As far as I understand:
- The situation when a CEO criticizes the company's products is called 'Ratner Effect' and such a situation is usually catastrophic for the company, bringing in on the verge of bankrupcy.
- Ratner himself did this when addressing the general public. However, Stephen Elop did this in an internal memo.
- Nonetheless Elop is still considered another perpetrator of the Ratner effect.
- This would mean that a CEO is not allowed to criticize the products of the company even when addressing only the company itself, and not the general public.
This is when I'm having trouble with understanding things.
Will financial markets always heavily penalize the company if the CEO criticizes its products even only internally and why?