Nitin Nohria: Why it's so hard for CEOs to stay grounded

Nitin Nohria, former Dean of Harvard Business School, explores the subtle, corrosive process by which chief executives lose touch with reality. Through personal observation of a once-humble CEO who transformed into an entitled leader over five years, Nohria illustrates how the 'bubble' of corporate power gradually distorts a leader's perspective. This phenomenon, often mistaken for simple narcissism, is frequently a byproduct of the extreme environment surrounding top executives, where constant deference and specialized treatment become the new baseline for daily life.

Data from a study co-authored by Nohria and Michael Porter reveals that CEOs work an average of 62.5 hours per week, often sacrificing weekends and vacations. This relentless schedule, combined with the emotional burden of making difficult corporate decisions, creates a psychological justification for perks. As one leader noted, there is an 'emotional asymmetry' in the job, where executives absorb the stress of others without expressing their own, leading them to view luxury accommodations and private transport as fair compensation for their immense personal sacrifices.

This loss of grounding is not entirely new, as evidenced by the 2002 controversy surrounding Jack Welch’s retirement package, which included extensive company-funded luxuries. While some security measures, such as those implemented following the 2024 shooting of UnitedHealthcare CEO Brian Thompson, are essential, they often contribute to the insulation of the executive. Harvard colleague Rakesh Khurana describes this as 'structurally induced narcissism,' where the constant adulation and the tendency of subordinates to orient themselves around the CEO’s preferences make detachment almost inevitable.

The ramifications of this detachment are profound, as it alters a leader's understanding of the lives of their employees and customers. When a CEO no longer notices the extraordinary treatment they receive, they risk losing the empathy required to lead effectively. This creates a disconnect that can alienate the workforce and lead to poor decision-making. The danger lies in the quiet nature of this shift; it happens incrementally, making it difficult for the leader to recognize that their sense of 'normal' has been fundamentally compromised by their position.

To combat this, Nohria suggests that boards must actively audit executive accommodations, while CEOs themselves must cultivate 'truth tellers' and maintain connections with people who do not care about their professional status. By deliberately choosing inconvenient paths—such as driving oneself or eating in employee cafeterias—leaders can preserve their connection to the reality of their staff. Ultimately, maintaining humility requires constant, disciplined effort to step outside the bubble and view one's own behavior from an external, objective perspective.