MITPress: We find that award-winning CEOs subsequently underperform, both relative to their prior performance
and relative to a matched sample of non-winning CEOs. At the same time,
they extract more compensation following the awards, both in absolute
amounts and relative to other top executives in their firms. They also
spend more time on public and private activities outside their
companies, such as assuming board seats or writing books. The incidence
of earnings management increases after winning awards. The effects are strongest in firms with weak corporate governance. Our results suggest that the ex post consequences of media-induced superstar status for shareholders are negative.