ABSTRACT
Corporate titans celebrated in the business press and on magazine covers often see their strategies, enterprises or reputations go on to plummet. Examples include stars “Neutron Jack” Welch of GE, Facebook founder Mark Zuckerberg and WeWork’s Adam Neumann. But how real is this hero-to-zero phenomenon? Is there a natural course of success and failure among CEOs, as with athletes who suffer injuries or go into decline after appearing on the cover of Sports Illustrated? Behavioral finance research shows that celebrity distracts CEOs, suddenly in demand as TV pundits, book writers and board members of other companies. Hubris leads them to overestimate the synergies they can derive from mergers and acquisitions. And fame makes it harder for executives to deviate from the traits they are known for. This chapter argues that many business journalists are susceptible to the cult of celebrity – and fraudsters such as Elizabeth Holmes and Sam Bankman-Fried – because they aren’t equipped to question financial statements and market judgments. Reporters should seek safety in the corporate numbers, not in the numbers of other journalists providing cover. One bright spot, comedy news, relies on skepticism and bigger budgets to disrobe emperors, offering a new watchdog model.
