How would you approach this cow-orker situation?

Not to be snarky, but I think you might need to make up your mind - any possible agreements D has with the boss are affecting the other staff, so either what your co-worker is doing is your business, or it isn’t. If it isn’t, this whole thread is pointless. If it is, it’s time to work on fixing it, finding a new job, or finding a way to not let it bother you.