The Staggering Significance Of CEO Reputation

CEO DOMO STOCK PRICE .com TEAM SERVICES REVENUE THE CEO'S GUIDE TO PRODUCTS GROWTH REPUTATION MANAGEMENT MARKETING As CEO, nearly half your company's reputation comes down toYOU. That's up more than 20% since 1997... (and WAY up from a few decades ago when people basically believed companies ran themselves.) (NO PRESSURE OR ANYTHING) Customers Care. Investors Care A LOT. According to research from Weber Shandwick, a CEO's reputation.. influences purchasing decisions. influences decisions to invest in a company. 60% 195% affects the company's reputation. influences decisions to recommend the company for a merger. 66% 94% is a common topic of conversation. determines whether to believe the company over the media. 30% 93% influences perception of a company as a good place to work. affects confidence in the company when stock is lagging. 88% 92% There's also this thing researchers Since there's an 80% chance your stock will drop 20% in a single month during BROUGHT TO YOU BY call a "communication dividend." CEOS with reputations for open, DOMO rich, deep communication saw share prices increase 10% during your tenure*, a solid reputation could be the difference between recovering...or not. the year after a crisis. * Oxford Metrica Risk Services Reputation Review 2012 Case in Point(s)... SOUR- STELLAR RUPERT MURDOCH MARTHA STEWART MARK ZUCKERBERG LANCE ARMSTRONG TIM COOK MARISSA MAYER Cook's employee approval rating is an astonishing 97% (higher even than his immortal prede- Stock in Martha Stew- art Omnimedia lost While Zuck's omni- present hoodie has become somewhat of an icon, it's also caught significant flack for being immature and inappropriate-espe- cially during the IPO. Having pre-emptive- ly(?) distanced itself from its founder, The 37-year-old was arguably hired based on her reputation for innovation, energy, and class. Stock price is up nearly 30% since she took over just 3 months ago. Years of scandal and coverup cost News Corp millions in hush money, millions more in damages, more than 90% of its value when its CEO LIVESTRONG was and founder was virtually unaffected when Armstrong was stripped of all 8 Tour and cost Murdoch at convicted of insider least one $12B lost deal. It cost others more. trading and sent to prison for 5 months. cesor's) and the company's valuation is higher than ever. de France titles earlier this year. BROUGHT TO YOU BY Only 14% of execs believe their CEOS have generally positive reputations 66% of executives at Fortune 500 companies DOMO Another 22% are believe that CEOS are non-committal perceived negatively Your Reputation (and its Effect on Stock Prices) May Outlive You. Stock prices swing (up or down depending on reputation) an average of 9.6% after the unexpected death of a CEO. Again, this effect was virtually non-existant several decades ago. So, How Does One Polish an Executive Image? 2 Interestingly, increasing shareholder wealth did NOT make the 3 4 5 Being Demanding High Ethical Standards Communicating a Clear Vision Maintaining a High-Quality Management Team Motivating and Inspiring Employees list. ..but it can't Believable hurt, right? Within the Company BROUGHT TO YOU BY Sources: CEO Weber Shandwick | Burson-Marsteller | KRCResearch | FTI Consulting | Oxford Metrica DOMO Forbes | WSJ | CNN Money | Fast Company .com INVESTORS CUSTOMERS