Do you have a stock portfolio, retirement account or pension in the US? You are probably investing in several S&P 500 businesses.
In light of the violence at the U.S. Capitol and votes by some members of Congress against declaring the outcome of the January 6 presidential election, many of these companies have adjusted their political contributions. Quartz visited each member of the Standard & Poor’s 500 Index to learn how they change their policies. We called and emailed the 500 businesses containing the index, in addition to the collection of news reports and company statements. They are among the largest and most important listed companies listed in the USA; At the time of the certification vote, their combined market value was about $ 34 billion.
S&P 500 companies together make up the bulk of many investors’ portfolios, whether directly through individual stocks or passively through index funds. Exchange traded funds (ETFs) that follow the S&P 500 are the most popular ETF investments and are managed by companies such as State Street, Vanguard and BlackRock.
It is illegal for companies to contribute direct after federal political campaigns
U.S. election laws prevent companies from using company funds to support a political candidate. Instead, employees of those companies can voluntarily make contributions to the company-associated Political Action Committees. They are known as PACs and make contributions to candidates on behalf of the contributors. Companies can support the effort by covering some of the operating costs of the fund.
The trading groups and portals to which businesses belong usually make a major contribution to the supporters of the industry in Congress. This data does not cover the trading groups working on behalf of companies.
Companies that stopped PAC contributions to politicians who voted against election certification
Some of these companies have said that this contribution is only valid for the current term of the candidate, or the current sitting of Congress. Others have not given an end date – meaning the ban could last forever, or it could last until the company thinks the chances of a public inquiry are lower.
Companies that have stopped making PAC contributions to all politicians
Some companies currently have nothing to do with politics; others just follow their typical contribution schedule. The donation investigation has led some companies to say that they will “interrupt” or “suspend” all PAC contributions. Some suspensions will last for a specified period of 30 days to a year; others are indefinite or end once a company has reviewed its policies. Democrats – who all voted to confirm the election results – cried foul. “I do not know what you deserve by cutting everyone off. “You must punish those responsible,” Senator Ben Cardin told Politico.
The reality of contributions to the campaign, however, is that there must be a campaign to contribute. Withholding donations for a quarter or a year is a paper tiger, especially if the PAC usually only gives to candidates during the election years.
Companies that have not made any concrete changes to their PAC contributions
A number of companies in this list have indicated that they are reviewing their policies, but have yet to make any changes. Others said they would continue to evaluate the contributions on candidates by candidates – including their votes for certification – to ensure that their money supports people with similar values to the company.
Companies making other changes to their PAC policies
Some companies will not say outright that they will stop contributing to politicians who voted against election certification, but have made explicit statements to indicate that they will not support candidates who they believe do not respect the rule of law. Others said they were reevaluating their contributions.
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PACs ‘evaluate’ and ‘evaluate’ candidates in each election cycle. As such, a company that plans reviews and evaluations of contributions is listed as having made no policy changes. A company that ‘reevaluates’ its contributions states that it is changing its policy.
Companies that do not have PACs or say they do not contribute to federal campaigns
Not every company has a PAC. Those who do so may never give to members of Congress, or not in the latest election cycle.