Futurity.org » CEO

The best bosses lead by failing

Jacqueline Ghosen-Buffalo — Tue, 13 Dec 2011 15:28:46 +0000

U. BUFFALO (US) — Humble leaders who embrace their failures are more effective and better liked, according to a new study.

“Leaders of all ranks view admitting mistakes, spotlighting follower strengths, and modeling teachability as being at the core of humble leadership,” says Bradley Owens, assistant professor of organization and human resources at the University at Buffalo.

CEO pilots take more risks on the job

Joe Mosley-Oregon — Thu, 11 Aug 2011 15:51:36 +0000

U. OREGON (US) — A CEO who enjoys the adrenaline rush of flying a private airplane is more likely than other chief executives to exhibit similarly bold management characteristics, a new study shows.

“CEOs who seek thrills in their personal lives are more likely than others to be aggressive in their corporate policies,” says study co-author Stephen McKeon, an assistant professor of finance at the University of Oregon. “They also tend to be effective leaders. If anything, these CEOs execute acquisitions that are more value-creating than those completed by other executives.”

For their study, McKeon and study co-author Matthew Cain, an assistant professor of finance at the University of Notre Dame, compared 179 corporate executives who hold private pilots’ licenses to 2,900 non-pilot CEOs. The Sensation Seeking Scale—developed in the 1970s by psychologist Marvin Zuckerman and used since then in hundreds of psychological studies—identifies the desire to fly airplanes as a very high predictor of thrill- and adventure-seeking traits.

Stock tip: Listen to the CEO’s voice

Chris Privett-Duke — Thu, 03 Mar 2011 16:18:33 +0000

DUKE (US) — Subtle emotional cues in a CEO’s voice can forecast a company’s future performance, new research shows.

Duke University business professors William Mayew and Mohan Venkatachalam analyzed the voices of chief executive officers and chief financial officers during earnings conference calls for nearly 700 major U.S. corporations. Using commercial software, the researchers monitored subtle vocal cues indicating positive or negative emotional states.

Higher pay for CEOs who look the part

Laura Brinn-Duke — Mon, 26 Apr 2010 15:40:31 +0000

Duke business professors (L-R) John Graham, Manju Puri and Campbell Harvey submit themselves for judgment. Who looks more friendly, or more competent? The trio staged a corporate beauty contest and found that CEOs rated competent just by their appearance tended to have higher income. However, the study shows a CEO’s appearance has no effect on company profitability. (Credit: Duke University’s Fuqua School of Business)

DUKE (US)—By staging a corporate beauty contest, researchers have found that CEOs who appear competent earn more money than less competent-looking CEOs, even though appearance is not associated with measurable differences in company profitability.

Finance professors at Duke University’s Fuqua School of Business paired photos of the CEOs of large and small companies with photos of non-executives with similar facial features, hairstyles, and clothing. They staged a variety of online experiments to ask nearly 2,000 participants to assess the photos.

Insiders make best CEOs

David Ruth-Rice — Thu, 21 Jan 2010 15:33:15 +0000

A new study says that hiring a CEO from within is better in the long term. “Inside CEOs, because of their deep knowledge and root in the firm, are more likely to initiate and implement strategic changes that can build the firm’s long-term competitive advantage,” says Anthea Zhang. (Credit: Photos.com/Rice University)

RICE—While hiring a CEO from outside the company may initially bring fresh ideas, a new study shows that promoting someone from within is a better strategy in the long run.

“Newly appointed CEOs, both outsiders and insiders, tend to make changes, and it may take years to observe the performance impact of the changes,” says Anthea Zhang, the Jesse H. Jones Distinguished Associate Professor of Management at the Jones Graduate School of Business at Rice University.

Viral case of the blame game

Karen Lowe-USC — Fri, 20 Nov 2009 15:45:45 +0000

Blame spreads quickly because it triggers the perception that one’s self-image is under assault and must be protected. “When we see others protecting their egos, we become defensive too,” says Nathanael Fast, the study’s lead author. “We then try to protect our own self-image by blaming others for our mistakes, which may feel good in the moment.”

USC/STANFORD (US)—Merely observing someone publicly blame an individual in an organization for a problem—even when the target is innocent—greatly increases the odds that the practice of blaming others will spread, new research shows.

The reason: Blame triggers the perception that one’s self-image is under assault and must be protected.

Survey: Time to trim CEO salaries

Futurity-Jenny Leonard — Fri, 11 Sep 2009 20:17:48 +0000

The study also finds that corporate board members believe exorbitant CEO salaries exist in other companies, not their own, says Ed Lawler, the study’s lead author. As a result, boards may not change their company’s executive pay plans. “Directors increasingly think there is a problem with executive compensation, but that may not lead to change because they think it is the other organizations that need to change.”

USC (US)—A recent survey shows most corporate board members believe parts of CEO pay packages need trimming and nearly half say the amount of CEO total compensation should decrease.

CEO salaries balloon in age of stock options

Futurity-Jenny Leonard — Fri, 24 Apr 2009 20:02:15 +0000

30 years ago executive salaries were 30 times larger than worker salaries. By the turn of the century, the ratio raced to 648 to one.

CORNELL (US)—In the 1970s, executive salaries were about 30 times larger than worker salaries. By 2000, the ratio zoomed to 648 to one. A recent Web seminar hosted by Cornell University’s IRL School suggests the dramatic surge is linked to stock options and record stock market growth.

Charlie Tharp, an ILR lecturer who took part in the seminar, says during the last 40 years a larger proportion of executive pay has become equity-based compensation versus salary. Many executives are rewarded for performance with stocks and stock options.