The CEO message is the section of most interest to shareholders and other investors in an annual report. It not only reflects the overall quality of the annual report, but also influences investor perception of the quality and reliability of the company’s management. Accordingly, it is vital that the CEO message be prepared using the utmost care and be based on a strategic methodology. To assist in this process, Edge International offers a service through which we evaluate CEO messages and propose improvements based on the Rittenhouse Method, a method for evaluating and analyzing IR communications that was developed in the United States.
- Determine the trustworthiness of a company and its management by evaluating and analyzing the content of the CEO message in the annual report based on seven categories of criteria
- Eliminate “fog,” expressions that damage trust
In principle, we propose improvements to the CEO message based on the areas of content as well as the expressions used by applying the two methods listed above.
Seven Categories of Evaluation
Fog—expressions that damage trust
So-called fog expressions, such as those listed below, lower the evaluation of the CEO message. Fewer fog expressions, on the other hand, make for a more effective message.
The Rittenhouse Method
The Rittenhouse Method is a model that was developed in the United States for investors to use when evaluating potential investments. It ranks the accountability and trustworthiness of companies and their management by analyzing the CEO message contained within the annual report. At Edge International, we have adapted this method for use in improving the quality of CEO messages in annual reports, which has consequently resulted in the development of a revolutionary new technique for boosting the trustworthiness and candor of such messages.