Executive leaders accrue power in their capacity as agents acting on behalf of shareholders. The strength of ownership power depends on how closely the leader is linked to shareholders and board members. A leader’s ownership power is also associated with how much money he or she has invested in the firm. An executive who is a major shareholder is much less likely to be fired by the board than one without an equity stake.

The CEOs of high-technology firms are typically company founders who later convert the firm into a publicly held company by selling stock. After the public offering, many of these CEOs own stock worth several hundred million dollars, making their position quite secure. The New Golden Rule applies. The person who holds the gold rules.