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We explore how narcissistic CEOs address two powerful and conflicting needs: the need for acclaim and the need to dominate others. We argue that narcissistic CEOs address their need for acclaim by pursuing celebrity in the media and affiliating with high-status board members, and they address their need to dominate others by employing lower-status, younger, and less experienced top management team members who will be more deferential to and dependent on them. They manage each group differently through the use of different rewards, punishments, and influence tactics. We extend prior theory on CEO narcissism by exploring the mediating constructs that can link CEO narcissism and firm performance, offer a greater understanding of corporate governance by exploring how CEO personality traits influence governance structures, and demonstrate how a CEO’s personality characteristics can affect the acquisition of social approval assets.
Chatterjee et al. (Thu,) studied this question.
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