CEO Reputation: A Key Factor in Shareholder Value

Abstract

You need not look further than the morning newspaper or evening news to observe the tremendous influence of CEO reputations on shareholder value. Whether it is through a stock transaction, a response to a crisis, or the creation of a best-in-the-industry talent pool, a CEO's reputation plays a significant role in determining how both internal and external audiences evaluate — and ultimately respond to — a company. This article will discuss the greater impact of CEO reputation, in light of the increased expectations of stakeholders, the proliferation of communication channels, and the demand for a broader content of messages that CEOs are delivering to their constituencies. Combined, these factors are expanding the role of today's CEO as we know it, making CEO reputation an even more critical ingredient to a company's success.