Mad Hatter

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DEFINITION of 'Mad Hatter'

A CEO or managerial team whose ability to lead a company is highly suspect. A mad hatter CEO will often make puzzling decisions which many, inside and outside the firm, may question. These types of CEOs are also known for making spontaneous decisions with little thought for the consequences. Sometimes these decisions are driven by personal incentives rather than the motivation to improve the overall performance of the company.

INVESTOPEDIA EXPLAINS 'Mad Hatter'

Mad Hatter refers to one of the many strange characters in Lewis Carroll's "Alice's Adventures in Wonderland." At the tea table, Alice meets the Mad Hatter, who is eternally caught in tea time and constantly quizzing Alice with nonsensical and unanswerable questions. Typically, mad hatter CEOs don't last long in their positions.

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