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Mature CEO looks are correlated with company performance
When it comes to big business, appearances it seems, matter a lot. Companies tend to be more profitable if they have a chief executive with a face rated by observers as being more competent, dominant and mature.
Similarly, companies with a chief executive judged to be a good leader, based purely on his facial appearance, also tend to be more profitable. These associations still hold even after controlling for the influence of age and attractiveness.
As Nicholas Rule and Nalini Ambady, who conducted the research, point out: it isn't at all clear whether chief executives with a certain kind of appearance help their company towards profit, or if instead profitable companies choose to employ chief executives who look a certain way.
Here is more information.
Posted by Tyler Cowen on February 7, 2008 at 06:26 AM in Economics | Permalink
Comments
I wonder how much correlation there is between the looks which make a good CEO, and the looks which make a successful politician?
What isn't mentioned is how its easier to get ahead in all things if one looks confident, dominant and mature. People with that sort of look can do better in other environments that makes their resumes more attractive, so they are more likely to be eligible candidates for a CEO position. I suspect the influence of looks goes far beyond hiring practices.
That said, Bill Gates looks like a wimp, not a leader.
Posted by: Grant at Feb 7, 2008 7:29:09 AM
There is a considerable evolutionary psychology literature which suggests that humans can read individual traits in bodily visual cues (faces, body shape, behaviours etc.) much more accurately than random.
Indeed, it would be surprising if humans could not - given the strong evolutionary pressure for accurate assessment of other people's dispositions.
Cornell economist Robert H Frank is one of the contributors to this field.
The results of this study look like a specific example of this well-established general phenomenon.
Posted by: BGC at Feb 7, 2008 8:16:19 AM
They saying "after a certain age a man is responsible for his own face" applies. People's faces to some degree reflect their thinking and behavior. Male magazine models are an obvious example. They tend to be handsome, even beautiful, but they never seem to look authentic, especially when modeling business suits. They don't look right portraying powerful and successful businessmen, because they aren't and their faces cannot hide their lack of experience.
My point is that the reason appearance matters is that appearance reflects actual competence (especially in video or in person compared to still images). And though appearance of the CEO is a less than perfect indicator...compared to what? Dense financial documents?
Posted by: Greg Rehmke at Feb 7, 2008 8:20:34 AM
Here's how the result can be interpreted: actual good leaders (as proven by company performance) look like what they are. There is, no great surprise, some correlation between being a good leader and looking like one. And similarly, good athletes look like good athletes, and so on. Turning it around: observers have a better than chance ability to correctly read a person's character and ability from his appearance.
As a matter of fact, the remainder of the linked article suggests just this ("naive observers are somehow able to extract information ... from a brief glance at a chief executive's face").
Posted by: Constant at Feb 7, 2008 10:34:07 AM
Perhaps all companies would prefer to hire CEOs with mature looks, but since successful companies can presumably bid more than the less successful, they are the companies which end up with these CEOs.
Posted by: Kevin Postlewaite at Feb 7, 2008 12:11:08 PM
Is this the same stuy cited in The Economist a couple of weeks ago?
Posted by: Holger Siebrecht at Feb 7, 2008 1:37:04 PM
Is this the same stuy cited in The Economist a couple of weeks ago?
Posted by: Holger Siebrecht at Feb 7, 2008 1:39:20 PM
What about the suggestion that appearance (or height, or whatever) causes popularity in adolescence, which encourages a winning personality, which contributes to success?
Posted by: Nick Tarleton at Feb 7, 2008 2:37:21 PM
The article doesn't seem to specify where the images were obtained. It seems to me that the larger effect is the ability of the CEOs' photographers and makeup artists to portray them as "competent, dominant and mature."
Posted by: Christian Conkle at Feb 8, 2008 8:09:30 AM
I love correlation studies.
Also, in correlating baldness and marriage, bald men are much more likel yto be married....
Posted by: Finance Monk at Feb 8, 2008 11:21:53 AM
Personally, I believe this conversation could easily encompass all leaders and leadership – and not just CEOs. How many people will vote for the next President of the United States based solely on their appearance? Because he (or she; you’re welcome Hilary) “looks” like a president (or in this case a leader). Some people believe one’s looks have every bit as much to do with one’s success as education and/or experience. People are biological drawn to what appeals to them visually and otherwise.
Furthermore, a CEO or leader is often the representative sum of that which he represents. Who wants a feeble, unintelligent leader or CEO? And for that matter, who wants an eye-soar representing their city, state, country, or company? We like being associated with smart, successful, and YES beautiful people. Perfect example; examine all of the former Presidents of the US before and after public media. If you are honest, you notice a trend. Additionally, if you can find them, look at the runners-up. Maybe it’s just a coincidence…
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Every success is based on continuous efforts. It is not possible be done over nigh. so he had this result is difficult
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Posted by: aura at May 13, 2009 3:52:22 AM
It is enlightening! we should study the successful men
Posted by: tom at May 13, 2009 3:54:00 AM
