The Huge Value Of CEO Reputation.
In spite of Richard Branson’s and Warren Buffet’s distinct focus on the value of their reputation, I would say that leaders are as unaware of their reputation as everyone else, maybe even more. Yet – there are great economic values at stake here.
Research from Weber Shandwick shows that 60% of a company’s market value is tied to it’s reputation and half of that represents the reputation of the CEO. A majority of investors also say that they base their investments on the reputation of the CEO and the expectations that it carries.
What is also missed in the employer branding discussions that are going on today is how the CEO reputation attracts the best talents. This will be crucial in the upcoming war for talents. I dare to say that I find no single strategy with a greater impact on the economy than working with reputation.