A growing concern among corporate leaders is the mental health struggles that often remain hidden behind closed doors in executive suites. Recent research published in the Journal of Accounting Research is shedding light on this issue by utilizing artificial intelligence (AI) to identify potential signs of depression among CEOs—an issue that has long been overlooked.
The study, conducted by Nargess Golshan of Indiana University’s Kelley School of Business and Mark Cheng from the University of Kentucky, relied on a vocal dataset gathered from non-executives who had undergone mental health evaluations. These evaluations included widely recognized mental health tools such as the Patient Health Questionnaire (PHQ), providing reliable depression scores. The researchers used this data to develop a machine-learning model capable of detecting subtle vocal cues linked to depression—cues that can often go unnoticed by human listeners.
Earnings calls, often characterized by lengthy, uninterrupted speech, were identified as an ideal data source for analysis. The absence of physical communication cues, such as hand gestures, made it easier for the AI to detect vocal markers that may indicate depressive symptoms. Golshan explained, “Because these vocal features are imperceptible to human ears, it’s not something CEOs can train for or intentionally mask.” By analyzing more than 14,500 earnings calls from S&P 500 companies spanning from 2010 to 2021, the study revealed that over 9,500 instances contained vocal indicators consistent with depression.
Depression Does Not Equate to Underperformance
One of the most important takeaways from the study is the recognition that mental health struggles do not necessarily hinder a CEO’s performance. This challenge to the widely held belief that depression leads to poor results is not a new one. Historical figures like Winston Churchill and Abraham Lincoln, among others, have shown that the traits often associated with depression—such as resilience, realism, and empathy—can actually enhance leadership abilities, particularly in times of crisis.
Golshan cautioned against drawing premature conclusions, noting that while depressive markers were associated with increased business risks, including volatile stock returns and heightened litigation, no causal link was found between depression and poor performance. “Depressed CEOs don’t necessarily perform worse. This suggests they may have support mechanisms in place that help maintain their performance,” Golshan said. Additionally, the study found that executives experiencing depression tended to receive higher compensation, a factor Golshan speculated could be related to the need for greater incentives to stay motivated, though she reiterated the importance of not making causal claims at this stage.
Building a Mental Health Ecosystem for Executives
The high-pressure environment of today’s corporate world demands that CEOs prioritize their mental health, not only for personal well-being but also for organizational success. The stigma surrounding mental health in leadership roles continues to be a significant barrier, but ignoring these issues only exacerbates the risks to both individuals and their companies.
Golshan emphasized that the primary goal of the study was to raise awareness among executives and organizations about the prevalence of mental health issues in the C-suite. She advocates for the creation of a mental health ecosystem that supports leaders in managing their mental health, which, in turn, can foster better organizational outcomes.
This ecosystem might include a range of strategies such as executive coaching, peer groups for leaders facing similar challenges, specialized therapists, biometric health monitoring, and AI-driven wellness tools—all tailored to meet the unique demands of high-level leadership.
AI, Golshan clarified, is not intended to serve as a diagnostic tool, but rather as a method for bringing attention to an issue that has remained largely hidden in executive circles. In a world where the lines between personal and professional lives are increasingly blurred, providing leaders with the tools to manage their mental health is not just a luxury—it is a necessity for ensuring both individual and organizational success.
As history has shown, when executives receive the right support, mental health struggles like depression and anxiety need not translate to underperformance. Instead, these challenges, when properly addressed, can drive companies to new heights.
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