Trust in the digital age: reputation management for ultra-high-net-worth individuals

Farrer & Co has an extensive network of leading experts across the globe. We regularly collaborate with top advisers, leading integrated teams to deliver great outcomes for our clients.

The Price of Fame series shines a spotlight on our network of intelligence and communication experts, psychologists, publicists, and our reputation management and defamation lawyers.

We explore areas of reputational vulnerability and identify the steps that can be taken to prevent reputational harm and lessen the mental health impact of these issues.

Someone we are very proud to have in our network of advisers is J. Peter Donald, former spokesman for the Federal Bureau of Investigation (FBI) and Assistant Police Commissioner for the New York City Police Department.

Peter is the Founder and Managing Director of Arena, a global advisory firm that builds and protects the reputations of its clients. He is also an advisor at Emissary Partners, a global firm for family offices and institutional investors.

I sat down with Peter to discuss his fascinating career and experience in both law enforcement and the private sector.

Click here to watch or read a summary of the interview below.

“How do you ensure that you’re not defined singularly by one event?”

On his work advising private clients and high net worth families, Peter raises key questions to consider around transparency in data. He asks, “do you own your story?” Our article discusses the challenges individuals face when negative or intrusive press and social media coverage appear in search results, impacting personal and professional reputations, and the “right to be forgotten.”

Peter explains: “We continue to see several families who view reputation as part of that halo effect that can also increase deal flow, increase opportunities, and are constantly cultivating that narrative … there are people who are spending a fair amount of time thinking about that even though they may not tell you they’re thinking about that.”

Conversely, some families or private clients have made little to no information about themselves public. While this might seem advantageous for those seeking to avoid the limelight, Peter raises an important question: if something were to go wrong, even if it’s beyond the client’s control, “How do you ensure that you’re not defined singularly by one event? If you’re so quiet and so private that there’s nothing out there, how do you think about that?” He continues, “If you haven’t done anything to influence how people and what people learn about you, that could be very problematic.”

“If it’s bad it will get out; if it’s worse, it’ll get out faster”

Peter recounts an incident of corruption within the NYPD, where criminal activity in the Bronx was underreported. By proactively identifying, thoroughly investigating, and transparently communicating the issue to the public, the NYPD ensured that “it was a day of news, and it was over.” Peter operates under the premise that, now more than ever, “If it’s bad it will get out; if it’s worse, it’ll get out faster.”

So, what about when information (perhaps inevitably) goes public? I reflect on the significant role media lawyers have to play in engaging directly with press in the UK, which is due in part to the way the law is structured here. There’s a balance between free speech on the one hand and rights to reputation and privacy on the other. The conversation also raises the debate swirling around the issue of Strategic Lawsuits Against Public Participation (SLAPPs) on both sides of the Atlantic, which you can find out more about in our article.

“It will be increasingly difficult over time to live in complete obscurity”

I asked Peter, “Do you think there is a greater tendency now to be more proactive about reputation?” Reflecting on the increase in transparency and the amount of data available to the public, he says “It will be increasingly difficult over time to live in complete obscurity.”

You can find out more about our work with family offices, high net worth individuals and organisations on reputational issues here.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, August 2024