CEO charisma, compensation, and firm performance

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

Research output: Contribution to journalArticle

124 Citations (Scopus)

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 1 2004

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charisma
firm
Research
performance
shareholder value
rating
leadership
Fortune
Firm performance
Charisma
Chief executive officer
Compensation packages
CEO compensation

All Science Journal Classification (ASJC) codes

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

Cite this

Tosi, H. L., Misangyi, V. F., Fanelli, A., Waldman, D. A., & Yammarino, F. J. (2004). CEO charisma, compensation, and firm performance. Leadership Quarterly, 15(3), 405-420. https://doi.org/10.1016/j.leaqua.2004.02.010
Tosi, Henry L. ; Misangyi, Vilmos Fosnocht ; Fanelli, Angelo ; Waldman, David A. ; Yammarino, Francis J. / CEO charisma, compensation, and firm performance. In: Leadership Quarterly. 2004 ; Vol. 15, No. 3. pp. 405-420.
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Tosi, HL, Misangyi, VF, Fanelli, A, Waldman, DA & Yammarino, FJ 2004, 'CEO charisma, compensation, and firm performance', Leadership Quarterly, vol. 15, no. 3, pp. 405-420. https://doi.org/10.1016/j.leaqua.2004.02.010

CEO charisma, compensation, and firm performance. / Tosi, Henry L.; Misangyi, Vilmos Fosnocht; Fanelli, Angelo; Waldman, David A.; Yammarino, Francis J.

In: Leadership Quarterly, Vol. 15, No. 3, 01.06.2004, p. 405-420.

Research output: Contribution to journalArticle

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