CEOs represent the face of their companies. Although one may expect this public role to temper what CEOs do and say, there are many examples of highly visible CEOs behaving eccentrically in public. For example, Paypal’s Peter Thiel has championed investing in human immortality and Tesla’s Elon Musk frequently talks about nuking Mars and even received attention last year for smoking marijuana on a podcast with comedian Joe Rogan.
How a CEO’s Personality Affects Their Company’s Stock Price
It pays to be conscientious. Extroverted, not so much.
October 09, 2019
William Andrew/Getty Images
Summary.
Many CEOs seem unconcerned with managing external perceptions. But how does this affect the value of their firms? As the face of the company to outsiders, CEOs’ observable tendencies (for example, how they interact with media or equity analysts) could significantly influence investors’ perceptions of the firm and therefore its value. And researchers found that CEOs’ observed personality traits do have important consequences for their firms’ stock volatility (i.e., risk) and shareholder returns.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Leading People. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
What you need to know about being in charge.