MAP Digital - Planners Webcast More Meetings

MEETINGS & CONVENTIONS
February 2001

A new ruling from the Securities and Exchange Commission requires any information released by publicly traded companies to be available instantly to anyone who wants it.

Nicknamed “Regulation FD” for fair disclosure, the ruling is forcing some meeting planners to add a live-broadcast element to events where information disseminated has the potential to affect their company’s stock price. No longer is it legal for tidbits to be leaked to a financial analyst in a private conversation. Such information now must be made available to the public immediately.

“In the past, brokers sponsored some meetings for their clients only. Now, with anything that has the potential to move stocks, companies are going to Webcast.”

“In the past, brokers sponsored some meetings for their clients only,” said Chuck Hill, director of research for Boston-based First Call/Thomson Financial, which gathers data for the financial industry. “What was said might seep out in bits and pieces. Now, with anything that has the potential to move stocks, companies are going to Webcast.”

The new ruling, which went into effect in October 2000, is forcing organizers to plan for content to be delivered in a suitable way for the Internet audience, said Mary Ann Pierce, president of New York City-based Events Digital [now president of MAP Digital, Inc.], which specializes in Internet and Networking services for meetings. “Planners have one more thing to do,” she said. “They have to think about what the experience will be for the Internet attendee.” For example, many PowerPoint presentations feature type that looks great on a big screen but can’t be read on a computer screen. Pierce now has to troubleshoot for such glitches before each event.

“There are also software and bandwidth issues,” she said. “We’re improvising and developing as we go. Hotels are still nightmares when it comes to connectivity.”

Pierce is helping companies like San Francisco-based J.P. Morgan H&Q (formerly Chase H&Q) to Webcast their meetings. For the firm’s 28th Annual Technology Conference, to be held in April, some 400 companies will make presentations — both to attendees onsite and those listening in over the Internet.

Santa Clara, Calif.-based Intel Corp. has changed a few policies since Regulation FD went into effect. “We are now widely publicizing our analysts’ calls and the date of our earnings releases,” said spokesperson Chuck Mulloy, who added that Intel started Webcasting analyst meetings in 1997. “They’re available to anybody,” he said, “as are the analyst meetings we have on conference calls.”

For now, some companies do not release any information other than earnings reports, rather than risk leaks. “They’ll come around when they see others are communicating successfully under Reg. FD,” said Hill of First Call. “I think it’s just a matter of time before all conferences that have financial impact will be Webcast.”

• SARAH J.F. BRALEY