"Why do people hang on his every word?"

Bob - people hung on his every word because he was somewhat of an insider and interacted with the BOD and management.

If you interacted with the BOD and management on regular basis, I would hang on "your" every word so that I could gain some insight into the company. I would ask you what you thought of the board members and management and I would ask you you're opinion of their work. I couldn't ask these questions to someone who has had no interaction.