Hoodie gate: Facebook CEO's attire a sign of 'immaturity'?
Financial analyst criticizes Zuckerberg for wearing a 'hoodie' at IPO road show presentation
By Sharon Gaudin, Computerworld | Business, Facebook, Mark Zuckerberg
May 09, 2012, 9:23 PM — Of all the things discussed and analyzed surrounding Facebook's upcoming initial public offering, perhaps the most surprising -- or just plain funniest -- is co-founder Mark Zuckerberg's hoodie.
Facebook launched a pre-IPO roadshow this week, meeting with investors in New York, Boston and other cities to pitch the company's stock to potential investors.
Zuckerberg was on hand to talk to investors at the first roadshow stop in New York on Monday.
Facebook CEO Mark Zuckerberg, wearing his classic hoodie sweatshirt, leaves New York City's Sheraton Hotel on Monday after making an appearance at the social network's IPO roadshow. (Photo: Reuters / Eduardo Munoz)
The young CEO was criticized by some attendees for showing up to speak to some of the country's most influential and buttoned-down investors in jeans and a so-called "hoodie" sweatshirt. It was definitely not the suit and tie that the financial types are used to seeing corporate executives wear.
In a videotaped interview with Bloomberg News, Michael Pachter, managing director with Wedbush Securities, said Zuckerberg's decision to wear his "signature hoodie ... is actually showing investors he doesn't care very much."
"He's going to be him and he's going to do what he's always done. I think that's a mark of immaturity," Pachter added. "He's got to show [investors] the respect that they deserve because he's asking them for their money."
He said that Zuckerberg's seeming lack of respect for the process tells him that the CEO might not be perfectly suited for the CEO post in a company that's expected to complete one of the biggest IPOs in tech history.
"He most certainly is a genius and he really has done something that no one else could do," said Pachter. "I think he is well suited to be the chief product officer, the chief user experience officer ... to decide every feature that goes in. I'm not sure he's the right guy to run a corporation and to answer to shareholders."
Zuckerberg didn't attend Facebook's presentation to financial analysts in Boston on Tuesday.
Dan Olds, an analyst at Gabriel Consulting Group, said Zuckerberg's absence from the Boston meeting shouldn't hurt the firm's IPO. The company's reputation, he said, is strong enough to sell itself.
He did suggest, though, that Zuckerberg should try to act more respectful to the people he hopes will fund his company.
"Some Wall Street types are muttering about Zuckerberg's attire being disrespectful and immature, and they could be right," he said.
"It could be taken as studied indifference, arrogance, or that he simply didn't think about what he was putting on. He was there to sell Facebook as a company and the first rule of sales is that you don't give your prospective customers any reason to be uncomfortable before you start selling them," Olds added.
Patrick Moorhead, an analyst with Moor Insights & Strategy, said that on the other hand, Zuckerberg could be getting the respect of other potential investors by not pandering to his audience.
"Zuckerberg is the 'mad scientist' of Facebook and the last thing anyone needs is him suiting up and faking it," Moorhead said. "Facebook wants to be all about being real, hip, young and cool. And suits just aren't. Zuckerberg's hoodie is about as famous as Steve Jobs's black turtleneck and blue jeans. It would be ill-advised to change for a financial roadshow."
Brad Shimmin, an analyst at CurrentAnalysis, said there's a standard uniform when it comes to the financial world. And old-school suit-and-tie types may not look so kindly on the wonder kid who balks the system and doesn't dress in a manner they think is mature and respectful.
"For better or worse, that's his decision. What matters is how investors respond to that decision," said Shimmin.
"If a police officer shows up to work in shorts and a t-shirt, she will likely risk losing the respect otherwise gained from the uniform. It is the same with the leader of a globally important brand such as Facebook. It doesn't make him any less professional or capable, except perhaps in the eyes of those he wishes to influence," Shimmin added.
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