Expert Opinion: The Isaacs Effect in Entain

After a thorough search, Entain has chosen Gavin Isaacs as its new CEO. Gaming expert John Bruford has waxed philosophical on the subject of the 'best CEO' for IGB.

Gavin Isaacs' selection as CEO of Entain appears to be one of those rare occurrences that pleases nearly everyone involved. What makes this situation so unique? 

Defining effective leadership is challenging, likely because we all have different expectations and desires when it comes to others. While many of us can point to figures like Churchill and Lincoln as examples of good leadership, there's less consensus around what constitutes a poor leader. The truth is, perceptions of leadership are not as clear-cut as we might wish them to be.

A good leader - who is he?

I reflected on this question following the announcement of Gavin Isaacs' appointment as CEO of Entain. I'm a huge admirer of Gavin; his expertise and sense of humour are impressive. He has been at the helm of some of the industry's most significant deals, yet he remains incredibly approachable, which sets him apart. 

I see him as a Walter Bugno-type leader, someone who prioritises building an exceptional team and appreciating their contributions over seeking self-aggrandisement.

I've long held this belief professionally: the editor serves as the umbrella—offering support and protection that enables the team to excel while taking the brunt of the criticism for the collective success.

You mentioned the word "hero," but that’s not how I’d label it.

In a leadership role, your primary function is to facilitate and empower others to perform at their best. If things go well, you receive accolades and recognition as a great leader, while the team's hard work shines through. Yet, if challenges arise, the responsibility often lands solely on your shoulders. That’s the essence of leadership, isn’t it? When all goes right, you’re celebrated; when it goes wrong, the buck stops with you.

Is Gavin Isaacs a sure bet for Entain?

Gavin's recent appointment has been warmly welcomed across the industry, not solely due to his popularity. There's a widespread hope that he will excel in his new role, and this expectation seems universal. MGM's Bill Hornbuckle expressed his satisfaction, describing the appointment as "very promising" and asserting that Isaacs will "do wonders for this business and ultimately the entire gaming market."

However, this leads me to ponder an interesting point. Isaacs is widely regarded as a genuinely nice person. There's a common belief that nice individuals can quickly experience burnout, suggesting that success in business requires a more cut-throat demeanour. The stereotype implies that being nice equates to being weak, but this notion is fundamentally flawed, as anyone with life experience can attest. Conversely, the corporate arena often rewards certain personality traits that might be unacceptable in everyday interactions. Traits often associated with psychopathy or abusive behaviour—such as a lack of empathy, manipulative tendencies, and an inflated sense of self-worth—can ironically serve one well in the boardroom.

In challenging business situations, it may seem more beneficial to consult someone with a ruthless edge—a Hannibal Lecter type—rather than a more affable adviser like George Clooney’s character in Up in the Air.

Hyper-aggressive behaviour, self-promotion

I inquired with a gaming executive about the dynamics in boardrooms. He remarked, “Hyper-aggressive tendencies, self-promotion, and a hint of sociopathy can be advantageous for climbing the corporate ladder. While such traits may not serve you well once you reach the top, they certainly aid in getting there.” His desire for anonymity likely stemmed from a genuine concern for his safety. Following this perspective, I discovered that researchers estimate that as many as 15% of senior executives may exhibit psychopathic characteristics. This insight is quite logical; we’re discussing individuals who possess the ability to captivate an audience and assert themselves, often requiring others to align with their vision for success.

Personality cult

It goes beyond mere intelligence or competence; in a landscape where shareholders hold significant influence, leaders must possess charisma. People need to have faith in them—it's akin to a personality cult. 

If you doubt the existence of such a cult, just observe the fervent admiration directed at prominent CEOs and business figures today: think Steve Jobs, Elon Musk, and even Donald Trump, who once managed to orchestrate multiple bankruptcies at a time when anyone could strike it rich with minimal effort.

The CEO has become integral to your corporate identity and is a crucial element of the brand you convey to consumers. In today’s environment, if your CEO faces allegations of misconduct, it's nearly impossible to remain silent; the potential damage to the brand is far too significant. Even institutions like the Catholic Church have come to recognise this reality, highlighting that we are indeed living in a new and challenging era.

Setting the tone, creating control

In this context, it's important to recognise that CEOs also establish boundaries, serving as role models for others in the organisation. Without clear and firm boundaries, violations can occur at any level. As my unnamed supervisor once remarked, “The ideal model of a modern CEO is someone whom frontline employees admire and the leadership team reveres.”

But the notion of psychopathy is concerning, isn’t it? However, let's not overly fixate on the terminology. 

As Karen Landay, now an associate professor of management at the G. Brint Ryan College of Business at the University of North Texas, mentioned in an interview with Forbes a few years back, “Clinical psychopathy is a personality disorder identified by a medical professional. That’s not the focus when discussing psychopathic CEOs; rather, we’re referring to individuals with really unpleasant personalities.” 

Not Gavin, of course. And I'm not just saying that out of fear he'll retaliate.