Industrials & Technology

June 13, 2024

The last lap of Southwest's 18-month reputation crisis. Activists investors! Link to a podcast on the meaning of all this for your company.

And now, the last bits of the tail of a reputation crisis. “Hedge fund Elliott Investment Management announced yesterday that it has a $1.9bn position in Southwest Airlines, comprising 11% of the company’s shares. It issued a letter to the airline’s board, calling for new directors, a new CEO, more executives from outside, and a comprehensive business review. In its letter, Elliott wrote, ‘While Southwest has a proud history, that history is not an argument for supporting poor leadership and sticking with a strategy that no longer succeeds in the modern airline industry.’” Relevant podcast on what this means for your company: https://5-minute-aventures-in-risk-resilience.zencast.website

May 18, 2024

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 …

May 18, 2024 Read More

February 5, 2024

Nir Kossovsky, CEO of Steel City Re, an insurance provider for reputational risk, said his firm’s Reputation Resilience Monitor for Tesla indicated little concern about Musk’s pay package, but real concern about the firm’s cost of operations, declining net income and future prospects. […] “However, should stakeholders become excitable, then any incident — even another round on the pay package — could trigger a shift in their expectations from fandom-level support to anger and disappointment,” he said.

Nir Kossovsky, CEO of Steel City Re, an insurance provider for reputational risk, said his firm’s Reputation Resilience Monitor for Tesla indicated little concern about Musk’s pay package, but real concern about the firm’s cost of operations, declining net income and future prospects. […] “However, should stakeholders become excitable, then any incident — even another round on the pay package — could trigger a shift in their expectations from fandom-level support to anger and disappointment,” he said.