Charles Schwab ends all political donations and closes his PAC after criticism

Topline

Brokerage firm Charles Schwab will no longer collect money for donations to political candidates, it announced on Thursday, closing its political action committee “in light of a divided political climate and an increase in attacks on those who participate in the political process” after criticizing her. had given money to candidates who had voted in favor of annulling the results of the presidential election.

Highlights

In a statementCharles Schwab announced that he would donate all remaining funds in his PAC to the Boys & Girls Club of America and historically to black colleges and universities.

The company said it made the decision because of “today’s hyper-partisan environment,” while vowing to continue to champion public policy.

He also defended his history of giving, which includes giving money to Republicans and Democrats, not directly to presidential candidates.

Charles Schwab featured prominently in a campaign for the Lincoln Project, an anti-Trump Republican PAC, exposing companies that gave money to members of Congress who sought to overturn presidential election results.

crucial quote

“It is unfortunate that our efforts to defend the interests of investors are now being deliberately misrepresented by voices from both sides of the aisle as something they are not,” the company said in a statement. “It is a sad by-product of the current political climate that some are now resorting to questionable tactics and misleading claims to attack companies like ours. We also believe it is unfair to knowingly blur the lines between actions of a public company and those of individuals who work or have worked for the company.

Surprising fact

The decision to eliminate PAC altogether is a step further than other companies have taken in response to the Capitol uprising on January 6. Some announced a pause on political donations, while others announced restrictions on who can receive donations go forward.

Large number

$113,890.57. How much is it cash the Charles Schwab PAC had on hand when it was last filed with the Federal Election Commission. He donated more $485,000 between early 2019 and November 23, 2020.

Key Context

With over $6 trillion in assets, Charles Schwab is one of the largest brokerage firms in the United States. The company was established in 1971 and is named after its founder, Charles Schwab, who remains chairman of his namesake company. Schwab himself is much more partisan in his donations than his company’s PAC and also spends a lot more money. Schwab, who has an estimated net worth of $10 billion, has invested millions in Republican campaigns over the years.

Further reading

Here are the American companies taking a break from political donations (Bloomberg)

#85Charles Schwab (Forbes)