Business council sees CEOs exit to protest Trump
Most leaders to stay for now as friction builds over White House controversies
For Intel CEO Brian Krzanich, the last straw was U.S. President Donald Trump’s attack on Merck & Co. CEO Ken Frazier.
Krzanich has paid a price internally for maintaining a relationship with the Trump administration. He planned, then cancelled, a meeting at his home last July for then-candidate Trump. Earlier this year, he went to the White House to announce the completion of a factory and new jobs.
The signs of support for Trump sparked criticism inside Intel aimed at its leader, according to people familiar with internal postings. In response, Krzanich was forced to explain that as the head of a manufacturing company, he needs to stay connected to those who set tax policy. Intel’s manufacturing is done mainly in the U.S. The availability of tax breaks is one of the key influences on whether the multibillion-dollar plants are economically viable.
By Monday, the chipmaker’s leader had seen enough.
Like many others, Krzanich tweeted his frustration with the lack of forceful condemnation by political leaders of the white supremacy-related deadly violence in Charlottesville, Va. Then, late in the evening he posted his resignation from the White House business panel on manufacturing.
“I resigned because I want to make progress, while many in Washington seem more concerned with attacking anyone who disagrees with them,” Krzanich wrote. “My request — my plea — to everyone involved in our political system is this: set scoring political points aside and focus on what is best for the nation as a whole.”
Krzanich’s decision came after Trump took to Twitter to harshly criticize Frazier and Merck for high drug prices and sending jobs overseas. Earlier, Frazier had stepped down from the White House panel as a “matter of personal conscience.”
Krzanich’s withdrawal from the council was also related to his doubts about the effectiveness of the body itself, according to a person familiar with his thinking.
Also contributing to Krzanich’s thinking: Intel Tuesday published its latest report on efforts to hire a more diverse workforce — a plan that BK, as he’s known inside the company, has staked his reputation on, vowing to spend US$300 million on activities including the sponsorship of minority and women-run startups.
Also Monday, Under Armour CEO Kevin Plank quit the panel. On Tuesday, Scott Paul, the president of the Alliance for American Manufacturing, said he was stepping down, because it was “the right thing for me to do.”
Trump on Tuesday dismissed that criticism, saying the executives were cutting ties with him because he pressured them to bring manufacturing back to the United States.
“They’re leaving out of embarrassment,” Trump said. He added that he had been “lecturing” the corporate executives.
Meanwhile, PepsiCo Inc. CEO Indra Nooyi is being targeted by Color of Change, a non-profit racial-justice group that has previously gone after Uber Technologies Inc. and Walt Disney Co.
The organization is pressuring Nooyi to step down from the council. Campbell Soup Co. CEO Denise Morrison, another Trump adviser, will be a target of the campaign as well, said Rashad Robinson, executive director of the group, which claims one million online members. “We let Pepsi know about 24 hours ago that we would be moving forward on them,” Robinson said Tuesday.
“They are a public-facing company that talks openly about diversity. Their role on this business council is that of an enabler, and they are an enabler to Donald Trump — not just the policies but the practices that are putting folks in harm’s way.”
CEOs from Dow Chemical Co., General Motors Co., General Electric Co. and Boeing Co., meanwhile, have indicated they will stay for now.
Trump also tweeted on Tuesday that he has many leaders waiting to take the place of anyone who leaves.
“What we’re hoping is for these companies to stop, and desert, and leave this administration isolated,” Robinson said.