Falling trust in CEOs is a growing public relations problem with heavy consequences.
“Executives estimate that 44% of their company’s market value is attributable to the reputation of their CEO,” according to the study the CEO Reputation Premium by Weber Shandwick. The study also shows half of executives expect that CEO reputation will matter more to a company’s reputation in the next few years.
The rate of falling trust in CEOs has increased even as public relations and communications departments have become further integrated into company’s corporate structure. Here’s why that should matter to the average PR pro:
Falling trust affects company value
According to the Weber Shandwick study:
Executives report significant benefits that accrue from positive CEO reputation including attracting investors (87%), positive media attention (83%), and crisis protection (83%). Strong CEO reputation also attracts (77%) and retains (70%) employees.