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Why Are Failing Top-Level Leaders Often Rewarded Financially?
In today’s world, leadership is often glorified, with leaders receiving admiration and rewards for their perceived successes. But what happens when leaders fail? Why are top-level leaders who don’t meet expectations still financially rewarded? This paradox in leadership raises significant questions about how we define success and measure leadership effectiveness.
The Romance of Leadership: Why We Over-Attribute Success to Leaders
The concept of the “Romance of Leadership” explains our tendency to attribute a company’s success or failure primarily to its leader. We often view leaders as the architects of an organization’s fate, believing they are the ones pulling the strings behind the scenes. This perception can be misleading, especially in today’s complex and interconnected world.
In reality, success in organizations is the result of collective effort, shared leadership, and collaboration across all levels. Yet, when things go well, we shower praise and financial rewards on the figurehead at the top, often overlooking the contributions of the entire team. Conversely, when things go wrong, leaders may still receive golden parachutes and lucrative severance packages, leaving us to question the fairness and logic behind these rewards.
