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TEXXR

Chronicles

The story behind the story

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A look at donations by major tech execs to 2020 presidential candidates, with Elizabeth Warren and Bernie Sanders notably absent from the list of recipients

KEY POINTS  — LinkedIn co-founder Reid Hoffman has donated money to four Democratic primary candidates, while Salesforce CEO Marc Benioff has provided money to three.

CNBC Ari Levy

Context & Ripple Effects

Silicon Valley's donor class has been a reliable Democratic funding base for years — the same elite names, including Reid Hoffman, recur cycle after cycle — so the interesting question in 2020 is not whether tech executives give, but to whom. CNBC's tally shows Hoffman spreading money across four Democratic primary candidates and Salesforce CEO Marc Benioff across three, with Elizabeth Warren and Bernie Sanders absent from every recipient list.

That absence cuts against where the money below the executive suite is going: big-tech workers had already made Sanders their top recipient with roughly $270K in Q4 2019 alone, and by early 2020 analysis showed one-third of employee donations at major tech firms flowing to Warren and Sanders. The executive checkbook and the employee paycheck are pointing at opposite wings of the party.

First-order effects

  • Warren and Sanders run without large-dollar backing from named tech executives like Hoffman and Benioff, while the moderate field splits the multi-candidate hedge money — four recipients for Hoffman, three for Benioff.

Second-order effects

  • Progressive campaigns offset the missing executive checks with small-dollar volume from tech workforces, as when Amazon, Apple, Facebook, Google, and Twitter employees made Sanders the top recipient among presidential candidates in Q4 2019.

Third-order effects

  • If the pattern holds, Democratic fundraising structures around a two-tier tech donor base — executives hedging across the establishment field, rank-and-file employees concentrating on progressives — leaving candidates to choose which tier they court.

The trend: Tech political giving is splitting along hierarchy lines, with executive donors diversifying across moderate Democrats while employee donations concentrate behind Warren and Sanders.