Paid-for Pundit

PAID-FOR PUNDIT
[SOURCE: New York Post, AUTHOR: Tim Arango tim.arango@nypost.com]
Major U.S. newspapers often quote Jeff Kagan - regarded as one of the most influential telecommunications analysts - but invariably leave out the fact that he is paid by many companies in the industry to offer his comments to the media. His Web site declares: "Kagan is a 'fee-based' analyst. He gives interviews, analysis and insights to the media for free, and charges everyone else." Kagan declined to talk specifically about fees, but one source said a typical arrangement is for the company to pay $10,000 a month in exchange for his services. Kagan admits he is rarely asked by reporters if he is being paid by the companies he is speaking about. He said he is more frequently asked if he has an investment relationship with a particular company, and does not hold stock in the companies he counts as clients. "If they don't have me on retainer I will talk about them" in the media, Kagan said. "But my comments won't be that deep." The Wall Street analyst scandal has made it common practice for reporters to disclose investment banking relationships when quoting analysts from Wall Street firms. But when quoting analysts from other organizations, conflicts are rarely discussed. "It's not a securities issue," said an analyst at a Wall Street firm. "It's a question of public trust in journalism."
http://www.nypost.com/business/67923.htm