Cost of Reputation Loss

September 10, 2025

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Personal attacks on directors are now a governance weapon

Personal attacks on directors are now a governance weapon – amplified by activists, media, and social platforms. Traditional protections (proxy advisors, board slates, collegiality) are eroding. Reputational harm can drive board turnover, litigation, and long-term career damage. Emerging responses: (1) Hazard pay for directors; (2) Reputation insurance alongside D&O coverage. Oversight of reputational risk is mission-critical. Boards must exercise foresight: how is reputational risk being integrated into risk management, who is responsible, and how is the company mitigating it?

June 5, 2025

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Two recent lawsuits alleging director and officer liability have also called for board refreshment because of culpability.

Two recent lawsuits alleging director and officer liability have also called for board refreshment because of culpability. This emerging strategy to pressure directors to settle exposes directors to going-forward personal financial and reputation loss that is rarely covered with conventional liability insurance and is not yet widely covered with reputation insurance.

June 2, 2025

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Another Liability Lawsuit Seeks to Tarnish Directors’ Reputations

Plaintiffs suing Wells Fargo, pointing to firm’s history of reputation-damaging scandals, have asked the judge for permission to nominate three members of the bank’s board. Demands for board refreshment in shareholder lawsuits could become “a standard pressure strategy because it exposes directors to uncovered personal financial loss,” Kossovsky said, adding that such a loss would not be covered with conventional liability insurance because it is likely out of scope, “and not with parametric reputation insurance, because most boards still don’t carry it.”

May 14, 2025

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Disappointed stakeholders—the product of missed expectations and a feature of reputation damage—are a force to be reckoned with.

Disappointed stakeholders—the product of missed expectations and a feature of reputation damage—are a force to be reckoned with. Adidas chair in re-election fight as investors plot revolt. DWS, the asset management arm of Deutsche Bank, told the Financial Times that it would vote against Rabe’s re-election as chair of the German sportswear company’s advisory board at the annual meeting on Thursday because of a “repeated breach of expectations”.

May 8, 2025

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Pittsburgh Pirates Reputation Damage

PR nightmares mount for Pirates, who can’t win — on or off the field. […] Chatter about the team on social media might be loud, but that does not necessarily make it a concern, according to Nir Kossovsky, CEO of Steel City Re, a Pittsburgh-based reputation risk management and insurance firm. […] When a team’s reputation takes a grave hit, Mr. Kossovsky said, relationships with all stakeholders are at risk. The city or state could roll back any tax benefits or waivers they offer the franchise. The Pittsburgh Sports and Exhibition Authority, which collects $100,000 in base rent from the Pirates for PNC Park each year, could raise that rent or amend the lease. Vendors could pull out of contracts. Loans could become more expensive.

April 28, 2025

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DEI-linked stock price drop lawsuits may lead to painful board exit conversations and impair board member's' personal reputations.

DEI-linked stock price drop lawsuits may lead to painful board exit conversations and impair board member’s’ personal reputations. “Companies are going to be scrutinized for the statements and positions that they’ve taken in these areas,” said Troy Harder. “I wouldn’t be surprised to see a lot more lawsuits like this.” […] “(H)ow companies monitor risk matters just as much as how they disclose it,” Jennifer Wu, an assistant professor of finance at the University at Buffalo’s School of Management, told Agenda. That’s why Steel City Re developed a comprehensive reputation risk monitoring, management, and insurance solution.

February 7, 2025

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Reputation risk: financial damage from emotional stakeholders who are angered, or worst, feel betrayed. “We laid out the strategic and budget plan for 2025 expecting that American products, including American whiskey, will be less accepted by those countries outside of the US because of first, tariffs and, second, emotion,” said Takeshi Niinami, chief executive of drinks giant Suntory Holdings.

Reputation risk: financial damage from emotional stakeholders who are angered, or worst, feel betrayed. “We laid out the strategic and budget plan for 2025 expecting that American products, including American whiskey, will be less accepted by those countries outside of the US because of first, tariffs and, second, emotion,” said Takeshi Niinami, chief executive of drinks giant Suntory Holdings.

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