SEPTEMBER 12, 2009.

Silicon Valley Moguls Square Off in Race to Run California

By STU WOO

SACRAMENTO, Calif. -- Former eBay Inc. Chief Executive Meg Whitman has become an early favorite in California's Republican gubernatorial primary race, but she may soon get a run for her money from another Silicon Valley veteran with deep pockets, Steve Poizner.

Ms. Whitman has intrigued Republicans nationwide with her business credentials and potential to become the Golden State's first female governor. Former Congressman Tom Campbell has also been running strong in early polls for the June 2010 Republican primary.

But political analysts said the relatively unknown Mr. Poizner, who has ranked a distant third in surveys, could become a dark-horse contender if he overcomes certain weaknesses, including a perceived lack of charisma. As California's elected insurance commissioner, he is the only Republican who holds a statewide office other than Gov. Arnold Schwarzenegger. The former entrepreneur also has business experience that could appeal to potential GOP voters.

Associated Press

Steve Poizner speaks during a news conference at the California Republican Spring Convention in Sacramento, Calif. in February.
."If you look at his record, it's really kind of sterling in lots of ways," said Larry Gerston, a political-science professor at San Jose State University.

Political analysts say Mr. Poizner's personal fortune also makes him a serious contender. Both he and Ms. Whitman are using their own money to finance their campaigns.

His "pockets are as deep or deeper than Whitman's," Mr. Gerston said. He estimates Mr. Poizner would be able to spend $50 million on just the primary. Analysts said that when Mr. Poizner begins buying ads, his poll numbers likely will surpass Mr. Campbell, who isn't self-financed and has raised a fraction of what his competitors have. Mr. Poizner, 52, declined to disclose his net worth.

The Houston native and Stanford University business-school alumnus founded two technology startups. One of them, SnapTrack Inc., developed global-positioning receivers for cellphones. He sold SnapTrack to wireless-technology giant Qualcomm Inc. for $1 billion in 2000.

In an interview in his Sacramento campaign office, Mr. Poizner said he had his sights set on a gubernatorial run in 2001 when he worked for the National Security Council as a prestigious White House Fellow. He also volunteered as a teacher in a public high-school in San Jose, Calif. After losing a state Assembly race in 2004, he was elected insurance commissioner in 2006.

He plugs his managerial skills on the campaign trail, saying he cut costs in the commissioner's office by 15% and shrunk staff from 1,300 to 1,100 employees.

"The voters now are ready for a serious problem solver with a track record," Mr. Poizner said, adding that his experience in the public and private sectors makes him best suited to solve the state's fiscal woes.

He has openly criticized the 53-year-old Ms. Whitman's political inexperience, saying that "being effective in Sacramento or Washington, D.C., is totally different from being successful in a boardroom." Of Mr. Campbell, 57, he said, "people don't want a career politician."

A spokeswoman for Ms. Whitman said she is the "only credible candidate in the race who has created thousands of jobs."

A spokesman for Mr. Campbell said "the campaigns would be best focused on how to fix California's problems."

Like Ms. Whitman, Mr. Poizner has released few specifics about his platform. He would "modernize and overhaul" state government, he said, and slash taxes to create new businesses and jobs. He said that would help balance California's budget by increasing total tax revenue.

Despite his wealth and government experience, Mr. Poizner faces obstacles. For instance, excitement generated by the Whitman campaign has caused a handful of elected Republicans who early on had endorsed Mr. Poizner to instead switch to Ms. Whitman. The insurance commissioner called the moves "insignificant," noting he still has far more endorsements from elected officials than she does.

He must also address doubts among conservatives, a big part of the GOP primary electorate. They were troubled by his $11,000 contribution to Al Gore's 2000 presidential campaign and a $10,000 contribution to Mr. Gore's Florida recount fund. Mr. Poizner said he wrote the checks on behalf of his wife, a Democrat. He said he voted for George W. Bush in the 2000 and 2004 presidential elections.

Political analysts say Mr. Poizner may have an even tougher hurdle to clear. They say he isn't a dynamic speaker and has a hard time exciting crowds.

"The charisma factor is a real problem here," said Bruce Cain, a political-science professor at the University of California, Berkeley. "How you look and how you sound is a major part of how you attract voters."

Mr. Poizner rebutted such criticism, saying part of the challenge is that he is still mostly unknown.

"The voters have no idea about my background," he said. "They will once I'm done."

Write to Stu Woo at Stu.Woo@wsj.com