Chairpersons shape more than governance. They shape how CEOs lead. A new Finnish study examining the relationship between CEOs and board chairs suggests that appreciation, expressed through trust, autonomy, and recognition, may be one of the most influential yet overlooked drivers of executive performance.

Boards devote significant attention to strategy, performance targets, and governance processes. Yet one factor that may strongly influence how a CEO performs often receives far less attention: appreciation.

My new research (CEO experiences of appreciative leadership in the interaction with the chairperson of the board 2025) explores the relationship between CEOs and chairmen and suggests that trust, autonomy, and recognition from the board can significantly affect a CEO’s motivation and leadership effectiveness based on a limited number of interviews with CEOs of limited Finnish companies. 

The findings highlight how the tone of this relationship can shape not only executive performance but also the culture and resilience of the entire organization, in addition to financial profitability. The study also reveals a latent expectation among CEOs for a more human-centered leadership style from their chairman. 

The study highlights that appreciation is not an interpersonal nicety but a core determinant of sustainable performance. By moving from a culture of control to a culture of appreciation, organizations can transform "performance management" into "performance enablement."

The difference between appreciation and its absence is felt powerfully by CEOs

In terms of performance, appreciation allows for faster and more confident decision-making and fosters the resilience needed to lead through crises. 

“When the board truly gets why we’re doing what we’re doing, it fuels my motivation to lead beyond the numbers,” one of the participants mentioned. Conversely, a lack of appreciation leads to emotional fatigue and disengagement, even at CEO positions. As one participant stated, "When results were ignored, my motivation faded despite the bonuses". 

When the relationship between the CEO and chairman demonstrated appreciation, one participant said: ''I felt my chair genuinely wanted me to succeed, not just as an executive, but as a person. That trust made all the difference." However, someone had a contrasting experience. One executive said: ''Silence from the board was harder than criticism. I had no idea where I stood; it was silence, not support." 

CEOs perceived a lack of preparation or industry knowledge among board members as a direct form of disrespect toward their own professional efforts. One participant mentioned that “Having a chair with actual experience in my industry made me sharper. The feedback was actionable”.

Primary enablers for CEO performance 

1. Trust: The foundation of performance

Trust emerged as the most significant motivational factor identified by CEOs. In the social exchange between a CEO and the chairman, trust is the intangible return that fosters a psychologically safe space for strategic dialogue. One of the participants noted that "Knowing where I stand keeps me focused and calm." Another participant mentioned that "He didn’t panic or pressure me—he just said, ‘I trust you’ll find a way.’ That’s powerful leadership."

2. Autonomy 

A recurring theme in the study results is the need for autonomy. Appreciative leadership is often expressed not just by what a chairman does, but by what they refrain from doing. CEOs feel most appreciated when they are granted "space for leadership"—the freedom to lead in their own voice and make decisions without being constantly second-guessed. “What keeps me motivated is the ability to make a real impact without being second-guessed constantly," stated one of the participants. Another CEO mentioned that "I perform best when I don’t have to constantly justify every step. Autonomy boosts execution."

3. Recognition

Despite the formal nature of board governance, interpersonal warmth and relatedness are critical. CEOs highly value chairmen who act as mentors and sparring partners rather than just overseers. "When the chair acknowledged my effort after a demanding quarter, it made me push harder, " mentioned one of the participants. Based on the study findings, CEOs also acknowledged verbal recognition over monetary rewards as seen in the following comment: "A simple acknowledgment after a tough meeting made me feel seen—it had more effect than a bonus."

From ''You learn to expect nothing'' to ''Appreciation fuels energy''

Based on the empirical findings, the study offers several practical suggestions for enhancing the CEO & chairperson relationship:

1. Enforce role clarity and autonomy: Chairmen must avoid daily operational interference. A joint role description should be defined to clarify responsibilities and decision-making authority between roles.

2. Build strong interpersonal connections: The chairman should actively seek to understand the CEO as a person, including their values and performance drivers. This connection is vital for honest dialogue during crises.

3. Provide consistent recognition and feedback: Intangible rewards like verbal acknowledgment are powerful motivators. Boards should use feedback not just to correct, but to model the culture they want the CEO to cascade through the company.

4. Close board competence gaps: Continuous development and structured onboarding for board members are essential. A board that lacks market understanding cannot provide the "appreciative challenge" a CEO needs to grow.

5. Define and develop organizational culture at the board level: Leadership models defined for the organization should also apply to the board. Only a unified culture ensures that the CEO is empowered to perform and lead with enchanted style. 

Conclusion: Appreciation as systemic capability

Based on the empirical findings, appreciation may be seen as a systemic capability referring to the integration of appreciation into the very fabric of an organization, its culture, structures, and routines, rather than being treated as merely an individual leadership style or a set of isolated behaviors. Therefore, it requires a foundation that normalizes respect, feedback, and mutual learning across the entire organization and demonstrates that it is a shared responsibility between the CEO and chairperson. 

The study findings concluded that when appreciation is a systemic capability, it fosters enduring conditions for performance, well-being, and organizational success, ensuring that the positive effects of appreciative leadership cascade through all levels of the company.