The apparent status of having a “celebrity CEO” heading a large organization creates a strong impression that the organization will be successful and forms an almost irresistible force compelling stakeholder commitment. However, a newly appointed celebrity CEO and the celebrity’s co-creators run the risk of becoming over-confident, over-optimistic and over-committed to what may be a failing strategy. We explore a case in which this risk became reality. We use a dramaturgical perspective to analyse Air New Zealand’s failed acquisition of Ansett Australia in 2001 and describe how the CEO, financial intermediaries, media and stakeholders co-created an unfolding drama marked by the CEO escalating the firm’s commitment to the failing acquisition as a way of maintaining an illusion of control, which helped preserve the CEO’s celebrity identity. We consider the implications for the various types of stakeholders in organizations and for the study of organizational leadership.
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