Q3 2016 CEO COMMUNICATIONS Tracking Report

Q3 2016 CEO COMMUNICATIONS

Tracking Report

Q3 2016 Report Overview

As CEOs increase their public profile, how do they communicate compared to their peers and CEOs in other sectors? What are they – or what could they be – talking about beyond earnings to positively impact stakeholder relationships and business goals? CEO communications play a crucial role in how the public perceives a company. This is why FleishmanHillard has been tracking CEO communications for the first three quarters of 2016. This report highlights the visibility, public statements and topics of 30 influential U.S. CEOs to identify dominant language, messaging, positioning and best practices. The selected CEOs were identified by using Fortune’s “Most Admired”, Interbrand’s “Best Brands” and the Fortune 500 to create a representative sample of top U.S. companies. Each CEO was tracked in top-tier media and other notable media placements as

well as their individual social channels.

Technology Healthcare Financial Services Manufacturing Consumer Goods

and Services

Apple CVS Goldman Sachs Boeing Coca-Cola

Google UnitedHealth Citigroup General Electric McDonalds

Microsoft Johnson &

Johnson JP Morgan Chase Ford Motor Disney

Amazon Pfizer Berkshire Hathaway General Motors Nike

HP Inc. Merck American Express Tesla Walmart

Facebook MetLife Southwest

AT&T AIG Delta Airlines

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Despite a decrease in earnings conversation among the individual sectors, earnings remained one of the priority topics of CEO conversation overall for the third consecutive quarter. There is also a consistently high volume of thought leadership conversation regarding the future of the technology and manufacturing industries as well as conversation regarding CSR programs.

Technology CEOs continued to speak about the widest variety of topics. They had a large portion of conversation regarding CSR, company milestones, global expansion and industry trends.

One interesting conversation trend is the growth of conversation surrounding the technology sector speaking about manufacturing — and the manufacturing sector speaking about technology. This can be attributed to products such as Facebook’s solar-powered plane and self-driving vehicles which are beginning to blur the lines between manufacturing and technology.

WHAT ARE CEOs saying?

WHERE ARE THEY saying it? For the first time this year, social media surpassed traditional media as the primary media type with a 23 percent increase in social conversation. This is largely driven by the tech and manufacturing sectors. Social media remains the primary platform for a wider variety of topics including CSR and thought leadership discussions. Traditional media is more focused on earnings and products but is beginning to see expansion into more non-traditional topics and industry trends.

WHAT ’S NEW in Q3? Overall, CEOs are beginning to comment on a wider variety of topics such as CSR, new products and world issues. In past quarters, earnings were the number 1 topic in every sector. Though it was still a prominent topic across all sectors, earnings only remains the top topic of the healthcare sector. Finance CEOs were significantly more active than in past quarters. They frequently commented on the U.S. election and, notably, have also started to discuss CSR and use more people-focused language. Consumer CEO global conversation decreased with no specific global announcements. They have been increasingly focused on CSR and crisis/issues communications. For the first time this year, Manufacturing CEOs have passed Technology CEOs in terms of volume. This can be attributed to the growing trend of technology and thought leadership in the manufacturing industry on topics such as autonomous vehicles and women in the workplace.

EXECUTIVE SUMMARY

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Q3 2016

All Sectors

TREND ANALYSIS • CEO conversation continued to focus mostly on

long-term business performance. However, earnings conversation has significantly decreased and we have seen a large increase in CEOs commenting on a wider variety of topics including thought leadership and CSR. There has also been an increase in political discussions as a result of the election.

• CEOs continued to frequently discuss their customers and the role of their products in the lives of their customers.

• Elon Musk was the most active CEO this quarter replacing Mark Zuckerberg, who was the most active in the previous two quarters.

• This quarter was also the first quarter this year where social media surpassed traditional media coverage. This is largely driven by the tech and manufacturing sectors.

• Manufacturing CEOs are continuing to increase their visibility quarter by quarter, while every other sector has decreased in activity in Q3.

Most Active Overall CEO: Elon Musk, Tesla

The following graphic illustrates the most commonly used words by CEOs (July 1- September 30, 2016)

44%

56%

Conversation by Media Type

Traditional

Social

11%

10%

10%

9%

7% 5% 5% 5%

4% 4%

7%

Conversation by Situation EarningsThought LeadershipCSRAnnouncementProductWorld IssuesBusiness StrategyCrisisNew ProductsPoliticsCompany MilestoneIndustry TrendsPersonalPartners/ M&AConference/EventWorld VisitPop CultureInterview/ProfileCompetitor

61% 23%

16%

Conversation by Context

Proactive

Neutral

Reactive

0

50

100

150

200

250

300

Sector Volume by Quarter

Q1 Q2 Q3

4

5

TOP CEOS

By Sector

Manufacturing:

Elon Musk,

Tesla

Technology:

Mark Zuckerberg, Facebook

Healthcare:

Alex Gorsky,

Johnson & Johnson

Financial Services:

Jamie Dimon,

JP Morgan Chase

Consumer Goods & Services:

Steve Easterbrook,

McDonald’s

Steve Easterbrook, CEO of Mcdonald’s, was the most active CEO of the consumer sector in Q3 2016 in both traditional and social media. He frequently spoke about product changes such as the expansion of their breakfast offering and their cage-free egg initiative. He also discussed employee wages and industry trends.

Jamie Dimon, CEO of JP Morgan Chase, was the most active CEO of the financial services sector in Q3 2016. Like other CEOs in the sector, he does not have a social media presence. He frequently spoke about the larger economic landscape. These topics included “Brexit”, fed interest rates, the strength of the US economy, and European regulators and banks. Notably, he also spoke publically about employee relations.

Alex Gorsky, CEO of Johnson & Johnson, was the most active CEO of the healthcare sector in Q3 2016. Like other CEOs in the sector, he does not have a social media presence. He provided commentary on industry-wide topics such as general health and wellness, drug prices and biosimilars. He also spoke publicly about earnings.

Mark Zuckerberg, CEO of Facebook, was the most active CEO of the technology sector in Q3 2016. While he was not the most active in traditional media, he was significantly more active on social media than others in the sector. He frequently spoke about company milestones as well as Facebook’s first successful flight of their solar-powered plane. He also consistently shared updates from his global networking tour.

Elon Musk, CEO of Tesla, was the most active CEO of the manufacturing sector in Q3 2016 in both traditional and social media. He was also the most active CEO overall. He frequently spoke about advancements in Tesla’s autopilot technology and the autonomous vehicles industry as well as long-term business/innovation goals including plans to explore life on Mars.

5

Coca ColaMcDonaldsDisneyWalmartNikeDeltaSouthwest

SECTOR VIS IB IL ITY

By company

6

Financial Services

Healthcare

Technology

Consumer Goods and Services

Number of Hits (combined digital and social)

Manufacturing

Goldman SachsJP Morgan ChaseCitiGroupAmerican ExpressBerkshire HathawayMetLifeAIG

AppleMicrosoftGoogleAmazonHPFacebookAT&T

0 20 40 60 80 100 120 140 160 180 200

BoeingGEFordGeneral MotorsTesla

Johnson & JohnsonCVSMerckPfizerUnited Health

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Q3 2016

MEDIA ANALYSIS

• While earnings continued to be announced

through traditional media, social media was the overall CEO communication channel of choice this quarter. Led by the Manufacturing and Technology sectors, CEOs took to social media to share thoughts on globalization and innovation, as well as to announce new products and partnerships.

• CEOs in the Manufacturing and Technology sectors were most active on social media, using platforms such as Twitter and LinkedIn to announce new products and CSR initiatives.

• CEOs in the more regulated Healthcare and Finance sectors were most active in traditional media, making earnings calls and discussing business strategy.

• Consumer CEOs were the most consistent across traditional and social media. Surges in social media use were a result of CSR initiatives taken after company crises.

0102030405060

Manufacturing

Traditional

Social

05

101520

Technology

Traditional

Social

0

5

10

15

20

Healthcare

Traditional

Social

05

1015202530

Financial Services

Traditional

Social

0

5

10

15

Consumer Goods and Services

Traditional

Social

0102030405060

Q3 Overall

Traditional

Social

Top 1 0 Top ics By Media Type and Sector

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Q3 2016

Manufacturing

TREND ANALYSIS • Similar to Q2, the manufacturing sector was more

active on social than most other sectors, driven by Elon Musk of Tesla and Mary Barra of General Motors. However, overall volume in the sector has increased since Q2 and Manufacturing is now the most active sector.

• This sector was the most active in announcements and thought leadership, driven by Elon Musk’s focus on autonomous vehicle technology and plans to explore life on Mars, as well as by Mary Barra being named Fortune's Most Powerful Woman. Their focus on CSR continues to decline since Q1 this year.

• The CEOs in this sector were largely focused on company and industry performance, and there was been a continued increase in focus on safety and global performance/globalization.

• Top stories focused on forthcoming car

technologies such as autopilot and production abilities.

Most Active Technology CEO: Elon Musk, Tesla

The following graphic illustrates the most commonly used words by Manufacturing CEOs (July 1- September 30, 2016)

0

20

40

60

80

100

Boeing GE Ford GeneralMotors

Tesla

Volume by Company

Traditional Social

30%

70%

Conversation by Media Type

Traditional

Social 67%

25%

8%

Conversation by Context

Proactive

Neutral

Reactive

26%

22% 17%

7%

6%

Conversation by Situation

AnnouncementThought LeadershipProductCSRCrisisConference/EventInterviewIndustry TrendsEarningsEconomyPoliticsWorld IssuesCompany MilestoneOther

8

Q3 2016

Technology

TREND ANALYSIS • For the third quarter in a row, Technology CEOs

were the most active across all media and significantly more active on social media. They are the only sector which is more active on social than in traditional media.

• Technology CEOs consistently comment on a

wider variety of topics including world issues, politics, and current events. Notably, they also had a large portion of conversation regarding CSR, company milestones and industry trends which was unique to this industry.

• New products and industry trends in technology are large conversation drivers in this sector as technology is rapidly evolving and leaders are expected to have a point of view and thought leadership platform on the future of the industry.

• Top stories in this sector included Apple’s product

launch, Facebook’s first successful flight of their solar-powered plane and Facebook’s global initiatives world networking tour.

Most Active Technology CEO: Mark Zuckerberg, Facebook

The following graphic illustrates the most commonly used words by Technology CEOs (July 1- September 30, 2016)

0

20

40

60

80

100

Volume by Company

Traditional Social

38%

62%

Conversation by Media Type

Traditional

Social

12%

11%

8%

7%

7% 7% 7% 7%

6%

6%

4%

Conversation by Situation

New ProductsCSRWorld IssuesWorld VisitCompany MilestoneEarningsPop CultureThought LeadershipIndustry TrendsPersonalConferenceProductPartners/ M&ACompetitorEmployeesExecutive ProfileGovernanceCompetitors

66%

26%

8%

Conversation by Context

Proactive

Neutral

Reactive

9

Q3 2016

Healthcare

TREND ANALYSIS • Healthcare CEOs were less active in Q3 than in Q2

but were still slightly more active than Q1. The significant volume last quarter was due to the failed Pfizer and Allergan merger and Johnson & Johnson’s strong Q2 earnings.

• CEOs in the healthcare sector still have no presence on personal social media channels.

• Earnings remained the priority conversation topic, however, there was much more conversation specifically from Pfizer and Merck regarding M&A.

• While it is still a topic of conversation, Healthcare CEOs are no longer focusing a large portion of their conversation on crisis and issues such as Obamacare and drug pricing. This volume of conversation on this topic has decreased by 50 percent.

• Top stories in this sector included presidential candidate Clinton’s plan to curb drug prices and Johnson & Johnson’s strong earnings.

Most Active Healthcare CEO: Alex Gorsky, Johnson & Johnson

The following graphic illustrates the most commonly used words by Healthcare CEOs (July 1- September 30, 2016)

0

20

40

60

80

100

Johnson&

Johnson

CVS Merck Pfizer UnitedHealth

Volume by Company

Traditional Social

87%

13%

Conversation By Media Type

Traditional

Social

38%

62%

Conversation by Context

Proactive

Neutral

Reactive

40%

13% 9%

9%

7%

5% 5%

4%

Conversation by Situation

EarningsAcquisitionInnovationBusinessPoliticsWorld IssuesObamacareDrug PricingPersonalRegulationWellness & PreventionWomen's Health

10

Q3 2016

Financial Services

TREND ANALYSIS • Finance CEOs included in this report

continued to have no social media presence in the third quarter of 2016. However, Finance CEOs were significantly more active in traditional media than they were in Q1 and Q2.

• Notably, political issues and world issues were a large topic of conversation this quarter for the first time this year. This is due to the Fed’s interest rates and Brexit.

• While Finance CEOs have typically been using more operational language, in Q3 there was an increase in CSR and people focused language.

• Top stories included company CEOs releasing statements on the economic implications of the U.S. presidential election and Brexit.

Most Active Finance CEO: Jamie Dimon, JPMorgan Chase

The following graphic illustrates the most commonly used

words by financial services CEOs (July 1- September 30, 2016)

0

20

40

60

80

100

Volume by Company

Traditional Social

92%

8%

Conversation by Media Type

Traditional

Social 51% 47%

2%

Conversation by Context

Proactive

Neutral

Reactive

29%

19% 13%

10%

8%

6%

5%

5%

Conversation By Situation

Business Strategy

Earnings

World Issue

Political

Fed Rates

Crisis

Personal

Charity

Endorsement

Innovation

Consumer's Rights

11

Q3 2016

Consumer Goods

& Services

TREND ANALYSIS • Consumer CEOs remained more active in

traditional media. However in Q3, there has been a marked increase (30 percent) in their social media presence. This is largely due to the fact that they were less active in traditional media and a significant increase in McDonald’s Steve Easterbrook’s Twitter activity.

• Consumer CEOs had a heavy focus on CSR, often commenting on current events, the environment and taking initiatives to improve customers’ health.

• The larger portion of crisis/issues communications in this sector was a result of a computer failure that forced Delta Airlines to cancel more than 2,100 flights over three days.

• Consumer CEOs also had a significant portion of conversation related to announcements such as new products, partnerships, governance changes, or company milestones.

• Top stories in this sector included McDonalds’ cage free egg initiative.

Most Active Consumer CEO: Steve Easterbrook, McDonald’s

The following graphic illustrates the most commonly used

words by Consumer CEOs (July 1- September 30, 2016)

0

20

40

60

80

100

Volume by Company

Traditional Social

66%

34%

Conversation by Media Type

Traditional

Social 53% 30%

17%

Quotes by Context

Proactive

Neutral

Reactive

29%

17% 17%

5%

4% 4% 4%

4% 4%

4%

Conversation by Situation

CSREarningsCrisisGovernanceThought LeadershipProductNew ProductCompany MilestoneFranchisesOlympicsM&APartnership

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REPORT OVERVIEW Technology Healthcare Financial Services Manufacturing Consumer Goods and Services

Apple CVS Goldman Sachs Boeing Coca-Cola

Google UnitedHealth Citigroup General Electric McDonalds

Microsoft Johnson & Johnson JP Morgan Chase Ford Motor Disney

Amazon Pfizer Berkshire Hathaway General Motors Nike

HP Inc. Merck American Express Tesla Walmart

Facebook MetLife Southwest

AT&T AIG Delta Airlines

CEO TRACKING METHODOLOGY COMPANIES ANALYZED

PLATFORMS ANALYZED SOCIAL: CEOs personal accounts on the following:

LinkedIn Twitter Facebook

TRADITIONAL: Top tier media including the following:

New York Times Wall Street Journal Washington Post Fortune Fast Company Bloomberg

Business Insider Financial Times CNBC MSNBC ABC News Huffington Post

USA Today Reuters Barron’s Forbes CNN

SPEECHES

Speech transcripts were pulled as available online from all outlets. These were used to inform data but were not counted as a media hit for consistency in outlet sample.

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WE ARE

fleishmanhillard

Elizabeth Borrelli Senior Vice President & Partner | Reputation Management & Crisis FleishmanHillard | 220 East 42 Street | New York, NY 10017 O 212-453-2392 | F 212-453-2020|E [email protected] Molly Kunst Project Manager, CEO Tracking Reputation Management FleishmanHillard | 220 E. 42nd Street, 11th Fl | New York, NY | 10017 O 212-453-2309 |E [email protected]