CEO narcissism: massive signatures sign inflated egos and poor efficiency
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Utilizing handwriting evaluation as a recruitment device — as some Metropolis banks as soon as did — is out of trend. But judging firm bosses by how they write their names is surprisingly frequent in tutorial circles.
Scrutinising signatures is a ploy utilized by the swelling ranks of lecturers researching the hyperlink between company efficiency and leaders’ character traits. The most recent such research suggests chief executives with sprawling signoffs are significantly more likely to announce massive share repurchases, which they don’t essentially implement.
An earlier paper made a hyperlink between giant autographs and poor efficiency, together with overspending on acquisitions. Leaders with extravagant signatures have been extra lavishly paid than these with smaller scribbles. They’re additionally more likely to discuss up their dedication to company social duty. Saving the world is a gorgeous platform for self-aggrandising CEOs, cynics may conclude.
Researchers argue that the dimensions of signatures — out there from annual studies — is a proxy for narcissism. That trait is characterised by attention-seeking, lack of empathy and an inflated self picture. They established the hyperlink by evaluating volunteers’ signatures to their scores on character assessments.
Different clues to a chief govt’s character are how usually they are saying “I”, the dimensions of their {photograph} in an annual report and the place their quotes are positioned in a press launch.
One other strategy is to ask fellow administrators to evaluate a CEO. When Stanford College researchers took that tack final 12 months, they concluded that one in six chief executives displayed moderate-to-high narcissism. That makes narcissism about 3 times extra prevalent amongst CEOs than within the common inhabitants.
This could event CEOs an uncharacteristic second of introspection. They are going to bounce again with the information that the Stanford researchers discovered chief executives have a reasonably wholesome character profile, on common. Even the narcissists have been discovered to have some saving graces together with — surprisingly — a higher probability of operating corporations with good governance options.
Narcissists could make inspirational leaders. Self-confidence and danger tolerance assist take executives to the highest. However there may be rising recognition they’ll injury a enterprise’s efficiency and tradition. Bosses with poisonous personalities ought to watch their step.
The Lex group is desirous about listening to extra from readers. Please inform us whether or not you assume narcissism is a helpful or harmful CEO trait within the feedback part under
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