Many of the CEOs that we advise feel initially uncomfortable dedicating time to develop their own Positioning and Presentation.
Until we show them the data.
Our own proprietary research places Management Credibility as one of the most critical criteria for judging the value of companies – across both buy-side and sell-side analysts.
And a wide variety of external sources consistently endorse the importance of company leadership.
Here are just eight examples:
- ‘Management Credibility’ is the No.1 driver of Investment Decisions among the Buy-Side, and the No.1 influence on Recommendations for the Sell-Side.
- In a well-regarded research study, CEO Perception alone influenced, on average, 31.5% of every Analyst’s Investment Decision.
- Analysts say that their confidence in the effectiveness of a Corporation’s Leadership will justify them paying a Price Premium of 15.7% on the Company’s Stock.
- Equally, those same Analysts say that perceptions of Ineffective Leadership would lead to them Discount the Stock Price by 19.8%.
- Together, that Premium and that Discount mean that: perceptions of a Corporation’s Leadership will result in a 35% Variance in their Company’s Stock Price.
- Earlier research carried out by one of the world’s most respected specialists in CEO Value discovered through regression analysis that – on average – a 10% improvement in a CEO’s Reputation creates a 24% increase in Market Cap.
- Yet another recent Study found that ‘Positive CEO Media Coverage’ results in an additional 7-8% in their Corporation’s Stock Returns.
- In one more Global Research Study, Company Employees in 19 countries variously estimated that their CEO’s Reputation accounts for somewhere between 25-60% of their Corporation’s Market Value.
There are many, many more reasons for every CEO to think carefully about how they Position and Present themselves to all their Stakeholders.
But the most important is this:
If they don’t, they are failing their Shareholders.
Reputation is a Research and Strategy Consulting Firm that advises CEOs and Boards of Public Companies how to achieve Fair Valuation for their Company’s Stock.