Social media activity sees CFO fired
One boutique womens clothing company in the United States has been forced to fire an executive due to his activity on social media networks such as Facebook and Twitter.
The social media strategy of Texas-based Francesca's Holdings Corp took a hit after it was discovered that its chief financial officer Gene Morphis "improperly communicated company information through social media," according to the Wall Street Journal.
Not only did Mr Morphis reportedly maintain a Facebook profile that was viewable by any member of the public, but he also was an active blogger and Twitter user, discussing a range of issues including company events.
According to the news source, Mr Morphis – under the Twitter handle of @theoldcfo – posted updates on board meetings and earnings reports.
"Dinner w/Board tonite. Used to be fun. Now one must be on guard every second," one tweet read.
The company's board of directors released a statement on May 14 (local time), confirming the termination of Mr Morphis' employment.
"We are disappointed by this situation but we expect our executives to comply with all company policies," chairman of the board of directors Greg Brenneman asserted.
"We acted immediately on Friday afternoon when we first became aware of the matter and have moved swiftly to replace Mr Morphis based on the findings of the investigation."
Surprisingly, the gaffe helped the business – rather than hindering it – with the retailer's Nasdaq-listed shares rising by more than three per cent in morning trade today (May 15).
The news comes as the US state of California looks to pass legislation to prevent employers from demanding access to employees’ online accounts.
Similar bills are currently being considered by other states such as Illinois and Michigan, while Maryland has already banned the practice.
Posted by Elise Ferrari