This article is an extract from Transmission Private’s monthly newsletter, The Lede, which tracks the world of reputation management for private clients. You can sign up for the newsletter on our website via the tab at the bottom of this article or by completing the form here.
Good morning. 👋 Welcome to this month’s edition of The Lede, themed on Senior Executives and Board Members. Pity the Board Members of a listed company. Many find themselves working harder to save their struggling businesses whilst increasingly subject to investor backlashes and public ire. The risks have never been so high. ⚠️
Why is it risky to be a Senior Executive? CEOs are being hit from all angles. The pandemic has forced many to completely reinvent their businesses. At the same time, many companies, such as JD Sports, AstraZeneca, and Deutsche Bank, have found themselves subject to high-profile investor rebellions on executive pay. Plus, executives at the tops of businesses increasingly find themselves subject to vicious attacks on social media.
Does this impact the rest of the Board? Undoubtedly. So far, these attacks have been (generally) restricted to prominent CEOs. Think Mike Ashley. But this toxicity will not stop there. It is starting to leak out to wider Board members. The highly-publicised supply-chain scandal at Boohoo.com recently saw almost all of its Board members, including NEDs, dragged through the wringer on social media and the newspapers.
How do you weather the incoming storm?
- Preparation is key. If you’re a Senior Executive or Board Member, hoping that you’ll fade into the background when a crisis (inevitably) hits will not cut the mustard. Fighting rear-guard action is never sensible, effective, or enjoyable. Reputational crises flare up overnight and before you know it, you may find yourself plastered over the news or, worse yet, social media.
- Independent advice. When a crisis does hit, too often Senior Executives and Board Members find themselves overly reliant on the company’s internal public relations team. The company’s PR team is there to protect the company... not you. Your interests might not be aligned. Get independent advice.
- Take control of your digital footprint. Ultimately, the best defence is a proactive, strategic offence. Take control of how you look online, especially within search results, today. If a crisis does hit, you will be in a better position than most to protect yourself. It has the added benefit of putting your best foot forward in good times too.
The takeaway... business has never been so risky for Senior Executives and Board Members. In a world of heightened blood pressure, putting in place sensible preventative measures is key to sleeping well at night. 🛏️
