Reputational Dangers
After UnitedHealthcare CEO Brian Thompson was shot and killed in New York earlier this month, there was certainly outrage over such a brazen crime. But mixed in with that was a level of schadenfreude from the public. It seems as if the killing opened the floodgates for some to vent their frustrations over America’s healthcare system.
Some of that outrage has boiled over. In the days after Thompson’s death, news reports said the New York Police Department was investigating “Wanted” posters that appeared around Manhattan that featured corporate executives, though the specific individuals targeted were not named.
Banks are certainly no strangers to being the focus of public anger. In the years after the 2007-08 financial crisis, the industry faced plenty of blowback as the housing market collapsed.
Despite those hostile feelings largely subsiding, financial institutions remain “an easy target reputationally” when consumers are feeling financial pressure, says Evan Nierman, founder and CEO of crisis communication firm Red Banyan. “[Banks are] an easy group for the average person to hate because their executives are well compensated,” he adds. “And by virtue of their job, bankers deal with people’s finances. When people are doing well financially, they aren’t paying attention to their bank. When people struggle, the sentiment can turn very negative.”
That’s not to say the average community bank CEO needs to worry about their physical safety. But it’s a good reminder that boards and management teams should proactively protect their bank’s reputation. That includes thinking through the unintended consequences of decisions — for instance, having to take action against a beloved local business over a soured loan could spark fury from the community, says Nierman.
Critics have taken to social media to complain that health insurance companies are bolstering profits by mistreating customers. Bank leaders should be aware of these sentiments and think carefully about any policy or decision that could draw similar ire.
“What’s happened is a warning shot to a number of major industries that there is a public outrage that can be stoked,” Nierman says.
• Jackie Stewart, executive editor for Bank Director
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