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CEO Blogs And Why They Won't Happen

David Utter
Expert Author
Published: 2005-05-10

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With a maze of regulatory rules to navigate regarding company information and the stock market, CEOs don't want to run afoul of the SEC.

Anxiously awaiting a high-powered CEO to enter the so-called blogosphere? Keep waiting.

The Securities and Exchange Commission adopted Regulation FD in August 2000. Companies that disclose material non-public information to certain entities, the company must also disclose that information to the general public.

While that seems tailor-made for a CEO blog, several factors will prevent a top-level CEO from doing one. Corporations have become entities with lives of their own. Public communications from one go through legal departments and public relation firms.

CEOs would have to defy their company's policies on transferring information to the public. And what corporate chief would want to jeopardize a job with a rich compensation package and lavish perks just to talk candidly in a blog?

A CEO blog would be a lose-lose prospect. The blogosphere opens one up for unrelenting criticism. CEOs used to hearing the words "Yes, ma'am" from underlings may not be able to handle the vitriol a group of anonymous commenters could post.

And finding a balance between posting too much or too little corporate information would be near impossible. Perhaps one day as today's CEOs move on to the golf course we'll see one or two take the helm of a Wal-Mart or a GE and start a blog of their own.

But it won't be today.



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About the Author:
David Utter is a staff writer for WebProNews covering technology and business. Email him here.

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