Managing a Toxic Star

Not every organization has a toxic star — but if you haven’t encountered one yet, chances are you will.

A toxic star is the high performer who delivers impressive results while damaging the culture. They may be a charismatic leader, a top salesperson, or a brilliant project manager. On paper, they look like a hero. In practice, they drain morale, drive away talent, and leave behind long-term costs that outweigh their contributions.

This is the person you can’t afford to lose…but also can’t afford to keep.

So what should leaders do?

Three Questions to Ask

1. What does “toxic” look like?

Describe the behavior that’s disruptive. For example:

• A sense of entitlement — acting exempt from policies or standards.

• One who takes more than they give.

• Patterns of conflict, control, or disrespect.

• Behaviors that undermine trust or collaboration.

Be specific. Define the behavior, not just the frustration. This will take some thought.

2. Does their performance outweigh the cultural cost?

Is the employee producing revenue at the expense of engagement, retention, and collaboration? Research shows that teams with a toxic star often have 30–40% higher turnover.

So why do you tolerate this person’s bad behavior?

Organizations usually justify toxic stars because of short-term gains:

“The client loves them.”

“They make us a lot of money.”

“They’re the only one with this expertise.”

Does fear of losing revenue persuade you to adopt a “do not confront” mindset? Do you plan to delay action until cultural damage becomes unavoidable?

3. What’s your position?

Leaders must take one of three positions:

• “We’ll live with the toxic individual. The results outweigh the harm.”

• “We’ll correct the behavior without triggering disengagement or flight risk. We’ll insist on change, with coaching and accountability.”

• “We’ll terminate when the timing is right.”

Consider that you might be better off avoiding a toxic worker than holding on to a so-called superstar.

Leadership Strategies to Manage or Prevent Toxic Stars

Organizations and their leaders can minimize the potential of stars becoming toxic. Here are seven steps:

1. Assess their mindset: Are they self-aware and open to growth — or defensive and dismissive? If the latter, a skilled outside coach might be useful.

2. Quantify and share with the person how their behavior affects retention, morale, and performance. Give rigorous feedback. Share both the value they bring and the cultural harm they cause. Example: “Your results are strong, but the way you’re operating is damaging the team. That’s unsustainable.”

3. Redesign reviews and incentives. Don’t just calculate output. Measure culture, collaboration, and mentoring. Document unacceptable behavior.

4. Set clear boundaries that make respect non-negotiable. Communicate that performance is necessary, but insufficient if cultural values are violated. Don’t excuse destructive behavior, even when output is high. Offer concrete support:

“I want to work with you on this. You’ve proven you can achieve what others can’t, and I believe you can channel that same strength into being a culture leader here. I’ll support you with coaching, regular check-ins, and feedback along the way.”

5. Anchor behavior to standards, not personalities. Tie expectations to company values, leadership principles, and team norms.

6. Prepare for both “Stay” and “Leave” scenarios. If they change: Celebrate and recognize the turnaround. If they don’t: Have the exit strategy ready. A high performer who erodes culture ultimately costs more than they deliver.

7. Consider two often-missed features of the toxic star situation: 1) Removing a toxic star often energizes others, revealing talent that had been overshadowed; and 2) Continuing to support a toxic star implicates the employer and often erodes respect for the person at the top.

The Bottom Line

Performance isn’t just about individual results. It’s about how a talented person elevates the whole team. Protecting culture sends a clear message: values matter as much as performance.

A toxic star may shine brightly in the short term, but over time, they cast a long shadow. The strongest organizations are those willing to confront the trade-off and choose culture over chaos.