Follow us on
Share this page

CEOs Who don’t Win Awards Acquire More Companies

April 18, 2017 in Leadership

CEOs who don't win awards perform better

Being at the topmost level of the corporate hierarchies, it’s easy to presume that CEOs are the most aggressive, assertive, and competitive professionals. And, this notion is correct. CEOs are indeed the most competitive.

But, they display their competitiveness in different forms. While some of them win the awards, the others who fail to win the awards acquire more companies! No matter how counterintuitive it might sound, this is true.

A research conducted by Harvard Business Review have revealed some startling facts about the CEOs who fail to win awards and their acquisition spree.

Let’s “review” the review from Harvard Business Review!

About the research

Harvard Business Review conducted an analysis of the CEOs from S&P 1500 firms that won awards between 1996 and 2000. It identified 200 CEOs who won various awards from prestigious institutes such as Forbes, Harvard Business Review, and Business Week. These 200 CEOs were classified as the superstar CEOs who were highly popular, received wide recognition, and also had higher salaries than their counterparts who didn’t win awards.

According to the research, for ever superstar CEO, 24 competitor CEOs didn’t receive the same level of accolades as the superstars. Thus, in the phase of the research, HBR identified 1450 non-superstar CEOs.

More awards and accolades don’t mean more acquisition

The research yielded the result that just because a CEO was a superstar, it didn’t mean he or she also acquired more companies. Rather, their competitors bought more businesses in this phase. The research highlighted a crucial fact that the competitor CEOs who didn’t win any awards increased their acquisition activity by 22% post losing out on the awards.

HBR analyzed the data for the four years preceding an award and four years post awards. It identified this 22% increase in the post-award period by the CEOs who lost to their competitor CEOs.

Acquisitions are inversely proportional to awards

The analysis and the conclusion of the research suggest that acquisitions are inversely proportional to awards. Those who won acquired fewer companies than those who didn’t. The CEOs who missed out an award actually increased their acquisition after missing out an opportunity to win an award.

Although this fact might seem self-contradictory, a psychological analysis will shed more light on it. The assumption stated at the beginning of this article suggested that the CEOs are the most competitive professionals. So, those CEOs who lose to their contemporaries in winning the awards become more competitive and aggressive.

They want to prove themselves in the real world of business that not winning an award isn’t going to put them down. Rather, they aim at proving that awards are mere trophies and certificates that don’t matter to them. Instead, they win in the real world of cut through competition, and their success manifests from the number of companies they acquire.

Concluding Words

Losing an award matters a lot for the CEOs. They take it as a challenge and a driving force for success. To prove their worth, they acquire more companies than their award winning competitors. It also shows that success and failure are in mind and those who put all their energy after a defeat emerge on top.

Leave a reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Click here to subscribe our quarterly publication icube.