Why do successful people do stupid things to ruin their future after they have everything?

There are some common reasons behind this. This article is compiled and I hope it will be inspiring to you.

History has proven that high levels of achievement often come at a very high price. Leaders are often most vulnerable to ethical, moral, or legal errors in judgment or decision-making at the peak of their careers. Just when they seem to “have it all,” they often do something risky (or stupid) that ruins it all. We often call this the paradox of success.

Sam Bankman-Fried exemplifies this paradox, becoming the latest cautionary tale of the dangers of greed and hubris. For several years, many viewed the founder of the FTX cryptocurrency exchange as the “poster boy” of cryptocurrency. At the height of his financial success, he was ranked 41st on the Forbes 400 list of the richest people with a personal net worth of approximately $26 billion.

On March 28, 2024, he was sentenced to 25 years in prison and ordered to forfeit approximately $11 billion in assets. He was convicted of seven criminal charges, including wire fraud, commodities fraud, securities fraud, money laundering, and violations of campaign finance laws.

Bankman-Fried is just one example. There are countless examples of leaders who have been brought down for indiscretions such as accounting fraud, embezzlement, sexual misconduct, and perjury. It is becoming increasingly difficult to find leaders who can maintain the public’s respect over long and distinguished careers.

So why do successful leaders make bad decisions when they have the most to lose?

While the exact answer is obviously person- and situation-specific, there are some common patterns that help explain why leaders self-destruct at the height of their powers.

1. Privileges

As executives advance in their careers, they benefit from a host of perks, including greater power, higher status, greater influence, a greater sense of personal fulfillment, and greater benefits and financial rewards.

2. Greater autonomy and less supervision

Successful executives have greater control over resources and decision-making processes, and have greater access to information, people, and resources. In many cases, they have the ability to set their own agenda without direct day-to-day supervision. Greater autonomy coupled with less supervision can either free individuals to achieve greater success or spell disaster.

3. Increasing isolation at work and at home

As leaders climb the corporate executive ladder, they can no longer share their concerns with their peers and colleagues in the workplace. This dilemma, combined with a large amount of time away from home, can cause them to experience an increasing sense of personal isolation and a lack of intimacy in their relationships. Over time, this can lead to a growing disconnect from reality.

4. Dissatisfaction with the status quo and desire for more

As loneliness increases, they tend to feel dissatisfied with their current situation, so they may begin to crave more and more success. This can increase their stress about not being able to achieve their goals, leading to constant anxiety and worry about the future.

5. Overconfidence

Cumulative success can lead managers to inflate their perceptions of their ability to manipulate or control situations. This self-centered mindset can cause leaders to become rude, closed-minded, disrespectful, and prone to extreme negative emotions. They often begin to act outside of the norms and rules that have governed their behavior to date and helped them succeed.

6. The power to escape consequences

Extreme success can lead executives to believe that they are somehow immune to the ethical, policy, or legal requirements that apply to the rest of us. In such situations, executives may take dangerous actions. Yet, they arrogantly assume they can avoid the consequences. Or, they may think they are so smart that they won’t get caught.

7. Boredom and excitement seeking

When executives have exceeded their career expectations in terms of position, compensation, and benefits, and there is little else they can aspire to on a career level, executives often step back and ask themselves. “Is this all there is?” If there is nothing to achieve, they may pause and ask themselves, “What’s the point?”

At this point, boredom sets in. This leads executives to start taking bigger and bigger risks just for the thrill of it, to see if they can get away with it.

8. Early advantages later became disadvantages

The strengths and assets that leaders possess can also become a liability under the right circumstances. This is especially true during times of high stress. Confidence and charisma are positive leadership traits, but they can easily lead to arrogance and blind spots.

9. Lack of Emotional Intelligence

A good leader should have emotional intelligence so that they can manage their feelings and understand how others feel. Leaders who are not emotionally intelligent often find it difficult to establish strong bonds with their employees, which leads to poor interaction and reduced motivation. They may also lack understanding of what their subordinates need emotionally hence this might lead to misunderstandings and conflicts among members of the team. Again a person in charge who fails to control his or her emotions may cause a hostile atmosphere at work reducing productivity and increasing employee turnover. Ultimately, this flaw will destroy a leader’s reputation as well as undermining his/her ability to perform well

Preventing self-destruction

So how can companies prevent their leaders from self-destructing once they reach the top?

One way is to build “guardrails” to help protect them from common risk points.

Some helpful strategies include 360-degree performance feedback, executive coaching, and leadership training. Policies that promote a healthy balance between work and personal life for executives, as well as access to therapists, counselors, or employee assistance programs, can also help. These strategies are likely to have the greatest success when combined with an ethical organizational culture based on respect, clear expectations, and personal responsibility.

Success is intertwined with the risky actions that leaders can take, and this is clearly a dangerous crossroads. No matter how much power and success they have, leaders need to understand that if they stop striving for excellence and succumb to temptation, it can all be lost very quickly.