CEOs Ponder Holding Back Campaign Money

During an hourlong meeting Tuesday, a group of about three dozen chief executives discussed divisions in the country, efforts to thwart the presidential transition and what voice they thought business should have in politics, according to people who participated in the conversation. Some business leaders who have donated to Republican campaigns stated that they were considering withholding future political contributions to elected officials who have said they would oppose certifying the Electoral College results for President-elect Joe Biden, those people said.

Among business leaders on the call were Walt Disney Co. Executive Chairman Robert Iger, a noted Democrat who has indicated interest in an ambassador role under the Biden administration; Accenture PLC Chief Executive Officer Julie Sweet, a Republican who has donated to Sen. Ted Cruz; and Merck & Co. CEO Ken Frazier, who publicly broke with President Trump in 2017, but has donated to candidates from both parties, including Senate Majority Leader Mitch McConnell. The gathering included about a dozen advisers, such as former Obama administration Homeland Security Secretary Jeh Johnson and Anthony Scaramucci, who served briefly in the Trump administration but has more recently been a critic of the president.

The gathering, along with a letter sent by nearly 200 CEOs on Monday urging Congress to accept the election results, marks a shift in tactics for business leaders, some of whom are joining forces to take newly strident positions on politics rather than speaking out individually. Other business groups, including the U.S. Chamber of Commerce and the Business Roundtable, have also issued statements this week calling for a smooth transition of power.

Also in the meeting, people familiar with the gathering said, were Goldman Sachs Group Inc. Senior Chairman Lloyd Blankfein, a Democrat, and Deloitte CEO Joseph Ucuzoglu, who doesn’t disclose his political affiliation, both of whom donated to Republicans in recent years. The discussion began with a conversation about political instability in the country, the people said.

About halfway through, the executives began discussing potential actions they could take to help ensure a smooth presidential transition, some of the people said. The group discussed withholding political contributions, which some viewed as more meaningful than public statements, they said.

Some executives in attendance said they would reconsider hiring, business and investments in states whose officials were fighting the transition, some of the people said.

“We have to create some level of cost,” said Thomas Glocer, a former CEO of Thomson Reuters Corp., and a director at Merck and Morgan Stanley, who attended Tuesday’s meeting. Mr. Glocer, a registered Democrat, says he has voted for candidates in both parties. “Just coming out with another public letter isn’t going to do much. Money is the key way.”

Mr. Glocer said a debate among the CEOs in attendance Tuesday and in conversations leading up to the call centered on how to most effectively persuade lawmakers to uphold the rule of law. Some executives could withhold campaign contributions to senators opposing the Electoral College results, for example. But executives also discussed working behind the scenes, trying to influence lobbyists and those close to elected officials. Though some lawmakers see opposition from CEOs as a point worth celebrating, “money is something they do care about,” Mr. Glocer said.

Most business leaders are reluctant to hold back campaign contributions or bring political matters into the boardroom, but many now feel there is little choice, Mr. Glocer said. “Respect for the rule of law underlies our market economy,” he added. “Business leaders need to stand up on these issues because in the end they are business issues, not just politics as usual.”

A group of Republican senators say they plan to object to the Electoral College votes Wednesday, pushed by President Trump to challenge a contest that was won by Mr. Biden. By law, Congress must hold a joint session Jan. 6 to ratify Mr. Biden’s 306-232 Electoral College win. Majorities in the House and Senate would have to agree for the challenge to succeed, an extremely unlikely prospect given that Democrats control the House and Republican party leaders have opposed the effort.

Business leaders are often active political donors to both parties. Mr. Cruz, the Texas senator who is spearheading the Republican senators’ efforts, has received millions from hedge fund operator Robert Mercer and fracking billionaires Dan and Farris Wilks, The Wall Street Journal has reported.

Jeffrey Sonnenfeld, a Yale School of Management professor, convened the meeting along with an earlier virtual gathering of business leaders shortly after the election. Mr. Sonnenfeld, who has critiqued the Trump administration at times but remains close to some officials, said the CEOs said Tuesday they also plan to review investment practices, reconsidering staffing decisions and facilities in states where officials are impeding the transition.

Write to Emily Glazer at [email protected] and Chip Cutter at [email protected]