Do you have a stock portfolio, retirement account or pension in the USA? You are probably invested in several S&P 500 companies.
In light of the violence on the United States Capitol and the votes of some members of Congress against certifying the results of the January 6 presidential election, many of these companies have announced adjustments to their political contributions. Quartz surveyed each member of the Standard & Poor’s 500 Index to see how they are changing their policies. We call and email the 500 companies that make up the index, in addition to collecting news and extracts from the companies. They are some of the largest and most important publicly traded companies listed in the United States; at the time of the certification vote, its combined market value was around $ 34 trillion.
Together, the S&P 500 companies make up most of the portfolios of many investors, either directly through individual stock purchases or passively through index funds. Exchange-traded funds (ETFs) that track the S&P 500 are the most popular ETF investments and are managed by companies like State Street, Vanguard and BlackRock.
It is illegal for companies to contribute directly for federal political campaigns
US electoral laws prevent companies from using company funds to support a political candidate. Instead, employees of these companies can make voluntary contributions to the Political Action Committees associated with the company. Known as PACs, they make contributions to candidates on behalf of contributors. Companies can support the effort by covering some of the fund’s operating costs.
The business groups and industry lobbies to which companies belong typically make major contributions to industry supporters in Congress. This data does not cover business groups that lobby on behalf of companies.
Companies that stopped PAC contributions for politicians who voted against electoral certification
Some of these companies said that these contribution bans are only for the candidate’s current term, or the current session of Congress. Others have not given an end date – meaning that the ban could last forever, or it could last until the company considers that the chances of public scrutiny are less.
Companies that stopped contributing to the PAC for all politicians
Some companies don’t want to have anything to do with politics now; others are just following their typical contribution schedule. The scrutiny of donations has led some companies to say that they will “pause” or “suspend” all PAC contributions. Some suspensions will last for a specified period ranging from 30 days to a year; others are undefined or will end as soon as the company reviews its policies. Democrats – who voted to certify the election results – shouted. “I don’t know what you get for cutting everybody. You must penalize those responsible, ”Senator Ben Cardin told Politico.
The reality of campaign contributions, however, is that there needs to be a campaign to which to contribute. Withholding donations for a quarter or a year is a paper tiger, especially if the PAC usually only gives it to candidates in election years.
Companies that did not make concrete changes to their contributions to the PAC
Several companies on this list indicated that they were reviewing their policies, but had not yet made any changes. Others said they will continue to evaluate candidate-to-candidate contributions – including their votes on certification – to ensure that their money is supporting people with values similar to those of the company.
Companies that are making other changes to their CAP policies
Some companies would not openly say that they would interrupt contributions to politicians who voted against electoral certification, but made explicit statements to indicate that they would not support candidates that they determined to “not respect the rule of law”, for example. Others said they are reevaluating their contributions.
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PACs “analyze” and “evaluate” candidates in each election cycle. As such, a company that has planned reviews and assessments of contributions is listed as having made no policy changes. A company that is “reevaluating” its contributions is listed as changing its policies.
Companies that don’t have PACs or say they don’t contribute to federal campaigns
Not every company has a PAC. Those who do may never give it to members of Congress, or they may not have it in the most recent electoral cycle.