Friday, July 13, 2007

An Entrepreneur's Mistake 

This story is all over the news, but it is worth citing here as a example of dumb communications. In all the years I've worked in PR, I've witnessed only one other case in which a CEO got onto a bulletin board to talk to stock traders. That CEO did it, however, under his own name. Interestingly, he was an entrepreneur too.

Because of this mistake, there is a good chance this CEO won't get the merger that he is looking to achieve, and his board might relieve him of his duties. Corporate governance experts and activists are calling for him to resign or be kicked out.

It's not worth commenting on the PR disaster this CEO has caused for his company. It's obvious. Even if the company had not been public, revelation of what the CEO was doing would not be good for the business.


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