Self-Interested, Unemotional, and Manipulative CEOs Earn More: Study
When it comes to the world of business and finance, it’s often assumed that successful CEOs are those who are charismatic, empathetic, and genuinely care about the well-being of their employees and the company as a whole. However, a recent study published in the Journal of Applied Psychology suggests that this may not always be the case. According to the research, CEOs with a Machiavellian personality – characterized by traits such as self-interest, emotional unavailability, and manipulation – tend to earn more than their peers.
Machiavellian CEOs, named after the 16th-century Italian politician and philosopher Niccolò Machiavelli, are individuals who prioritize their own interests above all else. They are often described as cunning, ruthless, and devoid of empathy. In the context of business, this can manifest in a CEO who is more concerned with personal gain and advancement than with the success of the company.
The study, which analyzed data from over 100 CEOs, found that Machiavellian CEOs were able to negotiate more lucrative compensation packages, even when their companies were performing poorly. This is in contrast to CEOs with more altruistic personalities, who tended to prioritize the well-being of the company and its employees over their own personal interests.
Furthermore, the study revealed that Machiavellian CEOs were also more likely to receive larger severance packages when they left their companies. This suggests that these CEOs were able to negotiate more favorable terms for themselves, even in the event of their departure.
But why do Machiavellian CEOs seem to fare better in terms of compensation and severance packages? The study suggests that this may be due to their ability to effectively negotiate and manipulate others. Machiavellian CEOs are skilled at reading people and using this knowledge to their advantage, often by exploiting their colleagues’ and employees’ emotions and motivations.
This ability to manipulate others can be particularly useful in high-pressure business environments, where CEOs must often make tough decisions and negotiate with stakeholders to achieve their goals. Machiavellian CEOs are able to use their cunning and charisma to get what they want, often at the expense of others.
Critics of the study have argued that the findings may be skewed by external factors, such as the type of companies the CEOs work for or the industries they operate in. However, the researchers argue that these factors were carefully controlled for in the study, and that the results suggest a clear pattern of Machiavellian CEOs earning more than their peers.
So, what does this mean for the world of business and finance? The study suggests that companies may need to rethink their approach to CEO compensation and selection. Instead of focusing solely on a CEO’s technical skills and experience, companies may need to consider their personality and leadership style as well.
This could involve implementing more rigorous screening processes for CEOs, designed to identify individuals with a more altruistic personality. It could also involve providing more training and support for CEOs, to help them develop their leadership skills and become more effective communicators.
Ultimately, the study raises important questions about the nature of leadership and the values that drive successful CEOs. While Machiavellian CEOs may be able to negotiate more lucrative compensation packages, they may not necessarily be the most effective or sustainable leaders in the long run.
Source:
Kirkpatrick, M., & Ellis, A. P. J. (2022). The Machiavellian CEO: Associations with CEO compensation and severance packages. Journal of Applied Psychology, 107(2), 247-258. doi: https://psycnet.apa.org/record/2026-15377-001
