A new controversy has emerged involving a possible violation of campaign finance law by Republican Senator Ron Johnson (WI). According to Talking Points Memo, Johnson collected $10 million in a deferred compensation agreement from his former employer, Pacur. After he left Pacur, Johnson subsequently spent $9 million of his “own money” in a successful senatorial campaign. Now questions have arisen about the timing of the payment, and Johnson may have added fuel to the fire by refusing to reveal a written agreement behind the deferred compensation deal.
Timing and intent is the crucial matter in determining whether the payment was illegal or not. It is illegal for corporations to directly finance campaigns, so if Johnson received the money with the understanding that it would go towards his campaign then it would almost certainly constitute a crime. Under this scenario, Johnson could face a fine, an ethics investigation, punishment by the Senate, or possibly even prison time. On the other hand, if Johnson received the payment merely as compensation for his work done at Pacur before he began his campaign than the payment is probably perfectly legal, even if Johnson subsequently used the money to finance his campaign.
When asked about the payment by reporters as TPM Johnson stated, “It's a private company. We fully complied, fully disclosed [and] followed the law, complied with the spirit and letter of the law, and again it's a private company. Those financial matters end up being more complex.” However, Johnson has been unwilling to release the deferred compensation agreement which stipulates the terms of the payment.
In what may be a sad twist irony, the man Johnson defeated, former Senator Russ Feingold, actually helped write one of the most important campaign finance laws. Since that time Feingold has railed against the influence of corporate money in elections, and argued for even stricter campaign finance laws to prevent corruption. It now appears that Feingold may have been defeated by a man who was at least indirectly financed by a corporation. Even if the payment to Johnson was legal, some may question the integrity of a system which allows a corporation to pay federal candidate millions in “deferred compensation” right before he launches a campaign.
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