AI may help detect CEOs silently suffering with mental health issues.
A recent study published in the Journal of Accounting Research leveraged artificial intelligence to shed light on an issue hidden behind closed doors in executive circles: mental health struggles in the C-Suite. Researchers Nargess Golshan of Indiana University’s Kelley School of Business and Mark Cheng of the University of Kentucky began by assembling a vocal dataset from non-executives who had undergone various validated mental health assessments using instruments such as the Patient Health Questionnaire to establish reliable depression scores. This groundwork enabled them to train a machine-learning model to pick up on the subtle vocal cues that may indicate depression from CEOs.
Earnings calls serve as an ideal data source for this kind of analysis because they offer long, uninterrupted speech stretches free from typical communication cues such as hand gestures and other similar ones. Golshan explained, “Because these vocal features are imperceptible to human ears, it’s not something CEOs can train for or intentionally mask.” By applying the model to over 14,500 earnings calls from S&P 500 companies spanning from 2010 to 2021, the researchers found that more than 9,500 instances exhibited markers consistent with depression.
Depression And Mental Health Struggles Don’t Equate to Underperformance
The pervasive narrative that mental health struggles necessarily hinder performance is an oversimplification—a misconception that even historical figures like Winston Churchill and Abraham Lincoln, amongst others, challenged. As highlighted in A First-Rate Madness: Uncovering the Links Between Leadership and Mental Illness by Nassir Ghaemi, the very traits associated with depression may lead to more resilience, realism, empathy, and the ability to lead effectively in a time of crisis. In this study, Golshan cautions against drawing premature causal links.
“No causal connections can be made,” she noted, even though the data revealed that CEOs displaying depressive markers were often associated with higher business risks, such as volatile stock returns or increased potential litigation cases. However, it is more intriguing that these CEOs did not underperform relative to their non-depressed peers. “Depressed CEOs don’t necessarily perform worse. This suggests they may have support mechanisms in place that help maintain their performance,” Golshan observed. The study also noted that depressed executives tended to receive higher compensation—a nuance that Golshan attributes to the possibility that individuals battling depression might require greater incentives to stay motivated. Nonetheless, she stressed that “we can’t make causal claims yet.”
Establishing A Mental Health Ecosystem
In today’s high-stakes, competitive corporate atmosphere, acknowledging mental health struggles is not a sign of weakness—it’s a strategic imperative. The stigma surrounding mental health in the boardroom is firmly entrenched, but turning a blind eye to these issues only exacerbates the risks. Golshan emphasizes their primary aim is “to bring awareness to executives and companies on the issue.” Building a strong and flourishing mental health ecosystem begins with eradicating the notion that seeking help is burdensome.
CEOs must recognize that cultivating and optimizing their mental resilience is as critical as refining their strategic vision. This ecosystem could encompass various personalized mental and emotional health strategies—ranging from targeted executive coaching, peer groups consisting of similar leaders in the trenches, therapists specializing with executives, and biometric health monitoring along with various AI-driven wellness tools—all tailored specifically to the unique pressures of modern business and leadership.
Golshan puts it, “AI is not a diagnostic tool, but shedding light on an issue that has long been hidden in executive circles.” In an era where the boundaries between personal and professional life are increasingly blurred, equipping leaders with mental health strategies is no longer a luxury; it’s essential for individual and organizational longevity. History teaches us that managing depression and anxiety is not synonymous with low performance. These challenges, when appropriately supported, may propel companies to unprecedented heights.
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Julian Hayes II