CEOs should have been the fall guys; why are they still heroes?
CEOs Should Have Been the Fall Guys; Why Are They Still Heroes?
Table of Contents:
- The Illusion of Control: When Crisis Met Corporate Hubris
- The CEO’s Post-Crisis Comeback: From Scapegoat to Savior
- The Rise of the Celebrity CEO: More Than Just a Title
- Why the Idolization Persists: The Psychic Shield of Executive Mystique
- The Fantasy of the Uncontrollable Market
- Actionable Insights for Today’s Leaders
The Illusion of Control: When Crisis Met Corporate Hubris
Remember September 15, 2008? Lehman Brothers, a titan of finance, imploded, triggering a seismic shockwave that sent the global economy teetering on the brink of collapse. The ensuing financial crisis wasn’t just a blip; it was a stark, undeniable revelation of how precariously balanced our economic world truly was. For a moment, it felt like neoliberal capitalism, the reigning economic philosophy, was staring into the abyss of a serious legitimation crisis.
Think back to December 2008, when then-US President Barack Obama famously took the heads of major American auto firms to task. They’d flown to Washington in private jets, expecting a bailout, only to be met with a public scolding. "Couldn’t you all have downgraded to first class or jet-pooled or something to get here?" a frustrated Democratic representative famously quipped. "It would have at least sent a message that you do get it." This wasn’t just about saving a few bucks; it was about a profound disconnect between those at the top and the reality faced by everyone else.
For a fleeting period, the titans of industry seemed as vulnerable as the everyday worker. The catastrophic failure of Lehman Brothers and subsequent events exposed a critical truth: many CEOs and their financial strategists were flying blind, lacking a true grasp of market mechanics or a real ability to control them. It felt as though the global free market had simply driven off a cliff, leaving ordinary citizens to brace for the impact. In that moment, the CEO morphed from a presumed hero into a convenient fall guy.
The CEO’s Post-Crisis Comeback: From Scapegoat to Savior
Fast forward a decade, and it’s almost surreal to recall how radically the CEO’s position of power was questioned in 2008. Yet, here we are. CEOs didn’t just recover their stride; they’ve emerged stronger, often glorified as unparalleled visionaries and ideal leaders. And those corporate jets? They were soon back in service, the brief, symbolic belt-tightening of the immediate aftermath a distant memory.
The Cult of the Celebrity CEO
Today, figures like Elon Musk, Mark Zuckerberg, and even Larry Fink embody a new breed of celebrity CEO. They’re hailed not just as business leaders, but as personal heroes capable of saving the world. This phenomenon extends to stalwarts like Jamie Dimon at JPMorgan Chase or Tim Cook at Apple. Yet, this widespread adulation unfolds against a backdrop of escalating global inequality, starkly highlighted by exorbitant CEO compensation packages. Consider Amazon’s former CEO, Jeff Bezos, whose earnings could dwarf those of his warehouse workers by nearly a million to one – a truly staggering disparity.
More disturbingly, this narrative reached its apex when millions of Americans, swayed by the promise of a business-savvy leader, elected an ostentatiously wealthy CEO, Donald Trump, as President. In his acceptance speech, Trump explicitly linked his business acumen to his political triumph: "I’ve spent my entire life in business, looking at the untapped potential in projects and in people all over the world. That is now what I want to do for our country."
This unwavering veneration of the CEO as a heroic figure, epitomized by the Trump presidency, has propelled corporate leadership into a new stratosphere. CEOs are now seen not merely as skilled business operators, but as aspirational role models across all facets of life. We’ve entered what can only be described as a "CEO society," where the qualities of a lionized corporate executive are expected to drive transformation not just in business, but in politics, personal careers, and even relationships.
This pervasive admiration begs the question: how did CEOs manage to reclaim their hero status so effectively after 2008, an event that should have been their undoing? The hope was that the crisis would usher in a new era of economic fairness and justice. Instead, that promise seems more distant than ever.
The Fantasy of Executive-Led Recovery
In the immediate aftermath of 2008, there was a palpable demand for accountability. People wanted CEOs to be held responsible, even prosecuted. This was a practical outcry born of job losses, shuttered businesses, and government austerity. In such a climate, with top executives tarnished, who could possibly lead the charge for economic revival?
What emerged from this peril was a compelling, albeit fantastical, narrative of executive-led recovery. This story allowed the CEO’s damaged reputation to make a remarkably swift comeback. It played perfectly into a familiar crisis archetype: the belief in a return to an idealized, stable past before the chaos. We saw echoes of this in Brexit’s promise of renewed sovereignty and in populist slogans like "Make America Great Again." These desires for stability and a return to perceived normalcy are understandable, explaining the resurgence of free-market heroism.
But this narrative only scratches the surface. While individual executives like Martin Shkreli or Harvey Weinstein might face condemnation for their egregious behavior, the idea of the CEO has been burnished anew, retaining an almost mythical allure.
Why the Idolization Persists: The Psychic Shield of Executive Mystique
The financial crisis tapped into a primal fear: the unsettling realization that the complex economic systems we created might be beyond human control. This resonated with a broader anxiety about our own lack of agency. Suddenly, individuals were confronted with the terrifying possibility that their lives were subject to the unpredictable whims of a market that felt increasingly detached and supernatural. What was once the secular god of wealth seemed to have transformed into a far more reckless deity, indifferent to the humans who worshipped at its altar.
This swift rehabilitation of the CEO’s image wasn’t merely a practical necessity to cling to the material benefits of capitalism. It was a psychological imperative, a psychic shield against the fear of dehumanization by a runaway economy. In essence, we craved the illusion that someone was in charge, even when evidence pointed to the contrary. If hope could be restored, perhaps everything else could be forgiven.
Maintaining faith in the CEO became an assertion of individual power to shape destiny. It was about holding onto the heroic archetype so that people could, by extension, regain a sense of control over their own lives. This faith was less about empirical evidence and more about a fundamental human need for something to believe in when reality becomes too harsh. When the truth is unbearable, fantasy offers solace.
This is the same faith that allows people to believe that an impulsive, bombastic leader can guide a nation to greatness, simply because they project an image of business success. When Trump declared he would run the U.S. like a business project – "under budget and ahead of schedule" – enough people bought into the fantasy to propel him to the White House. This speaks volumes about the power of perceived control in uncertain times.
The Fantasy of the Uncontrollable Market
CEOs, in the popular imagination, represent the embodiment of control over a market that appears chaotic and indifferent to its human cost. This yearning for control is a direct counterpoint to the lived experience of millions who find themselves on the losing end of rising inequality and who face the stifling effects of rigid political ideologies.
Beyond the CEO Myth: What Real Leadership Looks Like
The allure of the CEO as a problem-solver often overshadows the complex, systemic issues at play. While individual leaders can influence outcomes, true progress requires a broader understanding of Strategic Operational Planning and the implementation of robust Leadership Execution Strategies. It’s about building resilient systems, not just relying on charismatic individuals.
Consider the realm of technological advancement. The narrative often centers on visionary founders. However, successful Leadership in Digital Transformation requires a deep understanding of team dynamics, fostering collaboration, and empowering individuals at all levels. It’s about enabling innovation, not just dictating it.
What Would You Do?
Imagine you are leading a team during a period of significant economic uncertainty, similar to the post-2008 era. Your team is anxious, morale is low, and there’s a growing sentiment that leadership (both yours and at the corporate level) is out of touch. External pressures are mounting, and the market feels unpredictable.
How do you, as a leader, navigate this? Do you lean into the "hero" narrative, projecting an image of absolute control and certainty? Or do you acknowledge the uncertainty, foster open communication, and focus on empowering your team to find solutions collaboratively?
Actionable Insights for Today’s Leaders
The adulation of CEOs as infallible heroes, particularly after a crisis that exposed their fallibility, is a complex psychological and societal phenomenon. It highlights a deep-seated human need for certainty and control in an increasingly unpredictable world. However, clinging to this fantasy is ultimately detrimental.
For leaders today, the takeaway is clear: authenticity, transparency, and a genuine commitment to empowering teams are far more sustainable and effective than the projection of a mythical heroic persona. True leadership involves navigating uncertainty with integrity, fostering resilience, and building systems that empower everyone, not just the person at the top.
This requires a shift from the "CEO as savior" model to one that embraces collaborative problem-solving, ethical governance, and a realistic understanding of market dynamics. It means focusing on developing strong Project Manager Leadership Skills, nurturing Effective Team Communication Strategies, and championing Leadership for Innovation that is grounded in reality.
Ultimately, the next crisis shouldn’t be met with a renewed faith in a singular, heroic leader. Instead, it should be an opportunity to build more robust, equitable, and adaptable systems, guided by leaders who understand that true strength lies in collective capability and shared responsibility. This is the foundation for sustainable growth and genuine progress, moving us away from the seductive, yet ultimately hollow, myth of the CEO hero.
This article was originally published at Aeon and has been republished under Creative Commons.
On 15 September 2008, the giant financial services firm Lehman Brothers filed for bankruptcy, starting a chain reaction that saw the global economy spiralling toward total collapse. The global financial crisis that ensued revealed just how fragile and unstable the world economic order really was. If there was ever a time that neoliberal capitalism should have faced a legitimation crisis, this was it.
One only needs to think back to December 2008 when the then US president Barack Obama scolded the heads of the largest US auto firms for flying to Washington in private jets to ask for financial bailouts. As one Democratic Party representative added: ‘Couldn’t you all have downgraded to first class or jet-pooled or something to get here? It would have at least sent a message that you do get it.’
For a short time after the crash, those on the top of the corporate ladder seemed as powerless as those on the bottom. The failure demonstrated that neither chief executive officers (CEOs) nor their financial advisors had much of an idea of how the market worked or how to control it. All that was left for modern citizens was to brace themselves as a runaway global free market fell off the proverbial cliff. The CEO suddenly appeared like a fall guy for the crash rather than as a hero.
Fast-forward 10 years, and it’s hard to believe that the economic and political supremacy of the CEO could have even been put into radical question the way it was in 2008. CEOs never really lost their stride and, now more than ever, they are considered to be visionaries and idealised as leaders. Nor did they lose their corporate jets. Other than for a brief symbolic belt-tightening immediately after the crisis, CEOs were soon flying high again on company planes.
Today, business founders such as Elon Musk, Mark Zuckerberg or even Larry Fink epitomise a new class of celebrity CEOs, seen by so many as personal heroes who can save the world, and the same goes for the larger array of employee CEOs such as Jamie Dimon at JPMorgan Chase or Tim Cook at Apple. Yet all the while, CEOs participate in a world economy wracked by increasing inequality, as epitomised by the kind of obscene CEO remuneration that sees the likes of Amazon’s boss Jeff Bezos earning almost a million times that of the workers in his warehouses.
More ominously, millions of Americans voted for an ostentatiously super-rich CEO, electing Donald Trump as their president. In his acceptance speech, Trump praised his own business acumen as being key to his political success: ‘I’ve spent my entire life in business, looking at the untapped potential in projects and in people all over the world. That is now what I want to do for our country.’
The barely interrupted veneration of the CEO as a hero, marked most expressively by the Trump presidency, has brought us to a point today where CEOs are not just valued for their skills in business but have become role models in all walks of life. We now live in what we call a ‘CEO society’: a society where corporate leadership has become the model for transforming not just business, but all human activity, where everyone from politicians to jobseekers to even those seeking love are expected to imitate the qualities of the lionised corporate executive.
The contemporary adulation and admiration of CEOs raises the question of what enabled their continued idolisation, given what could well have been their fall from grace 10 years ago? At the time, many hoped that the sad devastation of the crisis might open the door for an economic and political paradigm shift that would usher in a fairer, more equal and just society. It’s not that this promise of change has not arrived, it’s that it seems farther away than ever.
After 2008, for a brief time, people clamoured for CEOs to be held accountable and be prosecuted. This was, not least, a practical matter. With jobs being lost, shop fronts being boarded up, and politicians crying austerity, what people wanted above all else was economic recovery. Yet with the world’s top executives in disgrace, who could lead such a dramatic economic revival?
What arose from peril was a novel fantasy of executive-led recovery that allowed the shattered reputation of the CEO to stage a prompt, if not miraculous, comeback. This played into an appealing crisis narrative. With such a narrative, all faith must be invested in the recuperation of an imaginary golden past that existed before the upheaval. Most recently, this has manifested in Brexit’s investment in the promise of a renewed British sovereignty, as well as in populist political rallying cries such as ‘Make America Great Again’.
These desires for recovery and return are of course perfectly understandable, and they clearly shed light on why ideologies of free-market heroism thrived again after crisis. But this still only scratches the surface of why CEOs continue to be idolised by so many. Whereas individual executives from Martin Shkreli of Turing Pharmaceuticals to Harvey Weinstein of Miramax might be reviled for their greed, corruption or abuse of power, the CEO – as an ideal – has been reinstated with a solid-gold allure.
The financial crisis pointed to a deep insecurity rested in the fear that it was futile for humans to control the economic world that we had created, and this reverberated with a more general fear that we lack agency more widely. Suddenly, people were pushed into facing the possibility that their lives were lost to the whims and unpredictable fate of a supernatural market. Where since the advent of the 20th century it had been righteously condemned that ‘money is the secular God of the world’, now it was feared that finance had become an even more reckless God, one who cared little for the humans who worshiped at his gilded altar.
The quick rehabilitation of the image of the CEO in the popular imagination was not just a practical matter of wanting to hold on to the material benefits afforded by neoliberal capitalism. It was a psychic measure needed to counteract the fear of dehumanisation at the hands of a runaway Frankenstein economy. In other words, we just wanted to pretend that someone was in control, even if all the facts and evidence were telling us that this wasn’t the case. Everything could be forgiven if hope could be returned.
The retention of the CEO myth was an assertion of the power of individuals to shape events and control their destiny. To achieve this meant holding on to the heroic character of the CEO such that people might regain a sense of control over their own lives too.
Maintaining faith in the CEO was less a matter of empirical fact and more a symptom of a human need to find something to believe in at the end of a hard-earned day; with the reality too hard to bear, the fantasy had to return. Held out was the promise that everyone could receive grace if only he accepted the modern CEO gospel. This is the very same faith that allows people to believe that the business acumen of an impetuous, loud-mouthed, misogynist bully is able to lead America to greatness. When Trump said that he would run the US like a business project, ‘under budget and ahead of schedule’, enough people believed him to pave his way to the White House.
CEOs represent the ability to be in control of a market that appears uncontrollable and uncaring of its profound human costs. This desire for control belies the reality for too many people of being on the wrong side of the rising tide of inequality, and of being subjected to the tyranny of a new singleminded political authoritarian intolerance. Let’s hope that with the next crisis we learn that we need to let go of the fantasy of the CEO.
This article was originally published at Aeon and has been republished under Creative Commons.
