatives. DOJ appears to be reviewing a wide range of organizations from publicly traded companies and nonprofits to universities with large endowments focusing on DEI programs that may conflict with anti-discrimination laws. Examples under scrutiny include targeted scholarships, recruitment practices, exclusive training sessions, and policies that could stereotype or disadvantage specific groups.

This action is part of the DOJ’s Civil Rights Fraud Initiative, created under Executive Order 14173, which authorizes enhanced False Claims Act (FCA) enforcement against recipients of federal funds that may violate civil rights laws in connection with DEI practices.

CIDs allow the DOJ to compel production of documents, electronic data, and written responses before litigation is initiated. Violations under the FCA can carry significant penalties, including treble damages, fines per claim, debarment from federal contracting, reputational risk, and civil litigation.

Workforce

Companies Team Up to Bridge the Skilled Trades Gap

Several of the nation’s largest employers are collaborating through the Business Roundtable to address the growing skilled trades workforce crisis. Led by the CEOs of Carrier and Lowe’s, the initiative focuses on trades in industtrial and manufacturing, construction and building, maintenance and repair, and energy. The gap is striking: for every 20 job openings in the skilled trades, only one new worker enters the field. The initiative seeks to reverse this trend by fostering employer collaboration even among competitors to develop and scale solutions.

Actions are already underway: Lowe’s has committed $43 million to support skilled trades, while Carrier plans to hire 1,000 service technicians and train over 100,000 professionals, using virtual and augmented reality to scale programs efficiently.

Federal Agencies Launch New Workforce Strategy

In last month's report we shared the joint effort by the Departments of Labor, Commerce, and Education launching a coordinated federal plan to modernize workforce development and support economic growth. Since then, the agencies outlined it's priorities in a white paper, “America’s Talent Strategy: Equipping American Workers for the Golden Age,”

The strategy is focused on five priorities: aligning training with employer needs, expanding work-based learning, enhancing worker mobility, streamlining programs for better access, and fostering innovation through AI literacy and rapid reskilling. These efforts aim to equip American workers with the skills needed to adapt and thrive in a rapidly changing economy.

Corporate Governance

President Trump Seeks to End Quarterly Reporting Requirements

President Trump is once again urging the SEC to eliminate mandatory quarterly financial reporting for publicly traded companies, urging the SEC to allow companies to report on a semi-annual basis instead. He argues the change would reduce costs, cut regulatory burdens, and shift corporate focus toward long‐term strategy rather than short‐term pressure from markets. A shift to semi-annual reporting could help redirect corporate focus toward long-term goals and investments, potentially benefiting both businesses and their broader stakeholders. The proposal also raises concerns about diminished investor protections, delayed transparency around material financial or legal developments, and likely resistance from institutional investors.

Texas Challenges Delaware’s Corporate Dominance

Delaware has been the go-to state for corporations, but Texas is now vying for that spot. New laws recently passed by the Texas Legislature allow companies to:

Block most shareholder lawsuits by requiring a 3% ownership threshold
Limit shareholder proposals to only the largest investors
Impose disclosure requirements on proxy advisory firms making recommendations related to diversity, equity, and inclusion (DEI) and environmental, social, and governance (ESG) matters.

If Texas gains traction, it could chip away at Delaware’s dominance — shifting how and where shareholder disputes, governance battles, and key corporate legal decisions are handled.

However, these laws are not without controversy. In addition to limiting shareholder rights, they also raise concerns about potential violations of the First Amendment. Specifically, Texas’s law requiring proxy firms to disclose whether DEI or ESG considerations influenced their recommendations is being challenged in federal court by two major proxy advisory firms.

Earlier this month, a Trump-appointed federal judge issued preliminary injunctions blocking enforcement of the law — Texas Senate Bill 2337 — while the case continues on the merits.

Employers Face Rising Risks as Executive Talent Gap Widens

Employers are facing increasing operational risks as the shortage of executive talent grows across industries. A recent report highlights that the gap between open leadership roles and qualified candidates is driving higher turnover costs, slower decision-making, and strategic uncertainty. Organizations that struggle to fill these positions risk disruptions in succession planning and long-term continuity.

This trend reflects broader labor market pressures, including demographic shifts, evolving worker expectations, and intense competition for skilled leaders. Companies are being urged to enhance leadership development, strengthen succession planning, and rethink recruitment strategies to maintain stability and reduce risk.

IPO Surge Highlights Persistent Gender Gap in Leadership

As IPO activity rebounds, women remain underrepresented in leadership. An analysis of 61 companies that went public in early August found that nearly 88% had one or no women on their boards, and 93% had one or no women executives. Overall, women made up just 12% of directors and 11% of executives.

Damion Rallis of Free Float Analytics noted that this trend is most pronounced in tech, where newly public companies are far less diverse than their established peers; women held roughly 30% of board seats among Russell 3000 firms in early 2025. Contributing factors include the rollback of diversity requirements by major financial institutions and recent court decisions weakening board diversity mandates.

The data highlights a concerning backslide in gender diversity as public listings accelerate, raising questions about equity in who benefits from the current IPO market.

Technology

Court Ruling Seeks to Level the Playing Field in the Tech Sector

A recent U.S. court ruling requires Google to share certain search data with competitors, aiming to foster greater competition in the online search and generative AI sectors. While the judge found that Google holds an illegal monopoly, the decision stops short of ordering structural changes, allowing the company to retain control over its Chrome browser and Android operating system.

The ruling is seen as a modest step toward enhancing market competition, though experts note that significant barriers remain for challengers seeking to displace Google’s dominant position. Google has indicated plans to appeal the decision, which could delay its implementation for several years.

Trendline Updates

Trendline Talks: The Supreme Court Ruling Reshaping Business Strategy

In the first episode of Trendline Talks, Jonay Holkins, Founder and Principal of Trendline Strategies, explains the Supreme Court’s decision in Trump v. CASA and how it might influence business decisions and litigation strategy. Follow @TrendlineStrategies on YouTube and Instagram to catch the latest.

Upcoming Events

Here are the events we are watching this fall:

September 2025

September 18: The American Enterprise Institute's Investment Heroes 2025: The Shape of the AI-Enabled Economy (Hybrid, Washington, DC)
September 21 - 24 - 2025 Concordia Annual Summit (New York, NY)

October 2025

October 12 -15: NACD Directors Summit 2025 (Washington, DC)
October 20-21: Aspen Ideas: Economy (Newark, NJ)
October 26-29: SHRM BLUEPRINT 2025 (Louisville, KY)

November 2025

October 4-6: The Milken Institute Future of Health Summit (Washington, DC)

Trendline Strategies blog

September 2025

Enforcement Alert

DOJ Targets DEI Practices with Civil Investigative Demands

Workforce

Companies Team Up to Bridge the Skilled Trades Gap

Federal Agencies Launch New Workforce Strategy

Corporate Governance

President Trump Seeks to End Quarterly Reporting Requirements

Texas Challenges Delaware’s Corporate Dominance

Employers Face Rising Risks as Executive Talent Gap Widens

IPO Surge Highlights Persistent Gender Gap in Leadership

Technology

Court Ruling Seeks to Level the Playing Field in the Tech Sector

Trendline Updates

Trendline Talks: The Supreme Court Ruling Reshaping Business Strategy

Upcoming Events