Skip to content

CEO Blogs could run afoul of SEC, similar concerns for law firm heads?

David Utter points out at Webpronews why CEO blogs may never take hold. “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.”

Large law firm heads may have similar concerns when it comes to publishing their own blog – not SEC concerns, but concerns of disclosing confidential information or things normally discussed only behind closed doors.

Utter discusses Regulation FD which provides that when a company discloses material nonpublic information to certain individuals or entities—generally, securities market professionals, such as stock analysts, or holders of the issuer’s securities who may well trade on the basis of the information—the company must make public disclosure of that information.

Utter points out that while a CEO blog may seem tailor-made for public disclosure, there are problems

…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.

Sounds an awful like large law firm heads being very conservative in their approach. That’s okay. But as time passes, we’ll see law firm heads with blogs as a means to communicate with their target audience. It can be done without disclosing confidential information. Plus a little criticism is healthy for any busienss. Such blogs will be a heck of a lot better than the stock welcome messages we now see on law firm Web sites.

Posted in: