Was this Standard Chartered’s Ratner moment?

Well, this was the situation Standard Chartered found itself in after its CEO lamented the company’s share price in front of journalists.

And, of course, Bill Winters, got his prediction spot on. The media did focus on his use of that C-word.

Our share price is ‘crap’, admits Standard Chartered boss The Telegraph

Standard Chartered announces $1bn buyback to lift ‘crap’ share price The Times

Not many companies would want their name next to that word in the headlines.

So, was this the bank’s Ratner moment?

You can probably recall that Gerald Ratner is widely credited with making the ultimate off-the-cuff gaffe with his infamous ‘it’s total crap’ description of some of his company’s products.

The remarks, made in a speech in 1991, wiped £500 million from the value of his company and forced stores to close. And Mr Ratner resigned.

But the immediate outcome for Standard Chartered has been much different. Rather than a PR disaster, it has all turned out nicely.

The blunt assessment from the boss saw the company’s share price jump up.

Standard Chartered chief laments ‘crap’ stock price as profits jump Financial Times

StanChart unveils big buyback, profit jump as CEO bemoans 'crap' share price The Economic Times

Standard Chartered share price looking less ‘crap’ than before Investing.com

So, what can you learn from this? Why did saying ‘crap’ work out favourably for one boss and disastrously for another?

Well firstly, it is a reminder that no matter how well-prepared and briefed a spokesperson is, there is always the chance for an unguarded or unprepared comment to sneak through and grab attention.

This time, the unguarded comment did not harm Standard Chartered or its CEO.

But earlier this year, we saw Sir Howard Davies, the NatWest chairman, create a string of screaming headlines after telling Radio 4’s Today programme it was not “that difficult” to get on the property ladder.

More importantly though, it’s a crucial lesson on the importance of spokespeople who sound human.

In its financial results release issued before the briefing, the CEO said: “Our share price reflects little of our optimism about prospects and seems heavily influenced by the downside concerns.”

Boring, right?

Certainly not something likely to leap out and grab headlines. And CEO quotes in press releases and reports are often, er, rubbish.

But when you say, ‘these results are crap’, suddenly we have something that sounds authentic and human.

It feels like something someone would say rather than a quote that has gone through endless drafts and approvals and been stripped of life.

“Sound human” is advice we always stress during our media training courses. That may be without the bluntness or profanity shown here.

But being believable and sounding human is often the difference between comments being covered or canned, whether that is from a press release or a media interview.

Journalists want to report on leaders who offer something that sounds conversational, human, emotive, honest, bold and punchy. People who offer great quotes and soundbites.

Another crucial factor in it working so well is because it is unusual.

We’ve mentioned Mr Ratner, but when else can you remember a CEO or senior figure using that language when talking to the media?

The ‘unusual’ element is a vital part of newsworthiness. People like the surprising and the unexpected. And a big bank boss using that description of his firm’s share price fits the bill.

Let’s be honest. Standard Chartered is a big company, and there was always going to be coverage of its results, no matter how mundane the quotes were in the report.

But Mr Winter’s comments elevated the story beyond the business pages and secured far greater coverage.

The other key difference is media guile.

We interviewed Mr Ratner about his error in 2016, and he admitted to a degree of naivety.

“I didn’t realise that the media could cause so much trouble for me," he said.

“I know it sounds a bit naïve, but I thought I was sort of bombproof.”

Mr Winter knew what he was doing. As his quote suggests, he realised the media attention it would get.

And he understood there is a massive difference between describing your product or service as crap and bemoaning its share value.

Criticising the stock market valuation can’t be seen as harbouring contempt towards your customers.

However, it is still brave and bold.

The comment may still come back to haunt in time. But for now, Mr Winters doesn’t appear to have been talking crap.

Media First are media and communications training specialists with over 35 years of experience. We have a team of trainers, each with decades of experience working as journalists, presenters, communications coaches and media trainers. 

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