mr. simon's question of the tool that could have a discriminatory component. >> i want to add in there, thank you, matt, to add to what the district attorney is saying. we are currently evaluating our instrument and the half of dozen factors includes a current charge, felony, and the unemployed, drug abuse and having an opinion case. which i think is perhaps much different than say 10 years ago. and we are validating this information now in terms of comparing it to the mounds of data we have, if anything, any volunteer researchers out there. who want -- it really requires a lot of work and scrutiny. but i think it echoes what the district attorney is saying. we are mindful of the jails have been disproportionately african-american, hispanic, we are mindful the fact it's been really poor folks we have been dealing with. and it's obviously that our basis, our history is coming from the social service side. but i want to reiterate that those are the factors that the risk assessment tool is starting to look at and zeroing in on pretrial release. >> professor simon, historically ini in california

mr. simone? >> yeah. i've asked a lot of ex mayors, politicians, why didn't you do anything about these pension costs? and they point out you have to grandfather current people in, and the benefits wouldn't show up for 10 years, 20 years. so nobody got around to doing anything about it. what the court has to rule on here, federal bankruptcy law usually trumps state law and that may be the case. >> so that's where you might see a break on the pensions where they can break that contract. >> a very good chance. >> here's what's astounding, the entire state of california actually is bringing in $11 billion more in revenues than they did during the crisis. so they have more revenue, and yet spending on the universities is down. k-12 spending is flat. you know what's higher? health care benefits for employees and retirees, pension benefits for retirees. i mean, it's crowding out everything. we're starting with stockton, right, mr. standrif? this is going to spread throughout the entire state. what are they goin

mr. johnson lost? >> oh, simon shareholders are certainly not the only ones pays the price, while shares have lost 51% during johnson's 17 months at ceo, it's cost him dearly as well. with the help of executive compensation data firm, during his time at j.c. penney, the total take hoff cash, 2.1 million, the total other comp nearly 402,000, total value, he holds outright, about 14.2 million, making his total take-home pay in 2011 and 2012, 16.7 million, but simon, then there's the 50 million in warrants that johnson bought, with a strike price of 29.92, that cannot be exercised until 2017. currently very out of the money, so assuming that no value is realized on those warrants, johnson effectively lost 33.3 million in his time as ceo. we do know that the interim ceo, mr. mike ullman will be making $1 million as his base pay. tyler, back to you. >> court, thank you very much. what does the returns ceo, mr. ullman, the million dollar a year man have to do in the next 100 days to fix j.c. penney? the timer is ticking.

joining me for the remainder of the program is my great pal mark simone, talk show host. mr.ordell, welcome. why is this necessary? why could there be plans ahead? why couldn't the faa just kept esht people going? >> well, thanks for having me on, larry. well, there is clearly something wrong when the dod and faa knew about the sequestration two years and waited until the last minute, literally last week to brief the airline itself orally that there would be cuts in capacity as a result of cuts in headcount in the atc and inspectors and another personnel. these personnel, by the way, are considered, historically, they consider essential employees. they have never been cut in the past. so why now and why at such a late component? >> that's the thing, this idea of essential employees. i have been through shutdowns when i worked for reagan. you have essential and nonessential. controllers are essential. people say to me the faa in general has a larger work force today than it did last year and the year before. so they didn't to cut the controllers out. they had other places they

mr. mcgregor. it's simon hobbs. if you look at apple, innovation is key.you, innovation is key. qualcomm racing against intel and we kind of know the story. in that environment, how do you feel about the decision that was made with apple to have such a very big buyback to use cash equivalent to 13% of your equity to buy back stock. is that the type of thing that you guys tend to like to do if you want innovative space or do you feel pushed into it because of where the market is? your stock in particular hasn't done very well over the last year. >> broadcom's innovation is our lifeblood. so we look at cash. we obviously want to run the business, but our primary use of cash is to acquire new technologies and new teams that help us drive forward and we drive through dividends and they're our uses of cash through broadcom. >> do you feel the environment in which you operate the strains of being ceo are different now that you have to satisfy an equity market that is very focused on some sort of dividend return. >> it's a challenge. you have to satisfy your cust

simon is a bull. stephanie is bearish. says it's time to take profits. buck 30's on the clock. mr.bake us a cake. >> first of all, why big pharma? by 2025, over 60%, sorry, over 30% of the -- wells fargo -- thank you. taking the right drugs this morning. lovely 3.1% dividend. great drugs in the pipeline. just anouned a corroboration with merck on not pep titans b, but the blood thinning drug. we've told you about the new -- defensive stocks have done very, very well. there's been talk about potentially breaking the company doup the road. spin off a little bit on the history. >> since we -- and the gavel's going to come down, stephanie's going to start making her case. >> 13.5 times estimates. this is for 4% earnings growth this year at best. it's up 20% year to date. up 26% in the last 12 months. i think the pipeline you're talking about is very interesting. plus, the lipitor patent issue is still a problem for the company and they're expanding into the emerging markets, which is going to hurt margin. i think you can get a better price for the stock. >> that's why the market contin

mr. upton and i am told it will be focused on the fundamental value at microsoft. simonr, you mentioned we got earnings from microsoft last week that were better than many had anticipated and so the stock did, in fact, rally on an otherwise lackluster days. pc sales seemed to be falling off a cliff and not to mention the -- not particularly great reception for that product, but there's a lot of other value there in the view of valueact that can be focused on and used as a pathway to future growth from microsoft that doesn't involve windows. we'll get more on that, but certainly a significant development for a company that has had its share of shareholders trying to raise a ruckus, but at the end saying it's not worth it and we're not going get anywhere and there isn't necessarily that much we can do and we have seen active investors with significant positions nonetheless in very large companies that have had very big reputations who are able to galvanize a shareholder base and we'll see if that happens here and valueact for its part perhaps not as well known as a like of

simon was saying a lot more with the exclusive mcdonald's interview. what do you have coming up for us? >> we have to have mandy on the show mr often.back a lot more with the ceo of mcdonald's. we got him to comment on a hamburger from mcdonald's that somebody saved for 14 years. hear what he says about the freshness when "squawk on the street" continues. >>> we're looking at a live shot now of the house as it prepares to vote to end the furloughs that have so disrupted airline travel in the country. you'll be aware that last night in the senate legislation passed to transport $350 million after dark without even a roll call when many members of the senate were actually away for pa week's holiday. that's not the case in the house. they are working and should imminently push that through. now the question is how rapidly can the air traffic controllers be put back to work? we'll come back to that within the next 60 minutes of "squawk on the street." time for the road map. amazon holding after first quarter last night. they are spending huge amounts of money attempting to boost its business. cf1 oss. coming to an end. and we are live t