Reputations of listed companies on the decline: Kone, Ponsse, and Gofore took the top spots
Listed family-owned companies took the top spots and received significantly higher reputation ratings from individual investors than other publicly traded companies, according to T-Media’s Reputation&Trust. Individual investors named UPM’s Jussi Pesonen as the best CEO among publicly traded companies.
In collaboration with the Finnish Shareholders’ Association and the Finnish Foundation for Share Promotion, T-Media surveyed retail investors’ views on the reputation of Finland’s 79 largest listed companies. Kone, Ponsse, and Gofore were rated as the companies with the best reputations. Kone also held the top spot last year, and Ponsse came in second. Gofore, which ranked third on the list, has risen seven spots from the previous year.
Reputation&Trust Survey of Listed Companies: An organization’s ranking in the survey is based on the reputation scores obtained in the survey. Reputation scores range from 1 to 5.
“Family-owned companies listed on the stock exchange once again fared well in the eyes of individual investors. It is said that the ‘quarter’ for family-owned companies is 25 years. This is what private investors value—stability inspires confidence. Kone’s reputation is so solid that even the challenges of the operating environment did not diminish its investment appeal. Ponsse, owned by the Vidgren family, received the highest ESG rating in the study. Gofore, which listed in 2017 and has risen to the top three, also has strong family ownership,” says Sari Lounasmeri, CEO of the Finnish Stock Exchange Foundation.
Fortum was the biggest loser of the year; Nokian Tyres was the biggest gainer
The results show that the reputation of publicly traded companies is generally good, but has declined for the second year in a row. The average reputation score for publicly traded companies this year is 3.53; in last year’s survey, it was 3.56, and the year before that, 3.60.
The state-owned company Fortum saw the largest single drop (-0.82) in this year’s reputation survey. The company’s reputation declined for the second time in a row, landing at the bottom of the list with a score of 2.50. Private investors were particularly critical of Fortum’s management.
Nokian Tyres, which had also suffered from Russia’s war of aggression, was, however, able to restore investor confidence. Nokian Tyres improved its reputation by 0.30 points from the previous year, ending up with a score of 3.38. However, the company’s reputation still lagged behind its score from two years ago, when it was still among the companies with a good reputation.
Overall, retail investors’ perceptions of listed companies’ financial health and management competence have deteriorated the most.
“Changes in interest rates and inflation, as well as global crises ranging from the pandemic to Russia’s invasion, affect nearly all companies, impacting their market value and reputation—especially in Finland. However, company leadership plays a major role in charting a new course and setting a vision,” says Harri Leinikka, CEO of T-Media, which conducted the study.
“Unlike other aspects of reputation, the perception of responsibility associated with publicly traded companies has improved slightly. This is a great achievement, as expectations and demands regarding responsibility have grown at the same time,” Leinikka continues.
Jussi Pesonen, Pekka Lundmark, and Henrik Ehrnrooth were named the best CEOs
In addition to reputation, the survey also identified the best CEOs. Experienced CEOs of large publicly traded companies—Jussi Pesonen of UPM, Pekka Lundmark of Nokia, and Henrik Ehrnrooth of Kone—emerged as the top CEOs in the eyes of individual investors. The top ten also includes several CEOs of growth companies, such as Juha Varelius of Qt Group, Tapio Pajuharju, who moved from Harvia to Kamux, and Tomi Ristimäki of Kempower.
THE BEST CEOs
1. Jussi Pesonen
2. Pekka Lundmark
3. Henrik Ehrnrooth
4. Tiina Alahuhta-Kasko
5. Juha Varelius
6. Torbjörn Magnusson
7. Tapio Pajuharju
8. Frank Vang-Jensen
9. Annica Bresky
10. Tomi Ristimäki
Reputation&Trust Survey of Listed Companies: The Top Ten CEOs with the Most Mentions.
Leaders are expected to have the ability to steer the company forward amid current challenges, while also securing the conditions necessary for its long-term success. Impact analyses based on 18,837 individual company assessments in the study show that perceptions of leadership correlate most strongly with private investors’ behavior toward companies.
“It is important that CEOs of publicly traded companies also listen to their stakeholders and engage in key social debates. For example, Pekka Lundmark was quick to take a stand on the current debate on racism. CEOs have a significant influence on the operating conditions of their companies, their entire industry, and society as a whole,” says Nina Laakso, Senior Advisor at T-Media.
This is how we conducted the study
The Reputation&Trust survey of publicly traded companies examined the reputation of 79 companies among Finnish retail investors. The companies’ reputations were measured usingReputation&Trust survey model, which evaluates reputation based on eight factors: governance, finances, leadership, innovation, interaction, products & services, workplace, and responsibility.
The survey targeted Finnish retail investors aged 15 and older nationwide. Data for the survey was collected via an online questionnaire between May 11 and June 26, 2023, in collaboration with the Finnish Foundation for Share Promotion and the Finnish Association of Shareholders.
A total of 7,757 individual investors responded to the survey, providing a total of 18,837 company ratings. The statistical margin of error for the entire data set is at most approximately 1.11 percentage points in either direction. For an individual company, the margin of error for the reputation score is 0.04–0.06 points, depending on the standard deviation of the validated company-specific assessments.
More information about the study
Riku Ruokolahti, Director of Development, T-Media Oy
+358 400 512 200, riku.ruokolahti@reptrust-staging.fi-p.seravo.com
Harri Leinikka, CEO, T-Media Oy
+358 40 505 5001
harri.leinikka@reptrust-staging.fi-p.seravo.com
