When it comes to CEO quality, Glassdoor reviews offer a unique window into great leadership based on the opinions of employees – many of whom work closely with executives and have intimate knowledge of day-to-day CEO performance.
Most academic research on CEO quality relies on indirect measures like stock prices or company profits. But those often reflect the influence of many other factors beyond the control of the C-suite. What’s unique about Glassdoor CEO approval ratings is they directly measure CEO quality in a specific, quantifiable way.
Dr. Andrew Chamberlain, Chief Economist at Glassdoor, weighs in on the themes that have surfaced in this year’s Employees’ Choice Awards for Highest Rated CEOs.
What makes a top CEO?
Our research shows that company culture is the single biggest factor driving CEO approval among employees. There’s a clear link between healthy company culture and being a high rated CEO. Workplaces with satisfied employees rate their CEOs significantly higher than those with low worker satisfaction. And employees hold CEOs personally accountable for cultivating a healthy corporate culture. Many of this year’s Best CEOs winners reflect this:
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- # 9 winner Brian Halligan at HubSpot: Overall Company Rating of 4.6 out of 5 stars.
- # 17 winner Sundar Pichai at Google: Overall Company Rating of 4.4 stars.
- # 27 winner Joseph R. Sivewright at Nestle Purina: Overall Company Rating of 4.4 stars.
The Founder’s Mindset
Our research shows that being a founder – or acting like a founder – matters for CEO quality. We examined three types of CEOs: Founders, internally promoted hires, and external hires. The data clearly show that founder CEOs enjoy significantly higher CEO approval ratings than externally hired or internally promoted CEOs. Why? Founders focus on the big picture, constantly motivating employees by reminding them about the mission and vision of the company. Many of this year’s Best CEOs reflect this:
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- # 5 winner Martin Rankin, founding partner at Fast Enterprises.
- # 6 winner Jen-Hsun Huang, founder of NVIDIA.
- # 8 winner Elon Musk, founder of SpaceX.
- # 10 winner Marc Zuckerberg, founder of Facebook.
- #15 winner Marc Benioff, founder of Salesforce.
CEOs Are Not Individual Contributors
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- # 14 winners Corey Schiller & Asher Raphael of Power Home Remodeling: Senior Management Rating of 4.5 out of 5 stars.
- # 7 winner Bob Bechek of Bain and Company: Senior Management Rating of 4.4 stars.
- #48 winner Spencer Rascoff at Zillow: Senior Management Rating of 4.1 stars.
Opportunity Speaks Volumes
Finally, our research shows career opportunity ratings -- whether employees feel like they have an upward career arc and can progress internally -- are a powerful predictor of high CEO approval ratings. Employees view CEOs as being personally responsible for creating career growth paths that move great employees upward over time and allow them to fulfill their career aspirations. Several winners on this year’s list exemplify this finding:
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- # 25 winner Tim Pierce at Morrison Healthcare: Career Opportunities Rating of 4.5 out of 5 stars.
- # 12 winner Dominic Barton at McKinsey and Company: Career Opportunities rating of 4.4 stars.
- # 11 winner Steve Beauchamp of Paylocity: 4.3 stars.
Think your CEO deserves to make next year’s list? Share a review, and it will be considered for Glassdoor’s 2018 Employees’ Choice Awards.
Employers – wondering why your CEO didn’t make the list, and how you can become eligible for next year’s awards? Read here.
*Each list was compiled using Glassdoor’s proprietary algorithm, and each CEO approval rating determined based on the quantity, quality and consistency of reviews during the period of eligibility. For the full methodology, visit here.
