In the not-so-distant future, CEO candidates who would be king (or queen) may be selling their ability to manage not only profit margins and people, but also corporate
reputations. A Yankelovich study conducted on behalf of Hill & Knowlton and Chief Executive magazine reports that while the majority of today's boards do not tie executive
compensation to corporate reputation, board members are likely to take reputation management prowess into consideration in choosing a successor to the throne. Of the nearly 600
CEOs (Chief Executive readers) surveyed for the study, 43 percent said that a candidate's perceived ability to manage the company's reputation would carry a "great deal of weight"
in the CEO selection process. However, the percentage of believers sank to 32 percent among companies with annual revenues over $500 million.
Compensation aside, the issue of reputation is gaining prominence on CEOs' radar screens as the Internet redefines public discourse, and as floods of bull market-empowered
investors look for opportunities to dump dollars in socially-conscious companies. According to the study, the percentage of companies measuring their corporate reputations
doubled over the past year (37% in 1999 vs. 19% in 1998).
(Susan Suss, H&K, 212/885-0605)