It seems that it could boil down to a complete lack of trust in any company executive that doesn’t “get” social media. According to employees surveyed, 82% of them have more trust in a CEO that engages in social media.
That would suggest that an open, transparent CEO–one who is not afraid to be in the trenches–lifts employee moral and also the bottom line:
The majority of BRANDfog survey respondents (77%) are more likely or much more likely to buy from a company whose CEO uses social media to clearly define company values and leadership principles. And 94% said C-suite social media participation enhances a brand image.
Now, this is all well and good, so long as your CEO is not a jerkface or likes the taste of his own feet.
(hat tip to @Cord)