DeSantis’ policymakers also have turned to Puzder for assistance, among others. While the Florida governor has been on a campaign for more than a year against corporate “wokeness” across a broad array of issues that include climate, LGBTQ rights and investing, Puzder remains focused on prioritizing fiduciary responsibility ahead of ESG.
While Puzder says he doesn’t know how many other states will introduce anti-ESG laws next year, he would be happy if his proposal becomes law in another five states. With Republicans regaining control of the US House of Representatives, Puzder says that opens the door for negotiations to scale back unneeded federal regulations and also schedule hearings to keep the pressure on ESG proponents.
Puzder credits David Black, founder of the conservative website 2ndVote, and Black’s wife, former US Congresswoman Diane Black, with his philosophy on corporate activism and keeping social causes out of company decisions. 2ndVote ranks companies’ corporate “wokeness’’ on a scale from a liberal 1 to a conservative 5, based on issues such as abortion, gun control and immigration. They prefer companies to remain neutral and score a 3. Puzder is executive chairman of 2ndVote Advisors, which manages all the of the firm’s investment products.
Puzder concedes he’s not used to working behind the scenes. As a chief executive, he gained notoriety for approving TV commercials featuring fashion models in bikinis eating hamburgers and for his hard-nosed approach to revamping the Hardee’s restaurant chain after CKE Restaurants Holdings Inc. bought it.
He first started talking about ESG in May 2021. That was the same time when a tiny ESG fund, Engine No. 1, landed three new directors on Exxon Mobil Corp.’s board that were backed by BlackRock. Puzder says the Exxon vote gave him a greater understanding of the influence that the giant money manager has in the financial markets.
Puzder says he doesn’t care if BlackRock manages public money. He just doesn’t want the firm to vote on behalf of state and local pension funds. He has been urging wealthy friends to start a proxy advisory firm that gives voting recommendations to state and local officials who disagree with BlackRock’s approach on ESG. At least one of his friends is considering it, Puzder says, but he declined to provide details.
For its part, BlackRock says investors should vote their shares the way they want. Last year the firm started giving its biggest clients, including US public and private retirement funds, the power to do so. Its biggest rival, Vanguard Group Inc., also said it’s looking at ways to give investors more say over how their shares are voted.
Even Puzder is surprised by how much momentum is behind the anti-ESG backlash. Last year, he said fellow Republicans’ eyes “would glaze over” when he brought up the topic. Now it’s standing-room only for ESG panels at conservative conferences, he says. A video he's featured in that aims to explain the risks of ESG to college and high school students now has more than two million views.
And Puzder takes satisfaction in his unexpected success since leaving CKE. Puzder recounted a recent trip in Utah when he was traveling from the airport. His driver recognized him from Fox News. “‘ESG,’’’ the driver told him. “‘We gotta get rid of that after the election.’’’
That, Puzder says, “enhanced his tip.’’
This article was provided by Bloomberg News.