Narcissism exhibits diverse manifestations within leadership contexts, ranging from self-assurance and charm to more detrimental traits like excessive self-absorption and a lack of empathy towards others. While scholars have extensively investigated this personality trait in individual CEOs, little attention has been directed towards understanding its broader implications on the overall composition of senior management teams.

This research endeavor commenced with Professor Graf-Vlachy’s team analysing LinkedIn profiles belonging to top-tier managers. Professor Graf-Vlachy elucidates, “Narcissists are inclined to showcase their superiority to a wider audience. Previous studies have indicated that this inclination transcends into various facets of corporate communication, including press releases and correspondence with shareholders.” Indicators of narcissistic tendencies encompass aspects such as the prominence of an executive’s photograph in annual reports or the frequency of a manager’s name appearing in company press releases.

Researchers utilised a similar methodology to scrutinise individuals’ digital footprints on social media platforms. “We have established the feasibility of gauging managers’ narcissism levels through an analysis of their LinkedIn profiles, focusing on metrics such as the quantity of photographs, the length of ‘About’ sections, and the array of skills, certifications, and career milestones listed,” states Professor Graf-Vlachy.

The study examined 11,705 LinkedIn profiles belonging to senior managers in US-based companies, revealing a remarkable trend: CEOs with pronounced narcissistic tendencies tend to appoint individuals to their management boards who mirror their own narcissistic characteristics. Put differently, they gravitate towards selecting executives who also exhibit a propensity for narcissism. A surge in a CEO’s narcissism level by one standard deviation corresponds to an 18 per cent increase in narcissism levels among newly appointed executives.

This phenomenon profoundly influences team dynamics and stability, as management boards comprising more narcissistic individuals experience elevated turnover rates, consequently incurring substantial costs for the organisation. “Narcissists are inclined towards dominance, which fosters conflicts within the boardroom, thereby precipitating greater volatility within the executive team,” summarises Professor Graf-Vlachy.

The study’s findings underscore the importance of CEOs and supervisory boards gaining a deeper understanding of the dynamics within their executive teams and reassessing their managerial selection processes accordingly. To achieve this objective, the researchers advocate for a more holistic evaluation of managers’ personality traits.

More information: Sebastian Junge et al, Narcissism at the CEO–TMT Interface: Measuring Executive Narcissism and Testing Its Effects on TMT Composition, Journal of Management. DOI: 10.1177/01492063241226904

Journal information: Journal of Management Provided by TU Dortmund University