Narcissistic CEOs Can Mean Big Legal Bills | Stanford Graduate School of Business

At first glance, it might seem worth it for a company’s shareholders to tolerate a narcissistic CEO’s abusive personality, given the outsized success that Jobs and others like him have achieved. But narcissistic CEOs’ rampant hubris also has a serious downside, [Charles] O’Reilly notes. Studies indicate that they’re more likely to engage in questionable tax-avoidance schemes, to manipulate accounting data, to overpay for corporate acquisitions, and to seek excessive compensation.

In an article published in Leadership Quarterly, O’Reilly and colleagues Bernadette Doerr and Jennifer A. Chatman of the University of California, Berkeley, show that narcissistic CEOs subject their organizations to potentially ruinous legal risks as well. Not only are they more likely to become embroiled in protracted litigation, but their personality traits make them less sensitive to objective assessments of risk. Narcissists are less willing to take advice from experts and to settle lawsuits — even when it’s likely that the company will lose.

Source: Narcissistic CEOs Can Mean Big Legal Bills | Stanford Graduate School of Business

One Comment Add yours

  1. Musk is inviting a lawsuit and I anticipate signing on.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s