CEO Reputation Management – CEO Tips and Examples

CEO Reputation Management - CEO Tips and Examples

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Reputation Management Tips for CEO’s

A company’s CEO position plays an integral part to a company’s reputation. Statistically a 20% increase of a CEO’s reputation can impact a company’s brand since 1997.

Impact of a CEO’s Reputation

Recent research shows that a CEO’s reputation can influence purchasing decisions by customers by 60%. For investors, this is drastically increased to 95% for decision makers to invest in the company. 66% of customers determine a company’s reputation based on that of the CEO representing it. However, 94% of investors are influenced equally when it comes to recommending a company for a merger.

Consumer perceptions are 88% influenced by the CEO’s reputation when viewing the company as a good place to work with 30% statistics showing that the reputation of the CEO is a common topic of conversation when reflecting upon the individual company. 93% of investors determine whether to believe to the company over the media leaving the company at a high risk for investment opportunities. Additionally, 92% of investor confidence is lagging with company stock.

The reputation of a CEO can influence public opinion as seen with communication dividend when share prices increase 10% during the year after a crisis if the CEO shows open and rich communication to the public. This rages against the 80% chance in times of crisis that a 20% drop will occur in a single month. As a result, the reputation of the CEO can make the difference between a company recovering or not.

Case Studies

To further substantiate the facts above, here are some recent case studies with famous CEO’s who faced their own reputation crisis with the public.

Rupert Murdock
Years of scandal and cover ups cost News Corp millions in hush money and damages. It personally cost Murdock at least one $12 billion dollar deal and cost others more.

Martha Stewart
When convicted of insider trading and sent to prison for five months, stock in Omnimedia lost more than 90% of its value due to the convicted founder and CEO.

Mark Zuckerberg
During Facebook’s IPO, Zuckerberg’s icon hoodie drew significant flack for being immature and inappropriate.

Lance Armstrong
Stripped of all 8 Tour de France titles, LIVESTRONG was virtually unaffected having pre-emptively distanced themselves from their founder.

Tim Cook
Since taking over, Cook’s employee rating is an astonishing 97% higher than his predecessor’s with the company valuation higher than ever.

Marissa Mayer
This 37 year old was hired based on her reputation for innovation, energy, and class. Stock price increased nearly 30% after only taking over 3 months previously.

Popular Beliefs

Seeing the thin lines that CEO reputations are left hanging from, 66% of executives at Fortune 500 companies believe that CEOs are perceived negatively with another 22% believing that they are non-committal. Of these statistics, only 14% of executives believe their CEOs have generally positive reputations.

The importance of CEOs reputations are not to be underestimated, effecting stock prices for a period of time that may outlive you. After the death of a CEO, stock prices can fall or increase by an average of 9.6% after the unexpected death. This was unheard of decades ago.

5 Ways to Polish your Reputation

1. Be believable.
2. Demand high ethical standards.
3. Communicate a clear vision within the company.
4. Maintain a high quality management team.
5. Motivate and inspire your employees.