Businessweek article on January 02, 2013 by Roger Martin
Chief executive officers and directors should make a New Year’s resolution to stop providing earnings guidance, abandoning the practice forever. If they don’t, regulators should resolve to do it for them. Regulators should repeal the safe harbor provision of the Private Securities Litigation Reform Act, which has enabled executives to provide guidance without fear of being sued.
It is possible. On Jan. 1, 2009, Paul Polman took over as CEO of Unilever (UNA), then the 60th-largest market-capitalization company in the world, valued at over $100 billion. Polman immediately told the capital markets that Unilever would no longer offer earnings guidance...
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