Since George W. Bush became the first “MBA president” more than a decade ago, we’ve heard that the country could benefit from being “run more like a business.” This line of thinking has become more prevalent due to the now consistently lagging economy and lack of significant job growth, producing a demand for “political outsiders” to occupy political positions. Enter the numerous CEOs who’ve recently entered politics. The idea is that their managerial skills and eye for business will result in more fruitful terms in office, but the results certainly aren’t guaranteed. The following CEOs either became bad politicians or spent tons of money trying to become ones, making the always risky — and sometimes foolish — career change.
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Herbert Hoover, Mining Business — President, 1929-1933: Widely considered one of the worst presidents in our nation’s history, Hoover’s economic policies and lack of initiative during the onset of The Great Depression only worsened the ordeal and eventually brought forth the sweeping changes undertaken by Franklin Roosevelt. Infamously, Hoover’s advocacy of the Smoot-Hawley Tariff Act, legislation that raised tariffs on imports, resulted in the reduction of international trade and economic problems worldwide. Unemployment reached 24.9% and thousands upon thousands of impoverished Americans took residence in “Hoovervilles,” shanty towns for the homeless. Essentially, America suffered the consequences of electing the wrong person at the wrong time.
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Ross Perot, Electronic Data Systems — Presidential Candidate, 1992 and 1996: Because it’s been almost 20 years, many people forget that Perot was the frontrunner at one point prior to the 1992 election. A segment of America has always clamored for a legitimate third party candidate, and they got it, as he led both Bush and Clinton by 13% in June. However, his habit of ignoring his advisers and doing things his way — even though he had no experience in politics — caused his poll numbers to drop and his subsequent withdrawal in July. Although he reentered the race in October, the damage had been done. His supporters felt betrayed, and those who were previously on the fence viewed him as too unstable. He ran again four years later amid much less chaos, and again lost to Clinton.
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Steve Forbes, Forbes Magazine — Presidential Candidate, 1996 and 2000: Naturally, Forbes’ favorite issue was economics when he made his presidential bids. He extolled the virtues of a flat income tax, in which all Americans, regardless of incomes, would pay a 17% rate. In 1996, he won the Arizona and Delaware primaries and received significant support in other states. In 2000, he was barely a blip on the radar, exiting the race after the Delaware primary. Forbes’ major flaw was his stiff demeanor and lack of charisma. While Clinton charmed his way to a second term, Forbes was the butt of jokes on programs such as Saturday Night Live, which depicted him as a wooden, socially inept nerd.
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Morry Taylor, Titan International Inc. — Presidential Candidate, 1996: Overshadowed by more prominent businessmen who entered the political fray during the mid-’90s, Taylor’s forgetful run in 1996 featured the components of other failed CEO-turned-politicians’ campaigns. Touting his “outsider” status like Perot and endorsing a flat tax like Forbes, he never managed to receive more than 2% of the vote in any primary despite spending $6.5 million of his own money. According to Taylor, he was urged to run by an employee, who may or may not have been kissing his butt.
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Meg Whitman, eBay — California Gubernatorial Candidate, 2010: For a Republican in California, Whitman had it good. The national political climate favored her party, she had a ton of money, and she was running against a seemingly over-the-hill ex-governor who was 25 years removed from his failed bid for senate. In the end, she lost by almost 13% despite spending more than $160 million, shattering Michael Bloomberg’s record for personal spending by a candidate. The ease at which she threw tossed her money conflicted with her advocacy of fiscal conservatism, and as it turned out, turned off voters.
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Carly Fiorina, Hewlett-Packard — California Senatorial Candidate, 2010: Incumbent Barbara Boxer’s defeat of Fiorina completed a Democratic sweep of California and ended the runs of the state’s two Republican billionaire candidates. Fiorina’s run was accompanied by some controversy. Sarah Palin endorsed her candidacy despite the objection of conservatives who viewed Fiorina as a RINO (Republican In Name Only) and moderate Californians who were put off by the former governor of Alaska. During the Republican primary, her campaign released an ad featuring a “demon sheep” used to attack rival Tom Campbell, which made national news. It all added up to a 10% loss in the election, but according to Fiorina, “The fight is not over, the fight is just beginning.”
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Linda McMahon, World Wresting Entertainment — Connecticut Senatorial Candidate, 2010: November 2, 2010, was just a poor night for CEOs altogether, as McMahon was just the first to bow out. As with Whitman and Fiorina, McMahon’s spending emerged as an issue used against her during the Republican primary. Critics of her campaign described it as highly controlled and unwilling to discuss major issues such as Medicaid and Medicare. Additionally, the popularity of opponent Richard Blumenthal and her affiliation with the WWE — it was a well-known fact that she was the CEO — further weakened her chances of winning the election, which she lost by about 12%.
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Jeff Greene, Real Estate — Florida Senatorial Candidate, 2010: He was the least successful of the five CEOs to run for office in 2010. Losing in the Democratic primary, Greene couldn’t hide from his less-than-perfect past in which he was mired in legal battles with ex-employees, and made a fortune betting against the subprime mortgage collapse. With Florida’s other notable billionaire candidate, Republican Rick Scott, winning the gubernatorial election, Greene is now just a distant memory to voters.
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Herman Cain, Godfather’s Pizza — Georgia Senatorial Candidate, 2004: More proof that money can’t buy votes. Before he failed to make it out of the Georgia Republican primary in 2004, Cain failed to forge a viable candidacy in the 2000 Republican Presidential Primary, which he claims was more about making a political statement. Even though he’s never served in an elected position, the 64-year-old Cain has again announced his candidacy for the Republican Presidential nomination.
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Michael Huffington, Simmons & Huffington, Inc. — California Senatorial Candidate, 1994: Unlike the other CEOs on this list — save for Hoover — Huffington actually won something. In 1992, he spent $5.4 million to secure his election to a seat in the House, promising to donate his congressional salary to nonprofit organizations. Two years later, with minimal political experience, he spent $28 million, a record at the time for a non-presidential candidate, as he ran for the senate. These days, Huffington is a highly regarded activist in the LGBT community, but many still remember him for the catastrophic loss.
Taken From Business Insurance Quotes
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