Are most CEOs missing the company’s greatest value?
Economists in the US estimates that 85 percent of a company’s value is tied to its reputation. In an article by Leslie Gaines-Ross of Burson-Marsteller a while back she shows the immense value of a CEO’s reputation. The market capitalization is more or less depending upon this.
According to this research, a CEO’s reputation represents nearly 50 percent of the company’s reputation. Almost all of the financial analysts that were interviewed say that they would invest in shares based on the CEO’s reputation. It is also a key factor for the ability to attract and keep the valuable talents that contributes to the success of the company.
Every CEO are aware of the immense economical value of their reputation, but almost no one are aware of what their reputation really looks like.