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    ‘Stay below the radar’: corporate America goes quiet after Trump’s return

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    From vast protests and all-caps social media posts to acrimonious legislative hearings and pugnacious White House statements, Washington has perhaps never been noisier. But since Donald Trump’s return to office, one corner of civil society has been almost eerily quiet.Those leading corporate America rapidly turned down the volume after the president’s re-election. Gone are the days of political and social interventions, highly publicized diversity initiatives and donations to important causes.For months, some of the most powerful firms in the world have nervously navigated a dangerous US political landscape, desperate to avoid the wrath of an administration as volatile as it is vocal.“CEOs like two things. They like consistency and predictability,” said Bill George, former chairman and CEO of Medtronic and serial board director. “They like to know where things are going. No one can figure out where this administration’s really going, because everything is transactional.”View image in fullscreen“Stay below the radar screen,” George has been advising senior executives across the US. “Do not get in a fight with this president.”Industry leaders from David Solomon of Goldman Sachs to Dara Khosrowshahi of Uber extoled the benefits of “Trump accounts” for babies this week. It was the latest example of knee-flexing that began on the patio of Mar-a-Lago in the aftermath of Trump’s victory last November.The genuflections have been backed by big money, with millions of dollars thrown into the president’s inaugural fund by companies and executives. That started to look like chump change before long. Amazon reportedly paid $40m for a documentary about Melania Trump. Apple announced plans to invest $500bn in the US.But those moves do not appear to have bought much favor. The White House accused Amazon of being “hostile and political” following a report (upon which the company later poured cold water) that it would start disclosing the impact of Trump’s tariffs on prices. And the president threatened Apple with vast tariffs.No CEO seemed closer to Trump than Elon Musk, the billionaire industrialist behind Tesla and SpaceX, who gave almost $300m to Republican campaigns last year, and worked in the administration for months. Their explosive fallout, days after Musk’s exit, prompted the president to threaten the cancellation of federal contracts and tax subsidies for Musk’s companies.View image in fullscreenThe pair’s rupture underlined why many executives are struggling to trust the president, according to Paul Argenti, professor of corporate communication at the Tuck School of Business at Dartmouth. “The mercurial nature of this guy kind of just seeps in, and people start to realize they’re dealing with something that’s a bit more difficult.”His advice? “Proceed with extreme caution.”“Loyalty only goes one way with Trump,” said Dan Schwerin, co-founder of Evergreen Strategy Group, and former speechwriter for Hillary Clinton, who has previously worked with firms including Levi Strauss and Patagonia. “This is like doing business with the mafia: you’re not going to win, and you’re not going to be safe.”The standard playbook is clear: “You make a big splashy announcement: the details don’t matter, you don’t have to follow through, but you placate the White House,” said Schwerin. “That maybe buys you a little time and a little goodwill.“But history suggests that Trump will do whatever is best for Trump, and he will turn on you in an instant, if it’s better for him. And that is true for his friends, so it will certainly be true for a company that he has no loyalty to.”Extreme caution has become the name of the game – anything to avoid your company getting drawn into the crosshairs of this administration. But companies can’t just focus on the president: they have shareholders, customers and employees to answer to.View image in fullscreen“You can’t base everything on getting through the next four years,” said George. “Yeah, it’s going to be chaotic. Yes, it’s going to be challenging. But you better hold firm to your purpose and your values.”He pointed to retailer Target, where he served on the board for 12 years. “They were very, very big on differentiating themselves from Walmart, using diversity as the criteria – and particularly being, they called themselves, the most gay-friendly company in town.“And then [Target CEO] Brian Cornell, six days after the inauguration, abandoned all that,” said George. The chain faced a backlash – and boycotts – for abruptly announcing the rollback of diversity, equity and inclusion (DEI) initiatives. Breaking his silence in an email to employees three months later, Cornell claimed: “We are still the Target you know and believe in.”Contrast this with Costco, another retailer, which in January faced a shareholder proposal against DEI efforts from a conservative thinktank. The firm’s board robustly defended its “commitment to an enterprise rooted in respect and inclusion” before the proposal was put to its investors for a vote.“They got a 98% vote to stay the course, to stay true to what they were,” said George. “And their customer base is very conservative. This is not like they have some liberal customer base.”Argenti believes the period of strategic silence by many companies, and knee-flexing to the White House, might be coming to a close following Musk’s messy exit. “We’re at an inflection point,” he said. “There’s going to period where people realize you’re damned if you do and damned if you don’t.”CEOs of companies counting the cost of Trump’s policies are “not going to suffer in silence”, he said. “You can’t win. It’s not like you can be secure in knowing if you follow this strategy, he’ll leave you alone.”View image in fullscreen“We are starting to see the pendulum swing back,” according to Schwerin, who claimed the administration’s erratic execution of tariffs had “opened some people’s eyes” that its policies were bad for business.“I think it’s crucial that we start to see a little more pushback. Better to have a backbone than to just bend the knee.”On controversial issues at the heart of political discourse, however, George does not expect much of a shift from CEOs. “It is radio silence, and I think you’ll see that continuing. There’s not much to be gained from speaking out today.”“Stick to your lane,” he has been counseling executives. “If you’re a banker, you can talk about the economy. If you’re an oil expert … talk to the energy industry. But you can’t speak ex-cathedra to everyone else.”“Only a handful” of business figures are deemed able to stand up and make bold public statements on any issue, according to George, who points to Jamie Dimon, the veteran JPMorgan Chase boss, and Warren Buffett, the longtime head of Berkshire Hathaway.“There are certain people who are really hard to take on. Jamie’s one,” he said. “If you were president of the United States, would you take on Warren Buffett?” More

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      Trump announces $1,000 government-funded accounts for American babies

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      Donald Trump unveiled a federal program Monday providing $1,000 government-funded investment accounts for American babies, getting big time backing from top business leaders who plan to contribute billions more to an initiative tied to “the big beautiful bill”.At a White House roundtable with over a dozen CEOs, including from Uber, Goldman Sachs and Dell Technologies, Trump relayed the details of “Trump accounts” – tax-deferred investment accounts tracking stock market performance for children born between 2025 and 2029.“For every US citizen born after December 31, 2024, before January 1, 2029, the federal government will make a one-time contribution of $1,000 into a tax-deferred account that will track the overall stock market,” Trump said.The accounts will be controlled by guardians and allow additional private contributions up to $5,000 annually. Trump called it “a pro-family initiative that will help millions of Americans harness the strength of our economy to lift up the next generation”.CEOs from major companies including Michael Dell, Dara Khosrowshahi of Uber, David Solomon of Goldman Sachs, and Vladimir Tenev of Robinhood committed billions for employees’ children’s accounts. Trump praised the executives as “really the greatest business minds we have today” who are “committed to contributing millions of dollars to the Trump account”.Mike Johnson, the House speaker, also at the roundtable, championed the program, saying: “It’s a bold, transformative policy that gives every eligible American child a financial head start from day one. Republicans are proud to be the party we always have been. It supports life and families, prosperity and opportunity.”The program passed the House as part of a massive budget bill but faces stiffer Senate Republican resistance over the broader package. The accounts cannot be implemented as a standalone program and depend entirely on passage of what Trump calls the “one big, beautiful bill” that is “among the most important pieces of legislation in our country’s history”, claiming it’s “fully funded through targeted reforms” including welfare changes and a proposed remittance tax.However, the congressional budget office last week found the bill would also add $2.4tn to the national debt over the next decade while cutting Medicaid and food assistance programs. The CBO analysis showed the bill, which passed the House by a single vote and no Democratic support, would leave 10.9 million more Americans without healthcare by 2034.The treasury-funded accounts, previously called “Maga ccounts” resemble existing 529 college plans but with lower contribution limits – leading some financial advisers to say the Trump accounts may not offer the best investment incentives.The move is also not without precedent the United Kingdom operated a similar Child Trust Fund with government seed funding from 2002-2011 before discontinuing the program, while Singapore runs the Baby Bonus Scheme that includes government-matched savings accounts for children.Trump was optimistic about returns, saying beneficiaries would “really be getting a big jump on life, especially if we get a little bit lucky with some of the numbers and the economies into the future”.Johnson warned that failure to pass the legislation would result in “the largest tax increase in American history” and pushed for swift congressional action on what he called “pro-growth legislation” that would “help every single American”. More

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      Many US companies move to pay travel costs for employees seeking abortions

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      Many US companies move to pay travel costs for employees seeking abortionsTech firms and banks, including Bank of America, Goldman Sachs, Citigroup and JPMorgan Chase, add ‘critical healthcare’ package Many US corporate giants have moved swiftly to provide support and financial assistance to employees seeking abortions in states that outlawed the procedure following the US supreme court’s decision on Friday to overturn its landmark Roe v Wade ruling.With potentially millions of women soon looking to cross state lines for the procedure, many employers have added “critical healthcare” packages to employees benefit packages.The measures reflect, in some cases, elevated responsibility that businesses now feel to respond to pressure from investors, customers and employees at a time when corporate values do not conform with the legislatures of states in which they or their employees are based.Many banks and tech firms have announced they will cover travel expenses for US workers in need of abortions as part of their medical benefits. After the reversal was announced Friday, Bank of America and Goldman Sachs joined Citigroup and JPMorgan Chase in offering travel benefits.“We will continue to provide benefits that support our colleagues’ family planning choices wherever we are legally permitted to do so,” Citi’s head of human resources, Sara Wechter, wrote in a memo to employees on Friday.Tech firms, also, have moved to accommodate employees needs. Microsoft extended its financial support for “critical healthcare” after the draft version of the supreme court opinion overturning Roe was first leaked.Apple has said the existing benefits package allows employees to travel out of state for medical care, and Facebook parent Meta has said it will offer travel expense reimbursement “to the extent permitted by law”.In entertainment, Disney, Condé Nast, Warner Bros Discovery and Netflix are among those who have said they will offer travel reimbursements.While large companies can mitigate the supreme court ruling, the measures may not address the concerns of employees at firms that have in recent years located to low-tax states that have either enacted restrictions or essentially banned access to abortion.Texas, for instance, has been aggressively selling itself as a tax- and regulation-lite home to giants such as Oracle, Hewlett-Packard, and Tesla. Facebook, Amazon and Apple all have all grown their presence there.But the commitment of Texas, like Missouri, to a near-total ban on abortion could now clash with those companies’ stated values and harm the state’s ability to attract new business, employees and investment.Earlier this year, Texas state representative Briscoe Cain sent a cease-and-desist letter to Citigroup, saying he would propose legislation barring localities in the state from doing business with any company that provides travel benefits for employees seeking abortions.The St Louis mayor, Tishaura Jones, said in a post to Twitter that she believes abortion bans at the state level are going to make it harder to attract businesses. Kansas City mayor Quinton Lucas said one business has already backed out of setting up in the city.But many large companies have stayed silent, including McDonald’s, PepsiCo, Coca-Cola, General Motors, and Arkansas-based Walmart – the largest employer in the US with dozens of stores in states that have enacted abortion bans.The Business Roundtable, an organization that represents some of the nation’s most powerful companies, has said it “does not have a position on the merits of the case”.Perhaps a more pressing concern is that for millions of people not employed by a large international or national company, abortion restrictions present a more onerous challenge.According to the pro-choice Guttmacher Institute, abortion bans and restrictions don’t reduce unintended pregnancy or demand for abortion. Rather, they impose significant hurdles to obtaining care, causing stress for people in need of abortion and leading some to experience forced pregnancy and all its troubling consequences. “Evidence also shows the disproportionate and unequal impact abortion restrictions have on people who are already marginalized and oppressed – including Black and Brown communities, other people of color, people with low incomes, young people, LGBTQ communities, immigrants and people with disabilities,” institute president said in a statement Dr Herminia Palacio.In response, regional governments and community organizations have started outreach efforts to help anyone in need of the procedure. Baltimore’s mayor, Brandon Scott, has announced that the city will provide $300,000 in grants to organizations that offer abortion and family planning.Some left-leaning states have seen abortion procedures increase as surrounding states tightened access even before Roe fell. In Illinois, abortion increased by a quarter between 2017 and 2020. Guttmacher said in response “local and national abortion funds increased their capacity and helped even more people pay for their abortions”.But with an increasingly fragmented and increasingly polarized abortion landscape, many companies are likely to find themselves forced to respond to both pro-choice and abortion activists while pledging to promote women’s equality and workplace advancement.The issue of freedom to travel to other states for an abortion procedure issue has one notable, anti-Roe supporter. In his concurring opinion released Friday, Justice Brett Kavanaugh said it would be unconstitutional for a state to impose travel restrictions. “In my view, the answer is no, based on the constitutional right to interstate travel,” Kavanaugh wrote.TopicsUS politicsAbortionRoe v WadeHealthCitigroupBank of AmericaGoldman SachsnewsReuse this content More

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      Corporate America buckles down for culture war on Roe v Wade

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      Corporate America buckles down for culture war on Roe v WadeRepublicans are mulling retaliation against firms providing benefits such as travel assistance for employees seeking abortion After a supreme court decision that overturns Roe v Wade was leaked and signaled the impending end of federal constitutional protection for abortions, a trickle of companies have slowly started to announce policies that provide abortion access for their employees. But while the protections may keep employees and consumers happy, the threat of retaliation from conservative lawmakers looms.Abortion surveillance: in a post-Roe world, could an internet search lead to an arrest? Read moreCitigroup, one of the biggest banks in the US, quietly started covering the travel expenses of employees who want to get an abortion but are banned from getting one in their home state.The benefit was not announced publicly. Instead, the company mentioned the change in benefits in a March filing for shareholders. Once news outlets began to report on the new benefit, the Republican ire began.Conservatives in Congress asked House and Senate administrators to cancel its contract with the company, which issues credit cards to lawmakers to use for work-related flights, office supplies and other goods. A state lawmaker in Texas, infuriated by Citigroup, introduced a bill that would prevent companies from doing business with local governments in Texas if they provide abortion-related benefits to their employees.“Citigroup decided to pander to the woke ideologues in its C-suite instead of obeying the laws of Texas,” said Briscoe Cain, the Texas state representative who introduced the bill, in a statement. “We will enact laws necessary to prevent this misuse of shareholder money and hold Citigroup accountable for its violation of our state’s abortion laws”.Citigroup has now been joined by Amazon, Apple, Yelp, Match Group, Tesla and Levi Strauss & Company, all which have said they will offer travel assistance to employees who are in states that restrict abortions. Insiders at JP Morgan and Goldman Sachs have told news outlets they too are considering similar policies.“I expect there will be a significant shift and the most leading companies are going to recognize that they need to protect the healthcare of their employees,” said Shelley Alpern, director of shareholder advocacy at Rhia Ventures. “Most companies would like to avoid taking a public stance on this issue because it’s so controversial, but there are higher risks for companies when they don’t protect their employees’ healthcare access.”In today’s heated political climate – and with midterm elections looming – corporate America can expect a fiery response to any stance it takes on Roe’s fall. But given the widespread impact the end of Roe v Wade will have on much of the country – 26 states will restrict abortion access if the decision is overturned – it is unlikely that companies can get away with not responding to the issue once the supreme court makes its final decision.Neeru Paharia, an associate professor at Georgetown University McDonough School of Business, said that people expect more out of companies as trust in government has fallen.“People are enacting their political will in the marketplace,” she said. For consumers, a purchase from a company can be a symbolic sign of support. For employees, their identities can be tied to the ethical positions of the company they work for.Over the last few years, corporate America has started to become more vocal on various issues that have gotten the attention of conservative lawmakers, including voting rights and LGBTQ+ issues. But conservative politicians have gotten bolder at fighting back against what they consider to be “woke capitalism”.While the GOP has historically positioned itself as the business-friendly, tax-cutting political party, conservative lawmakers have been emboldened to threaten and punish companies who speak out on controversial issues.Last month, Florida’s governor, Ron DeSantis, revoked special land use privileges the state gave to Disney for its Disney World theme park in Orlando after the company – responding to backlash from employees and consumers – spoke out against the state’s “don’t say gay” law. The move appeared to catch people by surprise. Lloyd Blankfein, former Goldman Sachs CEO, tweeted that the move “smacks of government retaliation for exercising free speech. Bad look for a conservative.”“That was really shocking,” Paharia said. “Now you have a situation where consumers and employees want companies to take a political stance, but then you have governments that are possibly retaliating against them.”When it comes to abortion, “even though it might not be [explicitly] taking a side … [companies] are taking a position based on the kind of benefits they are going to offer their employees”.The threats lawmakers have made have so far not come to fruition, but the party seems serious on trying to penalize companies in some way. The Republican senator Marco Rubio introduced a bill this week that would not allow companies to deduct abortion-related travel benefits as regular employee benefits when a company files its taxes.“Our tax code should be pro-family and promote a culture of life,” he said in a statement.With these warnings, companies may try to keep the introduction of abortion-related quiet or downplay their significance. When Citigroup’s CEO, Jane Fraser – the first woman to lead a major American bank – was asked in a shareholders meeting about the company’s new abortion travel benefit, she said the benefit “isn’t intended to be a statement about a very sensitive issue”.“What we did here was follow our past practices,” she said, adding that the company had “covered reproductive healthcare benefits for over 20 years. And our practice has also been to make sure our employees have the same health coverage, no matter where in the US they live.”Jen Stark, senior director of corporate strategy at Tara Health Foundation, who helped coordinate the signatures of over 180 executives in a statement against abortion bans in 2019, said the potential backlash from conservative lawmakers proves that companies need to act on abortion restrictions beyond mitigating effects for their employees.“They can buy all the plane tickets their workers need, and that addresses the immediate harm, but the structural deficiency is the collateral damage,” she said. “The supreme court case didn’t happen in a bubble … you’re kind of walking over the rubble.”Beyond benefits for employees, Stark has been advocating for companies to use their lobbying powers and scrutinize political donations as state lawmakers prepare to restrict abortions.“We are at the moment everyone’s cried wolf about. It’s here, but there was also a lot of headwind,” she said. “What companies can do with a stroke of a pen to mitigate some of the harm is important, but the larger issue is getting out of this structural whirlpool that we’re in.”TopicsRoe v WadeCitigroupBankingGoldman SachsAppleUS politicsfeaturesReuse this content More