When Charismatic CEOs Are an Asset — and When They’re a Liability

Starting in the 1980s, a generation of larger-than-life CEOs became full-blown celebrity, but over time, research suggested that charismatic CEOs tended to have drawbacks at leaders. However, charisma can be especially useful in two business concepts with big unknowns: entrepreneurial startups and corporate turnarounds. In these settings, when everyone — investors, employees, customers, suppliers — is dealing with enormous uncertainties, a leader’s charisma can give people the faith necessary to take risks.