I suppose the impression is that an academic would only fall back on his/her title because he/she is not particularly well known and needs some way to impress others. It looks bad.
Why is this different in industry?
The difference between academics and business is that "Dr." and "Prof." are appointed titles, while CEO is self-given without having to meet any prerequisites or requirements.
Something that I didn't appreciate until I was in grad school was that not all professors are even "Professor." Becoming a full professor is a big deal. An "Assistant Professor" is generally someone who has a tenure-track position, but does not have tenure yet. "Associate Professor" is for someone who has tenure. "Professor" is for someone who has tenure, and has contributed enough to the school through research and teaching to earn being a full professor.
Similarly, "that guy commanding the ship" is called "captain" regardless of actual rank [1].
These self-appointed titles formulated as acronyms, C[insert domain]O, is the quintessential cue that capitalists are self-important militarists. Of course I mean militarists only in the lightest (and perhaps hyperbolic) terms for how a large corporation organizes their positions (occupations) of power internally and behave or affect some group(s) of society.
Internally, most notable positions of power are denoted by their domain of command then rank (or title), highest obviously being an 'officer.' Externally the company as a whole will only act on its interests while engaging a so-called 'threat' in a 'fight or flight' fashion. I often forget how young capitalism really is, and while this characteristic is certainly less apparent in smaller organizations it is the 'de facto' operative standard in how larger corporations conduct their-self in the market.
Anyone can technically become a CEO for $89. It only has meaning when attached the success of companies.
A top academic is well known and everyone will automatically assume that he/she has a PhD and a respectable position at his/her university, so mentioning the title is redundant.
Thanks for making me hunt, asshole. Anyway, he didn't go to high school and is an "autodidact."
But then once the guys in sales get more impressive sounding title, everybody wants one and thus, title inflation.
I'd also say that being more realistic and grounded will drive you more to achieve that level of success people often believe they've reached in their illusions. If you're a CEO of a revolutionary web 2.0 company operating in stealth mode, and you don't see any traction, you'll be more likely to give up because reality isn't falling inline with the ridiculous expectations you've set in place.
I will admit, I am guilty of this at times.
If you cringe at that, watch this funny bit http://www.kungfugrippe.com/post/218485518/merlinlabs