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Management Consulting

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CEO Capital Has A Direct Positive Impact On A Company's Reputation And Success

According to Burson-Marsteller's research, CEO capital contributes heavily to how companies are perceived today. This landmark CEO reputation research was initiated in 1997 and updated in 1999 and 2001. Burson-Marsteller solicited responses from five different stakeholder groups in the United States: CEOs and chairpersons; vice presidents and other senior executives; financial analysts and institutional investor; the business media; and government officials. These varied and essential audience's from CEOs to media to government officials  all agree that CEO capital contributes greatly to a company's reputation. The impact of CEO capital is no minor sideshow to the main event. Rather, it occupies center stage.

In 1997, when Burson-Marsteller first polled U.S. business influential, the CEO's average estimated contribution to a company's reputation stood at 40 percent. In 2001, this figure jumped to 48 percent, an impressive 20 percent increase. If nearly half of a company's reputation is attributed to the standing of the CEO, common sense dictates that CEO capital is a currency worth investing in, accumulating, and cultivating.

The great importance attached to CEO reputation reaches far and wide. In 2001 Burson-Marsteller's research obtained similar results among business opinion shapers in the United Kingdom (48 percent of a company's reputation is attributed to the CEO), Australia (54 percent), and Germany (64 percent). Even among consumers, a segment often considered less informed about business matters, the CEO effect remains strong. In both the United States and United Kingdom, a 1998 poll of the general public indicated that a CEO's reputation accounted for 48 percent of a company's reputation. At first perusal, the similarity of these trans- Atlantic results appear surprising. In 1997, the typical response outside the United States indicated that the significant role played by CEO reputation was strictly an American phenomenon. This is evidently no longer the case. CEO capital now matters the world over. 

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