Why CEO Personality Matters More Than You Think
Traditional business literature has long portrayed the chief executive officer as a rational, self‑interested decision‑maker. Recent research from the University of Amsterdam challenges that view, demonstrating that a CEO’s life experience, values, family situation and personal qualities exert a stronger influence on strategic direction than previously assumed. For executives, board members and talent‑acquisition professionals, understanding these dynamics can sharpen hiring, mentoring and succession planning.
Key Findings from the University of Amsterdam Research
Feminine Leadership Traits Boost Corporate Social Responsibility
Using text‑analysis of shareholder letters from the S&P 100, the study assigned each CEO a masculinity/femininity score based on language use. CEOs—regardless of gender—who scored higher on feminine traits invested significantly more in corporate social responsibility (CSR) initiatives such as sustainable environmental practices and employee well‑being. The effect was strongest in companies with lower business risk and weaker shareholder influence.
Political Orientation and Socio‑Economic Background Shape Sustainability Focus
Progressive CEOs and those from both lower and higher socio‑economic backgrounds were more likely to prioritize social and environmental goals, including inequality reduction, climate action and biodiversity conservation. Conservative, middle‑class CEOs tended to emphasize economic objectives like growth, innovation and job creation. Interestingly, CEOs who were highly open to change showed less dependence on socio‑economic background when setting sustainability priorities.
Marriage, Parenthood and Growth Outcomes
The research also uncovered a link between family circumstances and company growth. Married CEOs, on average, achieved higher growth rates, while CEOs with children tended to see lower growth. In highly leveraged firms with substantial long‑term debt, the marital status of the CEO had a muted effect on growth outcomes.
Practical Implications for Boardrooms and Talent Management
Beyond the Resume: Evaluate Values and Worldview
When selecting or mentoring a CEO, boards should look beyond past performance metrics. Assessing a candidate’s values, life experiences and personal worldview can provide insight into how they will steer strategic decisions. Structured interviews that probe ethical frameworks, risk tolerance and long‑term vision can surface these traits.
Align Leadership Traits with Corporate Purpose
Companies with a strong CSR agenda may benefit from leaders who exhibit feminine traits—empathy, collaboration and a focus on stakeholder well‑being. Conversely, firms prioritizing aggressive growth or market expansion might seek CEOs with decisive, risk‑taking characteristics. Matching personality profiles to corporate purpose can enhance strategic coherence.
Consider Family Context in Succession Planning
Family circumstances can influence a CEO’s focus on growth versus stability. Boards should discuss these dynamics openly, ensuring that succession plans account for potential shifts in strategic priorities that may arise when a CEO becomes married or has children.
Foster an Inclusive Culture that Values Diverse Traits
Organizations that embrace a spectrum of leadership styles—both masculine and feminine—tend to perform better on sustainability metrics and stakeholder satisfaction. Implementing diversity‑and‑inclusion initiatives that recognize the value of varied personal characteristics can create a more resilient leadership pipeline.
Next Steps for Leaders and Boards
1. Integrate Personality Assessments into the CEO selection process to capture traits that influence strategic direction.
2. Align Leadership Development with corporate purpose, ensuring that training programs reinforce the desired blend of traits.
3. Monitor Family Dynamics as part of ongoing executive coaching, recognizing how personal life stages can shift strategic focus.
4. Encourage Cross‑Functional Dialogue between HR, finance and strategy teams to evaluate how CEO traits impact long‑term outcomes.
Explore Leadership Development Opportunities at the University of Amsterdam
The University of Amsterdam offers executive education programs that blend behavioral science with strategic management. These courses can help leaders understand how personal characteristics shape decision‑making and equip them with tools to align their traits with organizational goals.
Ready to deepen your understanding of CEO behavior? Explore our executive programs today.
Get Involved and Share Your Insights
Have you observed the impact of personal traits on corporate strategy in your organization? Share your experiences in the comments below or schedule a free consultation with our executive coaching team to discuss how to apply these findings to your leadership pipeline.
For more research on CEO behavior and strategic decision‑making, read our latest publications or submit your application today to join our next cohort of business leaders.
