A big problem with speaking income is that, whatever the use of the money—the mortgage, the kids’ college fund, better bottles of wine—the journalist is precisely aware of the source. Even in the case of speaking fees donated to charity, a US citizen is eligible for a tax break, and the appreciation and good works of the group on the receiving end of the donation are also, in a way, things of value to the giver.
And such fees surely have an impact on coverage, if not necessarily an obvious or insidious one. A financial journalist who has been paid for speeches by Wall Street firms told me that he would never write a story about any company that has paid him a fee. Great, except that the more speaking he does, the more he will be restricting his range of coverage. Unconscious self-censorship could be a factor, too, as journalists who enjoy Wall Street’s money might come to feel more simpatico toward their benefactors’ perspectives on various issues. It’s a pretty typical human reaction, after all. The New York Times reported recently that doctors who take money from drug makers often are more willing than doctors who don’t to prescribe drugs in “risky” ways. Why should journalists be any more immune to this than physicians are?
For journalists who take money from Wall Street firms but don’t cover financial issues, the conflict is less apparent. Who cares if a celebrity journalist gets paid to serve as marketing bait for a private-equity firm trolling for new investors? My objection is perhaps more aesthetic than ethical: It’s a little cheesy for a journalist to serve such slick, mercenary purposes. As for big-name journalists who help financial firms buff the brand, that work is better left to the likes of Sam Waterston, the celebrity pitchman for TD Ameritrade.
My focus here is on Wall Street because it is such a prominent source of speaking income, and because of its salience in today’s news. But the same questions and objections apply to the health-care sector, also a major source of funds, and any other industry the press covers. The damage is to reputation—to the fee-taking journalists and more broadly to journalism itself. “I hate the idea of these guys doing it,” a veteran financial journalist, who doesn’t give speeches for money, told me. “Everyone is wheeling and dealing in this culture. Even a perceived conflict of interest ruins it not only for the journalist, but for journalism. Reputation is everything.”
That’s harsh, but it seems telling that, with the notable exceptions of Gillian Tett, Michael Lewis, and Martin Wolf, most of the journalists I tried to talk to about their speaking appearances resisted comment, or would only talk anonymously—which is a little ironic. One prominent scribe pleaded not to be mentioned at all. (Sorry, no passes.) I still have the bite marks on my neck from a telephone conversation with another who demanded to know whether he was the target of a “hostile inquiry.”
The good news is that leading news organizations have in place strict policies to limit the practice of taking fees for speeches or even to ban it entirely, on the premise that the practice is inherently problematic.
At The Wall Street Journal, Robert Thomson, who was hired as managing editor in 2008, has set the gold standard, decreeing a flat ban on paid speeches. Staff under his watch can’t take fees for speeches from any source, profit or nonprofit—not even if they give the money to charity—and they can’t take payments for travel or other expenses. “If we think a speech is important for us to do, we do it on our dime, to avoid any possible conflict,” says Alan Murray, a deputy managing editor at the paper. Editorial-page staffers are permitted to take speaking fees from nonprofits but not from for-profits.

The idea that anyone would pay Ferguson, the USA-is-on-the-rise/wait-no, we're-an-empire-in-decline hack any money at all to declaim his daft and ever-shifting Big Thoughts, is itself kind of the scandal.
Then again, hedgie numbskulls who think a proper British accent=intelligence probably deserve to have their collective eyes ripped out this way.
But wasn't this supposed to be a story about journalists?
#1 Posted by Edward Ericson Jr., CJR on Mon 19 Mar 2012 at 01:59 PM
Sorry, but this seems like journalism ethics 101. Speaking for fees to industry groups you cover is unethical. Gretchen Morgenson has got it right -- she'll accept paid speaking gigs at universities but if she speaks to vetted industry groups, she does it for free. End of story. I thought we already went through this back in the 1990s when the Chicago Tribune's Jim Warren smoked out and shamed prominent journalists doing paid speaking gigs. How soon we forget. Kudos to Robert Thomson of the WS Journal and to CNBC for flatly barring their reporters from doing paid speeches.
#2 Posted by Harris Meyer, CJR on Tue 20 Mar 2012 at 08:30 PM
Er... this all seems a bit po-faced to me - what about all the lunches, dinners, sporting events, even concerts that journos regularly attend in order to "build relationships" with execs from all industries?
#3 Posted by Brian, CJR on Wed 21 Mar 2012 at 01:35 AM
There's a world of difference, Brian. As a journalist, I attend panels, business dinners, cymposiums and other events where there is a lot of fancy food and other comforts. I do it as a part of my work to see the interactions and get more context for the information I get. I can easily go without this kind of 'reward' and, in fact, often resent it and would much rather just do interviews in a cafe or on the phone.
It's a -very- different level of commitment if I'm getting real cash on a regular basis for services. For one thing, suddenly my car, the payments on my new apartment and other solid things now depend on this person/company being happy with me and not closing the money tap. Also, after such an engagement you are linked with you customer in a very business-like way: you have become a partner, not a watcher.
#4 Posted by Brazilian Rascal, CJR on Wed 21 Mar 2012 at 10:43 AM
IT was OBVIOUS that she was a shill for Wall Street!!!!!!!! NO DOUBT!!!
Glamorous...NOT ..at ALL?!?!?
I hated her lisp!
#5 Posted by Pat, CJR on Thu 22 Mar 2012 at 09:11 AM
This explains some of the happy talk in the news media. Corporate ownership of the same media explains the rest. Prominent rewards to individual media content creators makes it easy for all concerned to 'go along, get along'.
The outcome is an America corrupt as an Ottoman satrapy.
#6 Posted by steve from virginia, CJR on Thu 22 Mar 2012 at 11:28 AM
gee - imagine a women having the cheek to do what men having been doing forever & i mean forever....
#7 Posted by susie m, CJR on Sun 25 Mar 2012 at 10:54 PM
Re: Gillian Tett's book Fool's Gold "skewered the financial industry"
Hardly. I found it to be a hagiography of JPMorgan.
#8 Posted by Knute, CJR on Sat 9 Jun 2012 at 12:18 AM
This article is interesting but doesn't go far enough.
Tett and the entire FT, as much of the financial press in London and New York, have been more than friendly to the financial-industry types who pay their speakers fees, buy their ads, give them scoops, write their big-name guest essays, make them feel important.
Tett and many of the other people in the article have editorialized again and again for maximum bailouts and bazookas (still doing it re the euro), ventriloquising their hedgie and other Wall Street friends who love nothing better than to offload their bad paper and get a good ride on asset price inflation. Of course the FT speaks for the City. Duh.
#9 Posted by scott, CJR on Sun 12 Aug 2012 at 04:39 PM