Notorious Group of CEOs: The Perilous "Cult" of High-Flying Executives
In the world of business, the concept of the rock star CEO has become a popular narrative. However, according to Michael Volkov, a respected voice in the field of corruption, crime, and compliance, this obsession with charismatic leaders may be doing more harm than good.
A successful CEO, Volkov argues, is not defined by personal accomplishments or an image-conscious approach. Instead, they are the ones who lead their teams to achieve positive results, focusing on the overall mission of the company. A CEO who is overly concerned with their image, relationship with the Board, and quarterly financial results may find themselves failing to meet expectations.
The author criticizes the 'cult' of CEO rock stars and suggests it should end. He believes that companies are relying too much on these quick-fix solutions, when they should be selecting CEOs based on qualifications, integrity, and ability to lead.
Corporate Boards have the primary responsibility for hiring the CEO, and Volkov encourages them to rely on their gut instincts and interpersonal assessments, rather than relying on fancy personality tests or executive consultants. He suggests that by returning to basics and judging potential leaders based on their leadership qualities, Boards can avoid hiring CEOs who are doomed to fail.
Good leadership traits include honesty, vision, integrity, empathy, the ability to listen and learn, self-confidence, and real people skills. A successful CEO thrives on corporate successes, not personal achievements. The importance of the 'Tone at the Top' is emphasized, suggesting that CEOs should exhibit honesty, integrity, and a focus on the overall mission, rather than personal achievements or image.
History has seen both 'great' leaders who inspired positive feelings and 'horrible' and 'evil' leaders who led countries into war or committed atrocities. The author reminds us that leadership is a complex and nuanced concept, and it's important to remember that the CEO's role is to serve the company and its stakeholders, not to become a celebrity.
In conclusion, Volkov advises Corporate Boards to reconsider their approach to selecting CEOs, adopting a new model based on a test of 'leadership'. If asked, he claims he could easily help a company pick a good CEO. By focusing on the qualities that truly matter, Boards can ensure they are hiring leaders who will drive the company towards success, rather than just another rock star CEO.
This article was republished with permission from Michael Volkov's blog, 'Corruption, Crime & Compliance'. Congress and the SEC are also trying to address the problem by requiring disclosures of executive compensation. Diagnostic tests have been developed and sold to companies to help them pick a good leader, but Volkov believes that the current obsession with rock star CEOs is a waste of time, with a small number of exceptions. Everyone needs a hero, someone they can look up to and admire, but it's important to remember that the CEO's role is to lead the company, not to be a celebrity.
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