Where will President Donald Trump’s aides go next? That may depend on investors in U.S. companies. Top officials often go on to land coveted company board seats after they leave government. But cabinet members who stuck by the president as he rejected the election result aren’t suited to those roles. Shareholders who care about governance should ensure the revolving door remains shut. Companies can benefit from the connections and stature that comes with former Washingtonians. Former Defense Secretary Ash Carter is a director at Delta Air Lines while ex-Treasury chief Tim Geithner is president of private equity firm Warburg Pincus. Lisa Jackson, administrator of the Environmental Protection Agency under Barack Obama, is now an executive at Apple. Trump’s advisers, though, are tainted by the president’s refusal to facilitate a peaceful transition of power. As early as last summer, the president declined to commit to accepting the November election results and repeatedly said the vote would be rigged. Since the ballot, he has contested his loss and declined to concede. The storming of the Capitol building on Wednesday happened after Trump urged his supporters “to fight.” Some top aides, like Chief of Staff Mark Meadows, actively supported Trump’s claims. But others have looked the other way. Treasury Secretary Steven Mnuchin condemned the violence in Congress and has aided President-elect Joe Biden’s transition team. Even so, he and other cabinet officials remained at their posts. Transportation Secretary Elaine Chao resigned on Thursday – only after the violence had subsided. That makes the members of Team Trump unsuitable guardians of shareholders’ interests. Companies conduct ballots too, for example to install and remove directors, and the board’s job is to respect their results. Those who disregarded the will of the people aren’t much qualified to carry out the will of shareholders. Besides, their connections may get less valuable if Washington peers distance themselves from the chaos of the last four years. Some big institutions say environmental, social and corporate governance are now top priorities in their investment decisions. Those include BlackRock, the firm run by the influential Larry Fink that has $7.8 trillion of assets under management, and pension funds like the $400 billion California Public Employees’ Retirement System. Whatever their politics, if they care about shareholder democracy, they should be ready to give former members of Team Trump a clear thumbs down.
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