Shawn Cole is the president and co-founder of Cowen Partners with 20+ years of experience building and growing successful businesses.
While bold decisions and unwavering confidence are the currency of the C-suite, it’s important to differentiate between elite leaders and individuals with psychopathic traits and polished exteriors.
Some leaders who dominate boardrooms exhibit traits associated with corporate psychopathy. These traits may have propelled them to the C-suite, but they can also undermine their team’s execution and long-term success. As the president and co-founder of an executive search firm, I’ve found that the limits of such leadership are glaringly visible in today’s volatile economic climate.
The good news is that you can protect company culture and your organization’s future by watching out for indicators of corporate psychopathy and strategically safeguarding your organization against the dangers of vision without execution.
The Allure Of Corporate Psychopathy
Research published in Applied Psychology defines dark personality in the workplace as a cluster of traits, many of which are in line with the core components of psychopathy. These traits include:
• Superficial charm.
• Egocentricity.
• Lack of empathy or remorse.
• Manipulativeness.
• A propensity for risk-taking.
When polished or artificially mitigated, these traits can appear like genuine charm, legitimate self-confidence and calculated risk-taking. For instance, a leader who is charismatic and makes tough calls without hesitation often wins the confidence of boards.
A decision-maker with these traits can be a significant asset during crises, and those with psychopathic traits certainly have value in the C-suite. Eventually, though, the depth and selfishness of corporate psychopathy in unchecked leadership positions can cost an organization the trust of its employees.
Let’s say a company is teetering on the edge of bankruptcy or facing a disruptive shift. A psychopathic leader’s ability to act decisively can be a lifeline if they are truly unburdened by emotional weight. Such a leader might push through aggressive cost-cutting or charm investors to secure critical funding.
Yet, this is only half the equation. While the vision sets the course, execution builds the ship. That’s where I’ve seen psychopathic traits show cracks.
The Execution Gap
One of the greatest dangers of a leader with corporate psychopathic tendencies is that they may be able to convince their audience that they can truly move mountains. Oftentimes, they may even believe it themselves. But let’s face it: Achieving and sustaining great things requires buy-in from the entire workforce.
Great companies aren’t built on bold ideas alone. You have to execute, which is a human endeavor. An individual who lacks empathy may excel at making hard choices like laying off staff or shutting down unprofitable teams. They can also drive aggressive timelines.
There’s just one glaring problem. They may also fail to inspire the loyalty of their teams. This is understandable, especially when one considers the issue from the perspective of the workforce. Why would someone be loyal to a leader who, in return, seems to view them as nothing more than a strategic piece on a game board?
An article in the Journal of Business Ethics links corporate psychopathy to corporate bullying and found that when corporate psychopaths were present, “supervisors [were] strongly perceived as being unfair to employees and disinterested in their feelings.” I believe this could lead to issues such as:
• Disengagement.
• Higher turnover.
• Less innovation.
Your organization needs an agile, focused team to survive in the current economic climate. However, leaders with corporate psychopathic tendencies may drive distrust and fracture the organization.
The Implications Of Poor Execution
Let’s say that a tech startup is scaling rapidly in a competitive market. The CEO has psychopathic traits and is able to secure venture capital by making bold promises and winning over their audience with sheer charisma.
At first, things look bright. The company has the cash it needs to scale fast. However, the executive prioritizes personal gratification over the needs of the team, leading to a stalled project.
Here’s what could happen next: The company misses multiple deadlines, and product quality suffers. Key team members see the writing on the wall and jump ship.
On the other hand, a balanced executive could bring their vision to reality using emotional intelligence and a team-centric approach. They might articulate the direction they envision and get everyone on board by listening to concerns, incentivizing loyalty and cultivating an environment where people are motivated to do their best each day.
Lessons From Elite Teams: The SEAL Framework
The U.S. Navy SEALs offer a masterclass in balancing capability with character. In Extreme Ownership, SEAL leaders Jocko Willink and Leif Babin emphasize that performance alone doesn’t make an elite operator. Trust is a non-negotiable. Further, Simon Sinek, author of The Infinite Game, discusses a SEAL matrix of performance versus trust for evaluating talent:
• High Performance, Low Trust: A toxic leader who delivers results but causes division among team members.
• Moderate Performance, High Trust: A reliable team player who makes the unit stronger, even if they aren’t a top performer.
• High Performance, High Trust: The elite operator who combines exceptional skill with unwavering integrity.
In both Extreme Ownership and The Infinite Game, the authors explain that in SEAL training, a high performer who can’t earn the trust of the team often doesn’t make the cut. Why? They understand that a single toxic individual can destabilize a team. This principle translates directly to the C-suite. A CEO who prioritizes results above everything may achieve short-term wins but risk disaster.
The Economic Context
Psychopathic traits may be advantageous in some corporate roles, but their presence in leadership can cause long-term dysfunction. A CEO who relies on charm to mask their weaknesses or manipulation to deflect accountability may survive for a little while. But their lack of empathy undermines the trust needed for sustained execution.
In contrast, a CEO who is bold but self-aware and empathetic is better equipped to thrive. They make tough calls, but they do so with transparency. Most of all, they are not self-serving. While they probably care about being successful, they’re likely to prioritize what’s best for the organization.
Balancing Decisive Action With Empathy
Psychopathic traits can propel people to the C-suite, but they often undermine the execution needed for lasting success. Therefore, I’ve found that it’s best to find a leader who can balance decisive action with empathy and integrity. Execution isn’t about issuing orders or pursuing personal glory. Elite leaders empower people and unlock the full potential of their workforce.
As your organization looks to add pieces to its leadership team, understand the limits of those who exhibit corporate psychopathic traits. Focus on candidates who embody transparency, decisiveness and authenticity.
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