When CEO vision slips into narcissism

A new study has made a connection between the size of a CEO's ego and corporate performance.

by Financial Times
Last Updated: 23 Jul 2013

Academics Arjit Chatterjee and Donald C. Hambrick of Pennsylvania State University (presented at the Academy of Management in Atlanta) show that big egos tend towards 'grandoise and higher-risk strategies'.

Big personalities favour acquisitions, big product launches and aggressive global expansion over more everyday areas of management such as cost control and people management.

It is up to the boards of companies to make sure they keep their top person's ego in check and prevent the onset of hubris. They will be able to judge whether the CEO is more a visionary than a narcissist, or the other way around. 

Source:
FT, 26-27 August 2006
Francesco Guerrera
Review by Morice Mendoza

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Subscribe

Get your essential reading delivered. Subscribe to Management Today