“Narcissistic CEOs address their need for acclaim by pursuing celebrity in the media and affiliating with high-status board members. 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,” according to an Academy of Management Review article. “The ways in which narcissistic CEOs construct their professional worlds can affect firm performance.”

Narcissists in general “are not nurturing or developmental, lack empathy, and develop superficial relationships that they will willingly discard if the person no longer serves their purpose. … narcissists consider themselves superior to others,” according to the article, “Master of Puppets: How Narcissistic CEOs Construct Their Professional Worlds,” by Arijit Chatterjee of ESSEC Business School and Timothy G. Pollock of the University of Tennessee-Knoxville. “At the same time, narcissists have a very vulnerable self-image … Because narcissists need people who will applaud and cheer for them, they are especially drawn to situations that enhance the likelihood they will receive public adulation.”

Read more at AOM Insights