Good leadership adds 35 percent to company value

29.03.2012
Companies with good leaders are worth up to 35.5 percent more than those with weak , a survey revealed on Thursday.

Analysts said they award an average premium of 15.7 percent on the share prices of companies with effective leadership and levy average discounts of 19.8 percent for those with weak leadership.

This adds up to an "astonishing" gap of 35.5 percent between companies with good and bad leadership, Deloitte's The leadership premium report said.

The authors of the study interviewed around 500 stock market analysts in the UK, the US, China, India, Japan and Brazil.

The report found that, in addition to financials, analysts look at corporate governance, leaders' public and press opinion ratings and their personal qualities such as honesty and integrity.

also found that 80 percent of analysts base their opinion on a leader on face-to-face meetings.