Researchers at Indiana University's Kelley School of Business developed a method to assess depression in CEOs by analyzing vocal acoustic features from conference call recordings using machine learning models.
The study delved into how CEO depression relates to career outcomes, compensation, and incentives. Findings suggest that CEOs exhibiting higher levels of depression tend to receive larger compensation packages. Notably, a greater portion of their compensation is linked directly to performance metrics.
Depression among CEOs is also associated with a heightened sensitivity to negative feedback, as evidenced by a stronger correlation between performance outcomes and CEO departures. Conversely, these executives show a diminished sensitivity to positive feedback. Collectively, the results indicate that depression affects how CEOs respond to various performance signals, potentially influencing their decision-making processes.
Nargess Golshan, PhD, an assistant professor at the Kelley School of Business, emphasized the importance of this research. "Considering the widespread nature of depression among executives, additional studies are needed to understand contributing factors, how depression affects business decisions, and strategies for managing depression in leadership roles," she said.
The detailed findings of this study have been published in the Journal of Accounting Research, offering valuable insights into the intersection of mental health and corporate leadership. As the pressures of executive positions continue to mount, understanding and addressing mental health challenges becomes increasingly crucial for both personal well-being and organizational success.
The article was written with the assistance of a news analysis system.