CEOs who scored at the low-end of our Personality Analysis churned at a 46% rate over a two-year period vs. 9% for the peer group.
Our CEORater Fintech arm published a CEO Personality Analysis in May 2018 (Access HERE). CEOs who scored at the bottom of that analysis churned at a 46% rate from May 2018 through July 2020 as compared to 9% for the rest of the CEO peer group.
Our May 2018 CEO Personality Analysis, scored a group of 56 Mid-Cap Software CEOs using the Big 5 Personality model. We applied the model using a Natural Language Processing (“NLP”) tool applied to public company earnings call transcripts. From our perspective, the most important of the Big 5 personality traits is that of Openness.
CEOs who score high for Openness are: a.) intellectually curious, b.) value uncommon thought processes, c.) are creative thinkers, d.) are less prone to selective perception bias, e.) exhibit strategic flexibility and encourage experimentation and risk-taking. These are key traits one would want a CEO to embody in a fast-moving, dynamic industry such as the Software Industry.
CEO churn detail for the CEO cohort that scored 90 or below for “Openness” (46% CEO churn rate): access PDF HERE.
CEO churn detail for the CEO cohort that scored above 90 for “Openness” (9% CEO churn rate): access PDF HERE.
We are working to include this NLP-based capability in our CEORater platform as a self-service offering for 2021.