Presidential Election: 4 Key Business Issues for Boards

Business leaders have an old saying: Don’t make long-term strategic decisions based on election outcomes. That’s especially true for the upcoming Presidential election in November, which—because it’s expected to be so tight—is complicating 2025 planning for boards and leaders.

With two months to go before voters go to the polls, experts say the outcome of the election will swing policies in one of two very different directions on trade, antitrust regulation, healthcare costs, and other issues of major concern to business leaders. “It’s a very significant election in terms of what could happen from a broader business policy perspective,” says Nels Olson, global leader of the Global Government Affairs practice and co-leader of board and CEO services at Korn Ferry.

This uncertainty is one reason geopolitical risk here and abroad tops boards’ list of concerns. Michelle Lowry, a professor of finance and corporate-governance expert at Drexel University’s LeBow College of Business, notes that investment typically declines when political uncertainty is high. “The last thing you want to do is commit to a big course of action that could change, depending on the outcome of the election,” she says. “But you do want to be prepared for every scenario.” The issues include:

Talent acquisition

Firms’ hiring plans are directly tied to each administration’s plans for jumpstarting growth and spurring innovation, says Jane Edison Stevenson, global vice chair of the Board and CEO Services practice at Korn Ferry. After nearly two years preparing for a recession, she says, “companies need confidence that the economy is headed in the right direction before they start hiring again.” At the same time, however, they need to build a pipeline of talent with new skills and capabilities. As boards get more involved in talent strategy and development, Edison Stevenson says they need to be ready to work with leaders on the fly on where and when to hire for future growth.

Mergers and acquisitions

The current administration has been more aggressive than its predecessor about suing or blocking deals, which—along with inflation and interest rates—caused M&A to bottom out in 2022-23. Dealmaking has rebounded a bit this year, as leaders have gained more confidence in the regulatory environment and seek to buy growth. Olson says boards are closely watching for potential changes in antitrust and other regulations that may impact both their M&A strategy and the targets they go after.

Supply-chain disruption

Perhaps the widest gulf between the two candidates is in their approach to trade and tariffs. Dennis Carey, co-leader of board services at Korn Ferry, says boards have been keenly aware of the effects of tariffs on supply chains for steel, aluminum, and other materials since before the pandemic. Since then, companies have done a lot of work to shore up their supply chains to make them less vulnerable to disruption from geopolitical events. Still, with the election coming just as prices start easing for consumers, boards are strategizing with leaders about how to keep supply chains moving and prices from rising—regardless of the outcome.

Healthcare

Healthcare costs are one of the largest expenses for both businesses and consumers, and rising costs for insurers and providers means spending on it will only increase. Keeping costs down is a priority for each prospective administration, but their views on how to do it differ radically. Changes in healthcare policy could transform corporate savings of tens of millions of dollars into costs, and vice versa. Carey says smart boards are weighing how they might adjust capital-allocation strategies based on potential policy changes.

Learn more about Korn Ferry’s Organization Strategy capabilities.