SEC Issues New Social Media Rules for CEOs

Remember when the SEC threatened to put the smack down on Netflix CEO Reed Hastings for revealing in a Facebook post that his company had achieved a record one billion hours of video streamed in a single month? The organization claimed that he was revealing confidential business info in order to bump up his company’s stock prices, but they’re totally cool with it now.

The organization laid out some new guidelines for CEOs who want to be more active on social media (a course strongly recommended by Leslie-Gaines Ross of Weber Shandwick).

There’s nothing too crazy here — just a realization that the rules regarding business disclosures need to take a step into the 21st century.

The only real caveat is that executives must let investors and other affected parties know which platforms they will use to disseminate relevant information so everyone has access. They already know they can’t release “selective disclosures” or insider info about their companies’ financial performance unless they want to get in big trouble.

So now CEOs have no excuse to avoid social media. How social is your CEO?

@PatrickCoffee Patrick Coffee is a senior editor for Adweek.