Just as the president-elect can take away from a company’s market capitalization with an aggressive tweet, he also can add shareholder value following a publicized face-to-face encounter.
Many of the business leaders who have recently visited Trump Tower in New York or his holiday home in Florida know this all too well. They include Alibaba’s Jack Ma, Boeing’s Dennis Muilenburg, Oracle’s Safra Catz and Softbank’s Masayoshi Son.
All saw their company’s share price outperform the index on the day they paid a visit, according to an analysis conducted by CNBC. In fact, of the 11 corporate luminaries who tangled with Trump, just three saw their share price underperform. The median level of outperformance was 0.94%.
The analysis didn’t include group meetings, such as last month’s tech leaders’ summit, or meetings with former CEOs.
Explanations for the Trump bump aren’t easy to pin down because many factors can contribute to a stock’s performance at any given moment. But it appears investors have largely embraced the idea of CEOs getting the opportunity to put their case to Trump in person—and perhaps make a few pledges to keep him off their backs.
Boeing’s Muilenburg, for example, was able to use his meeting with Trump in Florida to cool concerns that the incoming administration would cancel an order for new Air Force One aircraft.
Alibaba’s Ma and Softbank’s Son both won the president’s praises for promising greater investment in the U.S., while BHP Billiton CEO Andrew McKenzie said he and Trump discussed how the mining giant could support the administration’s infrastructure spending plans.
Drug company bosses, meanwhile, currently gathered for an industry conference in San Francisco, are the latest to suffer Trump’s wrath. On Wednesday, during his first press conference as president-elect, he said the industry “was getting away with murder” by not having to bid for certain government supply contracts.
Perhaps it’s time for them to take a trip to New York.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
