New Research Highlights the Value of the CEO ‘Brand’ in Withstanding the Negative Impact of Crises

Research Indicates CEOs Who Had a Track Record of Communicating Helped Protect as Much as USD$260 Billion More in Shareholder Value in the Initial Stages of the COVID-19 Pandemic

Vocal CEOs Lead Over 80% of Companies with Fastest Growth Since 2015

All Female CEOs Leading Fastest Growing Companies Are Consistent Communicators

BRUSSELS, Belgium, July 13, 2020 (GLOBE NEWSWIRE) -- New research by the Strategic Communications segment of FTI Consulting, Inc. (NYSE: FCN) suggests that companies whose CEOs embody strong leadership, are publicly vocal, and have a visible brand better withstood the initial negative share price impacts of the COVID-19 pandemic. During the early stages of the crisis, these vocal CEOs were able to protect USD$260 billion in additional shareholder value for the companies in the study.

While active communication is only one of the many factors influencing corporate performance, this success stemmed from brand equity gained before the COVID-19 crisis. In fact, 81% of the fastest growing companies had a vocal or outspoken CEO. Of these 81% of CEOs, nearly 40% of them embraced the growing importance of ESG and “stakeholder capitalism,” which translated into greater stakeholder confidence during the COVID-19 pandemic. These “stakeholder CEOs” – those who spoke about issues not directly related to their business’s bottom line – outperformed their industry peers by an average of 3.75%.

To come to these conclusions, FTI Consulting analysed the CEOs of the top 100 companies that had the highest share price growth rate between 1 January 2015 and 31 December 2019 across three indexes: The S&P 500, FTSE 250 and Euro Stoxx. The research team monitored and observed mentions of the CEO in the news and on social media to see if quotes, statements or presentations or panel discussions made by the CEO generated a peak in discussions or news coverage about him or her. The research team also assessed whether CEOs had a social media presence and if they were active on social channels. After noting the findings, researchers assessed the share price performance of the companies during part of the global COVID-19 pandemic, from one week before the World Health Organisation declared a pandemic (4 March 2020) to 11 May 2020. The detailed description of the methodology can be found in The CEO Brand and Its Impact on Business.