Board members must take care when using Facebook or Twitter to comment
The recent sacking of a CFO for his comments on Facebook has caused outrage in some corners. As usual the assumption has been that a person has a right to tweet freely and any attempt to punish or restrict that is seen as draconian.
In this case, however, the matter is more complex than might seem at first glance. The individual concerned was in a privileged position at a publicly listed company and was bound by professional and legal conduct standards that placed explicit obligations on his behaviour. His tweet, that good numbers = happy board, could easily have been interpreted as disclosing ahead of time sensitive commercial data. Indeed, a similar email to a friend might have been considered insider trading.
What this case does is highlight again the care with which senior managers need to conduct themselves when using social media. Although Twitter, Facebook and their ilk can be seen as anarchic and free-flowing their use is not above the law. Inadvertently disclosing or hinting at deals, financial performance or recruitment of individuals can have serious consequences.
Board members, senior managers and those who have access to sensitive information need to be reminded of their obligations from time to time.
In this case, however, the matter is more complex than might seem at first glance. The individual concerned was in a privileged position at a publicly listed company and was bound by professional and legal conduct standards that placed explicit obligations on his behaviour. His tweet, that good numbers = happy board, could easily have been interpreted as disclosing ahead of time sensitive commercial data. Indeed, a similar email to a friend might have been considered insider trading.
What this case does is highlight again the care with which senior managers need to conduct themselves when using social media. Although Twitter, Facebook and their ilk can be seen as anarchic and free-flowing their use is not above the law. Inadvertently disclosing or hinting at deals, financial performance or recruitment of individuals can have serious consequences.
Board members, senior managers and those who have access to sensitive information need to be reminded of their obligations from time to time.
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