There are inherently two separate questions subtly embedded in the subject-line question, and it seems to me that the responses are blurry as a result, addressing both questions to some degree without separating the two underlying premises.
“Talent as a CEO” could be the skills and abilities to acquire the position. This is being covered above as the politicking and sociopathy and empty sloganeering and other traits we generally think of as negative.
But “talent as a CEO” could also refer to the skills and abilities that allow someone to successfully lead the company. This is also being covered above with the references to getting along with people and occasionally inspiring them.
In my experience, CEOs tend to be strong in one area or the other, but only rarely in both.
Years ago, I was a drone at a Fortune 500. When I started, the CEO was the entrepreneur who had originally started the company. He was the rare example of a CEO who could leverage both skillsets as needed. He knew how to be ruthless when necessary, cutting departments and laying off people when it was clear their function was a dead end in the larger company mission, but he also knew how to communicate a vision so people would connect with it and be motivated to pursue it.
Then he orchestrated the acquisition of the company by a global holding firm and left to found another tech startup. He was replaced as CEO by the CFO of the holding firm, and that guy was a total jackass whose skillset fell entirely into the “political suckup” category. He had no vision beyond “keep making stuff so I can count the money that it brings in, and report it to the board.” He seemed baffled by how the various pieces of the company worked together; he kept making noise about cutting departments and laying off people solely on the basis of their apparent marginal value, but the C-suite people around him (mostly holdovers from the prior CEO) kept talking him out of it because those functions strategically supported and fed a pipeline of ideas and features into the more lucrative departments, and the company would quickly go downhill without them.
Right now I work at a smaller company whose CEO is almost entirely the “inspiring leader of people” type. He has incredible vision, and an incredible capacity for communicating it and getting people to buy in. But he’s also soft-hearted about us, and shies away from sometimes necessary confrontation when the company really does need him to step in and take sides. And he sank a huge amount of money into a visionary product launch because he fell in love with the conceptual premise of it and couldn’t understand that there was no hard value proposition for customers, even though many of us were trying to steer him onto a more sensible, conservative path. His ability to inspire won out, and we’ve spent two years banging our heads against the wall of a predictably unreceptive marketplace.
So when I hear the question, “what makes a CEO talented,” my automatic response is, “talented at what exactly?”