CHAUDHRI: CEOs aren't superheroes – so why do we expect them to be?
· Toronto Sun
We have a peculiar habit of turning successful business leaders into larger than life, super humans.
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We expect that in their professional and personal dealings they exhibit unimpeachable character.
We study their morning routines, quote their management philosophies and marvel at their ability to build companies worth billions, sometimes trillions, of dollars. We put them on magazine covers, invite them to deliver commencement speeches and treat their business instincts as evidence of almost universal wisdom.
Then, when they demonstrate that they are human after all, we seem genuinely surprised.
Nvidia founder Jensen Huang resigns
The sudden resignation of Nvidia founder Jensen Huang this week should give executives and corporate boards plenty to think about. Huang spent more than three decades building Nvidia into one of the world’s most consequential technology companies, only to depart amid revelations about his personal relationships , and unresolved questions involving corporate security and espionage .
Those questions deserve proper investigation and I am all but sure this is but the beginning of what could be a more involved story.
But Huang’s departure raises a bigger question for me: have we become so enamoured with visionary leaders that we’ve forgotten the dangers of building entire corporations around one individual?
Consider Elon Musk , whose personal life hardly resembles a cookie cutter, conventional family portrait typically associated with corporate leadership. His relationships, 14 children and lifestyle have been extensively discussed in public, often with his participation.
His openness is unapologetic and unvarnished. By allowing so much of his personal life into the public domain, Musk has arguably made it harder for revelations about his unconventional family arrangements to come as a corporate surprise. Whether intentional or not, he has demonstrated that transparency can sometimes reduce the power of personal disclosure.
Of course, openness is no guarantee against reputational damage. Musk’s public controversies have also created significant challenges for Tesla. But owning the life you choose to live is not the same as demonstrating poor professional judgment.
Musk’s personal story is honest, and fully owned by him. There is no whiff of deception. Musk, arguably leaves you to take him as he is, or not.
Holding yourself out as someone you are not, is the obvious problem for any leader in the spotlight. When the other shoe drops, concerns around one’s integrity abound.
Sometimes scrutiny entirely justified
As an employment lawyer, I have seen how differently organizations assess conduct depending on an employee’s position. An ordinary employee’s private difficulties may have little bearing on their employment. For a CEO, however, questions about personal judgment can quickly become questions about professional fitness.
And sometimes that scrutiny is entirely justified. Conflicts of interest, dishonesty, workplace relationships involving unequal power and compromised confidential information are legitimate corporate concerns. Leadership carries responsibilities that extend well beyond the boardroom. Perception as to a leader’s honesty is always a major consideration.
But must every personal failing become a professional disqualification?
I would argue that companies have a responsibility to distinguish between human imperfection and conduct that genuinely undermines someone’s ability to lead. They have a responsibility to protect leaders from bearing every reputational risk.
There is also a lesson here for corporate boards. When an organization’s reputation, culture and strategic direction become inseparable from one individual, the company assumes enormous risk. Thousands of employees and shareholders may find their futures affected by circumstances entirely beyond their control. Ask anyone who is a shareholder in Nvidia this week about their feelings on this point.
That is why succession planning cannot be something boards discuss only when a crisis emerges. Strong organizations develop independent leadership, encourage accountability and build institutional reputations that extend beyond their founders.
And executives themselves should welcome that independence.
There is nothing wrong with celebrating exceptional leaders. Businesses need visionaries, risk-takers and people willing to challenge conventional wisdom. But exceptional leadership should never require personal infallibility. To err, is human, after all.
Perhaps the greatest achievement of a CEO isn’t becoming indispensable, it’s building a company strong enough that it doesn’t need a superhero to survive.
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The content of this article is general information only and is not legal advice.