Finance Seminar（2015-11）

Topic: Are CEOs Born Leaders? Lessons from Traits of a Million Individuals

Speaker: Matti Keloharju, Aalto University

Time: Wednesday, 22April, 10:00-11:30

Location: Room 217, Guanghua Building 2

Abstract: Our study combines a near-exhaustive sample of CEOs of Swedish companies with data on their cognitive and non-cognitive ability and height at age 18. Although CEOs, and large-company CEOs in particular, have better traits than the population on average, they are neither exceptional in any of the traits nor their combination. Large-company CEOs belong to the top 5% of the population in their traits, but to top 0.2% in pay. The mismatch between the moderately high trait values and the exceptionally high pay explains why less than a quarter of the CEO pay premium over the population can be attributed to the traits.