CEO as Performance Actor

“Ivar was about to use the two important oratorical lessons he had absorbed from giving hundreds of speeches to investors in Europe: speak from memory, and use lengthy pauses. First, he rubbed his hands together - a long-standing habit - to show he did not plan to use any notes. Second, he paused. And then he paused some more. And then some more. Ivar had learned the power of silence. He liked to make eye contact with everyone in the audience, one by one, and he did so slowly, before he uttered a word.”

“Modern business leaders follow his footsteps and missteps. The chief executive officer today is an essentially political position, which requires men and women to assume public postures that often conflict with their true personalities. Many corporate executives who confront this tension become infected with hubris, as this man did. Like him, they come to believe they can overcome any skepticism and dig out of any financial hole, no matter how deep. Given the complexity of accounting, they, and their employees, manage reported earnings in a way that diverges from reality. Securities analysts and journalists entice them to repeat optimism so frequently that they come to believe it, just as he did. Some corporate officers become mentally unstable as the pressure mounts, especially at times of calamity. Many have unhappy endings.”