The CEO's image remains one of the most significant factors in determining shareholder value. According the study "Maximizing CEO Reputation" by Burson-Marsteller (PRN,
Jan. 31), 45% of a company's image is tied to its CEO. That's up 14% since 1997.
A CEO's image is even more important among financial and industry analysts. Ninety-five percent said they would buy a company's stock based on the reputation of its leader. In
'97 only 84% felt this way.
The study, which surveyed 1,400 business influencers, found CEOs who could attract and retain top talent had the best reps. In '97 the winning attribute was caring for
customers, which tumbled to sixth in this year's study.
The media also play a major role in how a CEO is perceived. The channels that influenced respondents the most:
- Business magazine (82%)
- National newspapers (78%)
- Word of mouth (62%)
- Television (57%)
- Internet (17%)
As for what information should be heard from a CEO, respondents said:
- Long-term strategy (86%)
- Short-term strategy (40%)
- Financial results (34%)
- The company's mission and values (33%)
- New product/service announcements (25%)
The study also listed the common denominators of effective CEOs. Among them:
- Being stewards of their company's values and visions.
- Being able to communicate vision and strategy clearly, succinctly and consistently to both internal and external constituencies.
- Paying attention to word of mouth and online activity regarding their companies and themselves.
- Getting senior management to back the company's visions and goals.
- Making decisions in Internet time.
- Delivering the information stakeholders need from them.
(Marc Green, 212/624-4000)