How Leadership Shapes Market Value

Lynn Smith, CEO, Lynn Smith Media & Communications. Advisor/Coach, Speaker, and Former News Anchor for TODAY, NBC, CNN Headline News.

Let’s talk about something that’s not just nice to have, but an absolute game-changer: CEO confidence. We’re not just talking about giving a good pep talk to the team—this is about making investors believe, customers buy in and markets respond. Research from FTI Consulting makes one thing crystal clear: When a CEO shows up with confidence, it can directly impact the company’s valuation.

COVID-19: A Masterclass In Leadership Under Pressure

During the early days of COVID-19, the world was in chaos. But guess who helped steady the ship? Confident vocal CEOs. FTI’s study shows companies led by these leaders added as much as $260 billion in shareholder value. Yes, billion with a “B.”

What made these leaders stand out? They didn’t just talk numbers—they talked about what mattered, from employee well-being to global challenges. Leaders who leaned into ESG (environmental, social and governance) issues and stakeholder capitalism performed even better, beating their peers by an average of 3.75%. People don’t just want a CEO who’s good at the bottom line; they want one who cares about the big picture.

I was guiding a CEO through the COVID-19 pandemic at the start of my company, which now trains leaders of billion-dollar companies to communicate with clarity and confidence to drive measurable business results. As many of us did, he struggled with the very real fact that we did not know what the next months, week or even day would look like. It is hard to be confident when you do not know what is going to happen. It’s not impossible, though. What we did was craft a very honest message to the company that we did not have all the answers—no one did—and if we tried to pretend we did, we would lose a tremendous amount of trust.

We did communicate the confidence of the leadership to have the agility and capacity to navigate the absolute uncertainty of it all. Think of your CEO as the captain of the ship. You cannot possibly prevent to unforeseen storm, but you can put a captain in place who is skilled, experienced and calm in those storms to get through it. That was the core message we needed to communicate.

Then we had to ensure the body language communicated that confidence as well. I see this all the time as an outsider, watching CEOs on major networks, and I can tell their communications teams armed them with great talking points and important messages, but unless he or she can also deliver that message nonverbally with confidence, it will fall flat.

Here’s something fascinating that changes how we think about communication. Back in the 1950s, a researcher named Albert Mehrabian discovered something that still blows my mind when working with leaders today—only 7% of your message’s impact comes from the actual words you use. The rest? It’s 38% how you say it—your tone, your energy, your conviction—and a whopping 55% is all about your body language, facial expressions and presence.

Think about that for a second. When you’re communicating something important, people aren’t just hearing your carefully crafted words—they’re reading your entire presence. Are you owning that conference room? Are you connecting with your audience? Are you letting that Brain Bully (that inner critic saying you are going to screw this up) affect your posture and tone? This is why authentic communication is so powerful—when you’re truly aligned with your message, your entire presence amplifies it, not just your words.

Confidence: Not Just For Crises—A Growth Strategy

Here’s the kicker: It’s not just during tough times that confidence pays off. Over a five-year period, vocal CEOs led 81% of the fastest-growing companies globally. Let that sink in. Whether the market was soaring or stumbling, these leaders stayed visible and vocal—and it worked.

The 3 Ps Of CEO Confidence

So, how do you build CEO confidence? It’s not about faking it until you make it. It’s about the three Ps: preparation, purpose and promise. Let’s break it down:

1. Preparation

Confidence starts with being ready. CEOs who excel aren’t just prepared for questions—they’re prepared to deliver. Whether facing a press conference or speaking on a podcast, knowing how to grab attention, deliver insights and conclude with impact is key. In a coaching session, I worked with a leader who dreaded public speaking. She felt overprepared by her comms team, but we drilled down the messaging. By practicing a framework we developed together—and my very specific yet intentional way of crafting valuable takeaways—instead of being overprepared, she felt confident about which core messages she wanted to share.

2. Purpose

Every great CEO knows their “why.” A clear sense of purpose ensures messages resonate. It’s not just about numbers; it’s about showing why something matters. I once coached a leader to clarity by visualizing their ideal audience—a specific person they wanted to impact—and tailoring their message to connect on a deeper level.

3. Promise

Confidence isn’t about perfection—it’s about focus, so this is a promise that you will not sweat the small stuff but be committed to working on the big stuff. Staying calm under pressure sends a powerful message of trust and stability. I helped another leader, who used to overanalyze every word in interviews, develop a strategy to focus on three key points they could always pivot to. This allowed them to stay on message and maintain a relaxed, relatable presence.

Why It Matters

Here’s the truth: Confidence isn’t just a trait—it’s a strategy. A confident CEO is more than a figurehead; they’re the driving force behind trust, innovation and growth. They inspire their teams, calm their stakeholders and send a powerful message to the market: “We’ve got this.”

The research doesn’t just highlight the correlation between vocal leadership and valuation—it proves it. But here’s the best part: Confidence isn’t innate; it’s a skill you can hone. With preparation, purpose and the right guidance, any CEO can amplify their impact and position their organization for lasting success.

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