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Boss’ ego linked to business volatility

<p>If the ego of your boss barely fits through the corner-office door, prepare yourself for a roller coaster ride.</p>




If the ego of your boss barely fits through the corner-office door, prepare yourself for a roller coaster ride.





Companies led by narcissistic chief executives tend to change strategy more frequently and have more extreme performance fluctuations, according to research by Pennsylvania State’s Smeal College of Business.





Researchers gauged the level of narcissism of more than 100 CEOs of computer software and hardware companies, and found that CEOs with inflated self-views gravitate toward bolder, highly visible managerial choices.





Narcissism was measured by the prominence of the CEO’s photograph in the company’s annual report, the frequency of the CEO’s name in corporate news releases, the CEO’s use of pronouns like “I” or “mine” in interviews, and the CEO’s pay compared with the second-highest executive.





The research found no relationship between executive self-love and how well a company performs overall. Self-centred CEOs generated more irregular outcomes, but not necessarily better or worse on average.