When governments become top shareholders, corporate focus shifts from pleasing customers to securing political favor and appropriations. R&D budgets are reallocated to lobbying, and market competition devolves from building the best product to playing the policy game most effectively, strangling innovation.

The demands of the CEO role—focusing on external stakeholders and high-level strategy—inevitably distance them from operational realities. This counterintuitive insight argues against the "Imperial CEO" model and highlights the constant risk of losing touch with the business.

As traditional economic-based antitrust enforcement weakens, a new gatekeeper for M&A has emerged: political cronyism. A deal's approval may now hinge less on market concentration analysis and more on a political leader’s personal sentiment towards the acquiring CEO, fundamentally changing the risk calculus for corporate strategists.

David Solomon notes a split in CEO sentiment. While they are constructive on the economic and regulatory environment, they are concerned by inconsistent, "shotgun" policy approaches and political "noise." This uncertainty makes them more cautious, especially outside the U.S., despite underlying business optimism.

The key risk facing biomedical innovation is not just policy chaos, but the normalization of political and ideological influences on science-based regulation. This includes CEOs negotiating prices with the president and FDA enforcing pricing policies, breaking long-standing norms that separated science from politics.

CEOs remain silent on controversial political issues not out of agreement, but because they operate in silos. Their boards advise them to avoid individual conflict with Trump. This fear of being singled out prevents the collective action that would effectively counter authoritarian pressure.

Beyond budget expenses, intense political engagement consumes significant managerial time and energy. This focus on navigating policy and lobbying efforts directly detracts from resources that were previously dedicated to product innovation, customer service, and operational efficiency.

Not all business problems are created equal. Time savings often translate to five-figure cost savings, which may not be compelling. The most powerful executive problems are "six-figure problems"—major risk mitigation (avoiding lawsuits), significant revenue generation, or replacing other large costs.

Top tech leaders are aligning with the Trump administration not out of ideological conviction, but from a mix of FOMO and fear. In a transactional and unpredictable political climate, sticking together is a short-term strategy to avoid being individually targeted or losing a competitive edge.