CEOs under fire to dump Trump
President Trump's brand is becoming too toxic for a growing number of America's CEOs.
Within 24 hours on Monday, the chief executives of Under Armour (UA), Intel and Merck (MRK) quit Trump's manufacturing council in protest over his initial failure to condemn white supremacists. The president of the Alliance for American Manufacturing followed suit by quitting on Tuesday.
These public stands are highly unusual. CEOs are loath to alienate customers through politics and never want to be the target of a tweet storm from Trump.
But corporate leaders who were once eager for a seat at the Trump table are increasingly deciding the costs outweigh the benefits.
"There is a herd effect. With each CEO's announcement, it becomes easier for the next CEO to take a stand -- and the pressure goes up to do so," said Timothy Calkins, a marketing professor at Northwestern University's Kellogg School of Management.
Grassroots organizations are pleading with more corporate leaders to take action. Color of Change, a racial justice organization, is mobilizing a campaign called #QuitTheCouncil aimed at convincing Pepsi's (PEP) Indra Nooyi and others to immediately cut ties with Trump.
"We will not forget those who remained silent," the petition warns.
Other high-profile execs like General Motors (GM) CEO Mary Barra and Campbell Soup (CPB) boss Denise Morrison could face similar pressure.
From racism to climate change, CEOs keep turning on Trump
On Monday, Merck CEO Kenneth Frazier, one of the nation's most prominent black CEOs, stepped down from the president's manufacturing council following Trump's reluctance to denounce white supremacists who rallied in Charlottesville, Virginia, over the weekend. The demonstrations turned violent, and a counter-protester was killed.
Frazier cited a "responsibility to take a stand against intolerance and extremism" in leaving the council.
Two more CEOs, Under Armour's (UA) Kevin Plank and Intel boss Brian Krzanich, dumped Trump on Monday night -- even after the president responded to two days of criticism by calling the KKK, neo-Nazis and white supremacists "evil."
Trump fired back at the CEOs, calling them "grandstanders" in a tweet on Tuesday.
http://money.cnn.com/2017/08/15/investing/ceos-pressure-dump-trump-under-armour-intel/index.html