Investors are not good predictors of reputation value loss as seen in this graph comparing the equity performance of three companies with reputational crises. When normalized against respective peers, the over or under-reaction in the first few weeks is striking. At day 71, Crowdstrike, Boeing, and Southwest were, respectively, -20.8%, -28.1%, and -23% relative to the performance of the Nasdaq Cyber Index, FTSE|US Aerospace Index, and the Dow Jones US Airlines Index.
Boeing employees are striking for…more input into product safety. This labor action is a manifestation of lost reputation value. This labor action is a stark reminder that angry, disappointed employees are one of many expressions of a reputation crisis. Corporate leadership and governors must be mindful that that the long tail of reputation risk typically includes costly investor, regulator, and yes, employee actions.
Dwindling Reputation for Brand Safety at Elon Musk’s X. About one-quarter of advertisers plan to cut spending on social media site X, according to according to a new survey of marketers by Kantar.
32.9% of companies, including American Airlines and US Bancorp, have compensation clawback policies for reputation harm.
5-Minute Adventures in Risk & Resilience: The Podcast Reputation Insurance Forestalls ESG Risk at a $20bn Commercial Services Company: Protecting ESG Value Before Someone Else Challenges It.: In this episode, After Anheuser Busch’s incident with Bud Light, a risk executive realizes that his reputation risk insurance strategy also works for ESG risk. Click on the …
Qantas Airways Ltd. docked A$9.3 million ($6.1 million) from former Chief Executive Officer Alan Joyce’s final payout and announced a governance overhaul after a review partly blamed board and management errors for the carrier’s reputational crisis. This punitive action conforms to heightened expectations this year by both institutional investors and proxy advisers that companies should be clawing back CEO compensation for both reputational damage and for failures in risk management, even if financials do not have to be restated. This should help focus board attention to the factors that increase, protect, and restore reputation value including reputation risk intelligence, risk management, and reputation value insurance (aka, Side R).
Boeing Company reputation crisis day 183. Equity is down 41.7% to peers. Implications for manufacturers are illustrated in Steel City Re’s 16 April podcast: https://shorturl.at/kEfVL
Major U.S. carrier Southwest Airlines is blaming Boeing for its woes. Equity returns 40%< airline index since Dec 2022. N'est-ce pas?
Boeing Proxy Advisers Split Boeing Proxy Advisers Split. Directors’ personal reputational value depends on how well they meet stakeholders’ expectations for contributing to institutional reputation resilience by dutifully overseeing thoughtful risk management over everything that is mission critical. Naturally, that personal reputation value sinks when influential third party proxy advisers imply that directors’ further contributions …
Boeing’s Credit Rating on Cusp of Junk. Reputation risk is a going forward crisis of cash flow. $10bn bond offering cost Boeing $50mn more.