by Julie Telgenhoff
In the high-stakes, "all-hands-on-deck" environment of a small startup, a manager’s personality can be the difference between a unicorn and a collapse. While most people look out for the "Overt" narcissist—the loud, bragging egoist—it is the Covert Narcissist who poses the greatest threat.
In a small company where one person is given full power, a covert narcissist doesn’t just manage; they colonize.
The Mask: The "Selfless" Professional
Unlike their overt counterparts, covert narcissists lead with humility and victimhood. They present themselves as the hardest worker, the most misunderstood, or the “only one who truly cares” about the owner’s vision.They don’t demand the spotlight; they manipulate others into shining it on them. In a startup, they become the owner’s right hand by being hyper-reliable and intensely loyal—at least on the surface.
The Target: Jealousy as a Weapon
In a startup, talent is the primary currency. If a manager perceives a subordinate as more innovative, better liked, or more naturally gifted, the covert narcissist doesn’t compete—they sabotage.
Because their ego is fragile, they view a high performer’s success as a personal insult. Their sabotage is rarely an explosion; it’s a slow leak:
- Gaslighting: They withhold "need-to-know" information, then blame the employee for the resulting mistake.
- The "Vague" Critique: They give confusing directions so the employee can never truly succeed, then quietly frame the employee’s struggle as a “lack of ability.”
- Isolation: They frame the talented individual as "not a fit" or "difficult to work with," cutting them off from the rest of the team and calling them into HR incessantly.
The "Fatal Attraction" and the Ignorant Owner
The most dangerous element is the bond between the manager and the owner. This is often a "fatal attraction" dynamic where the manager acts as a social shield and emotional sycophant for the founder.
The manager anticipates the owner’s needs and mirrors their values perfectly. They make the owner feel brilliant and protected. When the sabotaged employee eventually complains, the owner turns a blind eye because:
- Emotional Dependency: The owner has come to rely on the manager to handle the "messy" human parts of the business.
- The "Hero" Narrative: The manager has convinced the owner that everyone else is lazy or disloyal, and only they are keeping the ship afloat.
- Sunk Cost: The owner has given this person so much power that admitting they are toxic would mean admitting a catastrophic lapse in judgment.
Because the owner has no idea he is being lied to and manipulated—he is too focused on maintaining his image to see what is actually happening inside his own company.
The Startup Stink Spiral
When a covert narcissist is given total control, the startup loses its most valuable asset: its talent. High-performers leave or get taken out, the culture turns toxic, and the owner is left with a "loyal" manager presiding over a graveyard of missed opportunities. The narcissist's only goal is to be the last one standing next to the owner—Second in command, protected by the parasitic ‘yes sir’ culture.
The final result of this dynamic isn't failure, but a profitable, hollowed-out shell. In this "Success at Any Cost" model, the company continues to scale, bringing in massive revenue driven by a workforce of "yes people" the owner desperately relies on to maintain his ego.
Because the numbers are up, the owner remains blissfully unaware that he is being surgically manipulated by the manager he handed over full control. He is too preoccupied with his perfect public standing to notice that his "right hand" is actually a gatekeeper filtering his reality and stunting his growth.
Beneath the financial growth, the culture is a wasteland. Abuse is actively rewarded as "high performance," while genuine concerns are ignored or silenced. The office air is thick with the metaphorical smell of frustration and decay—a stagnant odor of suppressed talent and fear. As the manager systematically eliminates anyone she perceives as a threat, the "fatal attraction" deepens; she gets exactly what she wants—power, luxury, and control—while the owner attributes the high turnover and toxic atmosphere to "the price of greatness." In this environment, the company makes millions, but it breathes through the fragrance of a rancid parasitic stench.



