The problem is there's a huge conflict of interest. He could easily bid up auctions he had no intention of winning, thus inflating prices. Another is he might be able to see the bids or domain watchlists of other bidders, which gives him a huge advantage.
I'm not saying he specifically bid up auctions, but there's a possibility. So it weakens trust with all parties involved. All the other major companies have some policy against this (not all). I would also figure that his compensation is tied to the performance of his division (domain auctions).
It's almost like saying, "I don't see the problem with that figure skater also judging the event."
