Article
Harvard Business Review

When Hiring CEOs, Focus on Character

Format:Print

Abstract

The author, an associate professor at Harvard Business School, has studied the ways in which the lifestyle behaviors of CEOs—in particular, materialism and a propensity for rule breaking—may spell trouble for a company. Her research, which includes looking at executives’ criminal records and the costs of their homes and automobiles, has found some intriguing links: Firms led by CEOs with even minor traffic tickets or excessive spending habits are disproportionately prone to fraud, insider trading, and other risky business activities. In this article Dey outlines the evolution of this work and suggests that boards should pay attention to executives’ off-the-job behavior.