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Pay me with fame, not mammon: CEO narcissism, compensation, and media coverage

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  • Aabo, Tom
  • Jacobsen, Mikkel Lilholt
  • Stendys, Kasper

Abstract

We show that narcissistic CEOs are willing to sacrifice compensation for media coverage. The results of our study imply that firms with high media coverage exploit the narcissistic CEO’s desire for attention and acclaim by granting such a CEO a smaller monetary compensation. Our findings are important in understanding the interplay between CEO narcissism, CEO compensation, and the firm’s media coverage. Our results are statistically significant, robust, and economically meaningful.

Suggested Citation

  • Aabo, Tom & Jacobsen, Mikkel Lilholt & Stendys, Kasper, 2022. "Pay me with fame, not mammon: CEO narcissism, compensation, and media coverage," Finance Research Letters, Elsevier, vol. 46(PB).
    • Handle: RePEc:eee:finlet:v:46:y:2022:i:pb:s1544612321004712
    DOI: 10.1016/j.frl.2021.102495
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    References listed on IDEAS

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    Cited by:

    1. Alves, Carlos F. & Guedes, Maria João, 2022. "Narcissistic leaders do not share! The relationship between top managers' narcissism and the distribution of value added," Finance Research Letters, Elsevier, vol. 49(C).
    2. Greiner, Michael & Kim, Jaemin & Cordon Thor, Jennifer, 2023. "Narcissistic CEOs and their corporate political activity," Journal of Business Research, Elsevier, vol. 163(C).
    3. Aabo, Tom & Rønnow, Sara Korsdal, 2024. "Female CEOs with a squeeze of narcissism: A perfect cocktail for corporate performance?," Finance Research Letters, Elsevier, vol. 64(C).
    4. Malik, Mahfuja & Jebari, Fatima, 2023. "Product recall and CEO compensation: Evidence from the automobile industry," Finance Research Letters, Elsevier, vol. 54(C).
    5. Dmytro Osiichuk, 2022. "The Driver of Workplace Alienation or the Cost of Effective Stewardship? The Consequences of Wage Gap for Corporate Performance," Sustainability, MDPI, vol. 14(13), pages 1-26, June.

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    More about this item

    Keywords

    Behavioral corporate finance; CEO narcissism; CEO compensation; Media coverage;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G40 - Financial Economics - - Behavioral Finance - - - General

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