44% of a company’s market value is attributable to CEO reputation

Posted on
44% of a company’s market value is attributable to CEO reputation

This is a statistic that was presented by this firm in 2015. In 2018 it is all the more relevant.

The late Steve at Apple, Richard at Virgin, Bill at Microsoft, Sridhar at Zoho, Narayan at Infosys, Vijay at PayTM, Dharmesh at Hubspot, Arianna at Huffington Post and Thrive Global, Seth at Seth Godin, Gary at Vayner Media, Naval at AngelList, Chamath at SocialCapital.

What’s common amongst all of them?

It is really how the world relates to their companies / institutions via them. While of-course some of them have thousands of employees spread across the world, some of them have even exited and in case of Steve, sadly he is no more, still the world knows Apple as Steve. Every startup office even to this date has Steve Jobs’ posters.

In the noise of social media, the CEO/ Founder’s public narrative has become more ‘real’ than the brand of the company

I do not see anything unusual here. Human stories drive human stories. The fundamental pillars that make us the most evolved organisms in the solar system (unless there are other super intelligent life forms that get discovered), we will always be inspired and moved by human potential and vision.

So how should you craft a powerful public narrative?

Here are the top 5 elements that I tell my customers (the founders and CXO’s that I work with):

  • #1: Be you. No facade. No fluff. No jazz. People will see through you.
  • #2: Your domain expertise and who you are ; these are 2 fundamentally different ‘you’.
  • #3: Be the reason for people to believe that you will make them more successful.
  • #4: Being diplomatic and politically correct makes people forget you faster than ever.
  • #5: Be consistently around people (with videos and blogs) ; if you are not ; you are invisible.

Remember, people have the ability to discover the needle in the haystack. The one’s who want to, will discover you. Its upon you to inspire and win them.