
The paper is holding an advertisers party and Kate tells Mike that he has to go to it. He never has done and tells her that he never will. He goes to their boss Max to get out of going but this backfires when she flirts with Max to get him to agree with her instead.
When Kate accepts a job offer that's just too good to pass up, she becomes the first female managing editor of the New York Sun—and she's now Mike's boss as well.
Leo, the head of business affairs and known as the Angel of Death, comes down to tell Kate to cut her operating costs by 5%. This is because of increased charges from the papers insurance company, caused by the number of lawsuits filed against the contents of Mike's columns. She works out that the only way she will be able to do this is to fire someone.