CEO charisma, compensation, and firm performance

Henry L. Tosi, Vilmos F. Misangyi, Angelo Fanelli, David Waldman, Francis J. Yammarino

Research output: Contribution to journalArticlepeer-review

134 Scopus citations

Abstract

We examined the relationships among CEO perceived charisma, CEO compensation packages, and firm performance in a sample of Fortune 500 companies over a 10-year period. CEO charisma ratings obtained from company CFOs and VPs for HRM were directly related to total CEO pay but not to any firm performance measures. CEO perceived charisma also was related to shareholder value, under highly uncertain conditions. In essence, charismatic CEOs seem able to influence their compensation packages and stock prices but not other indicators of firm performance. Implications for future charismatic leadership research and CEO compensation-firm performance work are discussed.

Original languageEnglish (US)
Pages (from-to)405-420
Number of pages16
JournalLeadership Quarterly
Volume15
Issue number3
DOIs
StatePublished - Jun 2004

Keywords

  • CEO compensation packages
  • CEO perceived charisma
  • Crisis and uncertain conditions
  • Firm performance

ASJC Scopus subject areas

  • Business and International Management
  • Applied Psychology
  • Sociology and Political Science
  • Organizational Behavior and Human Resource Management

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