This paper examines the psychological traits and attitudes of senior executives, particularly CEOs, and their impact on corporate decisions. The authors administered psychometric tests to a sample of U.S. and non-U.S. CEOs and CFOs to assess their risk aversion, optimism, and time preference. Key findings include: 1. **Attitudinal Differences**: U.S. CEOs are significantly more optimistic and risk-tolerant than the general population and non-U.S. CEOs. They are also more optimistic than CFOs. 2. **Risk Aversion and Time Preference**: CEOs who are risk-averse are less likely to be compensated with performance-related packages, while those with a high time preference are more likely to be paid a higher salary. 3. **Career Paths and Demographics**: CEOs tend to be older, taller, and have attended more prestigious universities. They are less likely to have an MBA degree compared to non-U.S. CEOs. 4. **Correlation with Corporate Decisions**: The study finds that CEO characteristics significantly influence corporate policies such as capital structure, debt maturity, and acquisition activity. For example, companies with more risk-tolerant CEOs are more likely to initiate mergers and acquisitions. 5. ** Compensation Patterns**: The results suggest that pay-performance sensitivity decreases with risk aversion, which aligns with agency theory predictions. The study contributes to the literature on behavioral finance by providing direct evidence on the role of CEO traits in corporate decisions and compensation. It also highlights the importance of individual heterogeneity in corporate finance and governance.This paper examines the psychological traits and attitudes of senior executives, particularly CEOs, and their impact on corporate decisions. The authors administered psychometric tests to a sample of U.S. and non-U.S. CEOs and CFOs to assess their risk aversion, optimism, and time preference. Key findings include: 1. **Attitudinal Differences**: U.S. CEOs are significantly more optimistic and risk-tolerant than the general population and non-U.S. CEOs. They are also more optimistic than CFOs. 2. **Risk Aversion and Time Preference**: CEOs who are risk-averse are less likely to be compensated with performance-related packages, while those with a high time preference are more likely to be paid a higher salary. 3. **Career Paths and Demographics**: CEOs tend to be older, taller, and have attended more prestigious universities. They are less likely to have an MBA degree compared to non-U.S. CEOs. 4. **Correlation with Corporate Decisions**: The study finds that CEO characteristics significantly influence corporate policies such as capital structure, debt maturity, and acquisition activity. For example, companies with more risk-tolerant CEOs are more likely to initiate mergers and acquisitions. 5. ** Compensation Patterns**: The results suggest that pay-performance sensitivity decreases with risk aversion, which aligns with agency theory predictions. The study contributes to the literature on behavioral finance by providing direct evidence on the role of CEO traits in corporate decisions and compensation. It also highlights the importance of individual heterogeneity in corporate finance and governance.