CEOs quit U.S. council after president slow to move on racial clashes
TRENTON, New Jersey — The CEOs of athletic wear manufacturer Under Armour, computer chip maker Intel and pharmaceutical company Merck resigned Monday from the White House’s American Manufacturing Council — with the Merck withdrawal drawing a quick and angry Twitter outburst from President Donald Trump.
Merck CEO Kenneth Frazier cited the president’s failure to explicitly rebuke the white nationalists who marched in Charlottesville, Virginia, over the weekend. He wrote on Twitter Monday that “America’s leaders must honour our fundamental values by clearly rejecting expressions of hatred, bigotry and group supremacy, which runs counter to the American ideal that all people are created equal.”
Frazier is one of the few African-Americans to head a Fortune 500 company.
Under Armour CEO Kevin Plank resigned from the panel later Monday, saying his company “engages in innovation and sports, not politics.” Plank did not specifically mention Trump or Charlottesville, but said his company will focus on promoting “unity, diversity and inclusion” through sports.
Intel CEO Brian Krzanich followed, writing that while he had urged leaders to condemn “white supremacists and their ilk,” many in Washington “seem more concerned with attacking anyone who disagrees with them.”
Trump was under increasing pressure to call out the white supremacist groups involved in the Charlottesville demonstration. He lashed out almost immediately at Frazier, saying on Twitter that he will now “have more time to LOWER RIPOFF DRUG PRICES!” The president followed up later in the day, tweeting that Merck “is a leader in higher & higher drug prices while at the same time taking jobs out of the U.S. Bring jobs back & LOWER PRICES!”
Drugmakers have come under criticism for soaring prices in the U.S., including by Trump, though he has yet to act on a promise to contain them. With the barbs, Trump appeared to attack an industry executive who has tried to make drug pricing somewhat more transparent by revealing his company’s overall drug price changes.
In January, Merck reported that its average net prices — the amount the company receives after discounts and other rebates — increased in the years since 2010 in a range between 3.4 per cent and 6.2 per cent per year. That’s about half as large as the increase in its retail prices. Much of the furor over drug prices recently has been over increases that have been far bigger and come one after another for drugs that have been on the market for years.
The exchange lit up social media Monday, with many people lauding Frazier and blasting the president. Trump eventually made a statement Monday condemning bigotry .
Meanwhile, other executives stated their support for Frazier. Unilever CEO Paul Polman wrote on Twitter, “Thanks @Merck Ken Frazier for strong leadership to stand up for the moral values that made this country what it is.”
Frazier, who grew up in a poor neighbourhood in Philadelphia, resigned from the manufacturing advisory council days after one person was killed and others wounded in violent clashes between white supremacists and protesters.
Frazier and his siblings were raised by their janitor father after their mother died when they were very young. He has earned a reputation as a risk taker in the drug industry, pouring money into daunting research areas, particularly trying to develop a treatment for Alzheimer’s disease.
Tesla CEO Elon Musk resigned from the manufacturing council in June, and two other advisory groups to the president, after the U.S. withdrawal from the Paris climate agreement. Walt Disney Co. chairman and CEO Bob Iger resigned for the same reason from the President’s Strategic and Policy Forum