Perceptions of a Company’s CEO can add 35% to its Share Price.
Many of the Asian CEOs that we work with feel uncomfortable spending time working on a strategy for their own Brand Positioning and Presentation.
Until we show them the data.
Here are just eight facts that will make any CEO think twice:
- ‘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.
At Reputation, we provide personal, confidential counsel to CEOs of listed Corporations, advising them how to Position and Present themselves to their most important Stakeholders.
If you are a CEO of a listed Company, and you would like a confidential discussion about how to manage your own Positioning and Presentation, please get in touch with us either via our website or by email to Contact@TheReputationPartnership.com – and we will reply to you by return, in total confidence.