6 Types of Toxic CEOs

6TYPES OF TOXIC ČEOS It's tough at the top. Once you climb the ladder, staying there can be a challenge. How do some CEO set themselves and their companies up for failure? 38% A recent study found that up to 38% of the highest paid CEOS in the last 20 years failed. The criteria for failure was pretty extreme: these CEOS were responsible for the dissolution of their firm, being fired, requiring a bailout, or incurring fraud-related fines and penalties. 32% In January 2014, CEO turnover had climbed by 32%. 23.8% In 2013, 23.8 of CEO turnover was due to dismissal. 40%- 18 Almost 40% of CEOS are fired within the first 18 months of their tenure. MONTHS Failing fast and failing hard seems to be the rule. Hanging onto an ineffective leader can cost a company a fortune in a very short time. 6 Types Of Toxic CEOS That You Don't Want To Be The Gambler Over-optimistic, brash, and irresponsible, the gambler CEO plays fast and loose with the fortunes lives of his shareholders and employees. A cool head and the ability to bluff an opponent now and then are great assets, but this type takes it to far. An example? In 2013 Eike Batista, CEO of EBX group, and used his golden history and brilliant charisma to raise $20bn for his visionary oil project. Without the proper research, forecasts, and experience to back it up, the company's stock dropped 95%, and Batista personally lost 99% of his wealth. Risk-taking is a large part of what it takes to get to the top, but distinguishing between a calculated wager and a wild gamble is a must. The Hesitator Over-caution can be as destructive as over-confidence. Indecision and a failure to see needed changes can tank a hesitant CEO and his company as competitors race to fill the gap. Thorsten Heins, Blackberry's CEO in 2013, t approach and missed the opportunity to capitalize on their existing app. The mobile revolution continued to soar, and both Heins and Blackberry were left in the dust. The company lost billions each quarter, and Heinz was fired after only 22 months on the job. :a conservative The Loudmouth When your opinion is always the one that matters, it can be easy to lose perspective on when to talk and when to shut up. The loudmouth CEO has an inflated sense of the importance of his own ideas, and isn't afraid to share them, no matter how harmful they may ultimately be. Robert Benmosche, CEO of AIG, took a controversial public stance defending giant bonuses after a bailout, and then made matters worse when he compared criticism to white supremacist lynching, which caused a total PR meltdown. As the public head, face, and voice of a company, a smart CEO watches his words. The Cowboy This lone ranger doesn't care what his board, his employees, or his customers think of his strategy. The cowboy CEO rides in with a "my way or the highway" attitude and proceeds to drive the company right off the edge of the cliff. Ron Johnson took the reins at J.C. Penny in 2012, and instigated bottem ouerhsugated an untested top-to-bottom overhaul of the 111-year-old family brand, based on his experience with the uber-hip Apple. Customers were alienated, stores emptied, and revenues dropped $4bn in one year. Johnson was dismissed 17 months into his tenure, and the company may never recover. The Despot They say power corrupts, and a despot CEO is a perfect example. Slipping ethical standards are a serious problem at the top. Corruption springs from a sense of entitlement and invincibility, and when the CEO of a powerful company gets out of hand, the con consequences can be Chesapeake Energy Corps stepped down in 2012 after his shady dealings were exposed. Aubrey McClendon took up to $1.1bn in undisclosed personal loans from the company, and was caught indulging in several side endeavors which created massive conflicts of interest, as well as using the company jet, assets, and employees for personal use. In the wake of the scandal Chesapeake stock lost over $650 million on just one day. The Maverick Originality and independent thinking are admirable traits in a leader, but the maverick CEO takes things too far. The young, charismatic CEO of Groupon, Andrew Mason, was popular with employees and the media, but his tenure was marked by a penchant for bizarre stunts, unorthodox accounting methods, unprofessional communication, and a brazen sense of over-confidence. After turning down Google's company in 2010, Groupon saw a 77% loss in its share value and the last quarter of Mason's term alone produced a staggering $81 million net loss. In typical fashion, his public goodbye letter was irreverent: "I've decided that l'd like to spend more time with my family. Just kidding -I was fired today." II unprecedented $6bn dollar offer to buy the Portrait of a CEO: Some unusual statistics about top executives 52% of CEOS identify themselves as Republicans 17% identified as Independents, while just 2% indicated Democrat or Libertarian. 29% declined to identify their political affiliation, perhaps wisely. The average height of a Fortune 500 CEO is 6it The fact that only 4.8% of Fortune 500 CEO positions are held by women might have something to do with this. 84% of Fortune 1000 CEOS said they were "voracious readers" 4% of CEOS meet the clinical criteria for psychopathy The difference between criminals and effective leaders may be largely a matter of degree. When CEOS go bad, that line may blur. 4% of Fortune 1000 CEOS described themselves as very popular in school 57% said they were unpopular While charisma is a valuable quality, sometimes being right is more valuable than being liked. 43% of Fortune 1000 CEOS admitted they were primarily motivated by fear Life events (and lifestyle) can have an uncanny influence on CEO performance 83% of CEOS are married. A study by the National Bureau of Economic research found that marital status had a significant, measurable impact on company performance. Single CEOS invest more aggressively, and their company's stock volatility is 24% higher. A recent study found that when a CEO loses a member of the family, that loss is reflected in the business. The loss of a child resulted in a 21% drop in value in the following year. The death of a spouse triggered a 15% drop. R.I.P The same study also found that when CEO's mother-in-law dies, their company's profitability actually sees a small rise in value. Other studies found that when a CEO builds or buys a mega mansion, the company's performance takes a hit. $1,000,000 Fortune magazine estimated that the organizational cost of executive failure can top $1 million TO SUM IT UP: Corporate performance is directly linked to the actions, choices, and decisions a CEO makes, both in and out of the office. The ingredients for failure are often uncomfortably related to the ingredients of success, and it can be difficult to balance on the right side of the line. CEOS who wall themselves into an ivory tower put themselves and their organization at risk, so a support system is critical. Experience, self-confidence, and leadership are vital, but staying on track also depends heavily on staying open and responsive the viewpoints of respected advisors, the opinions of your customers and employees, and the full range of information available at any given time. 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