In a recent Journal of Accounting Research study, artificial intelligence was used to illuminate a topic that is often hidden in executive circles. Mental health issues in the C Suite. The researchers Nargess GOLSAN of Indiana University’s Kelly School of Business, and Mark Cheng of University of Kentucky started by collecting a dataset of non-executive participants who were assessed for mental health using validated instruments like the Patient Health Questions to determine reliable depression scores. The researchers used this data to create a machine learning model that could detect subtle vocal clues from CEOs.
The earnings calls are a great data source because the long uninterrupted speeches do not contain typical communication cues like hand gestures or other similar things. Golshan said, “Because the vocal characteristics are not audible by humans, they’re something that CEOs cannot intentionally or deliberately mask.” The researchers applied the model to more than 14,500 earnings call transcripts from S&P500 companies from 2010-2021 and found that over 9,500 of them showed markers indicative of 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. Nassir Gaemi’s A First-Rate Madness reveals the links between leadership and mental illness. The traits that are associated with depression can lead to greater resilience, realism and empathy. Golshan warns that premature causal connections should not be made in this study. She said that “no causal links can be drawn” despite the fact that data showed CEOs with depressive traits were associated with increased business risks such as volatile stocks returns and more potential lawsuits. It is interesting to note that the CEOs who were depressed did not perform worse than their peers. “Depressed CEOs do not necessarily perform worse.” Golshan noted that this suggests the CEOs may be supported by mechanisms to maintain performance. Golshan attributes this nuance to depression, and the fact that people with depression may need more incentives to remain motivated. She stressed, however, that, “we cannot make causal claims just yet.”
Setting Up A Mental Health Environment
Today’s competitive, high-stakes corporate environment, admitting mental health struggles does not signify weakness, but rather a strategic imperative. Mental health is still stigmatized in boardrooms, and ignoring these problems only increases the risk. Golshan’s primary goal is to “bring awareness” about mental health issues among executives.
The CEOs need to recognize the importance of cultivating their mental resilience and optimizing it, just as they refine their strategic vision. The ecosystem would include a variety of personalized mental and emotion health strategies, including targeted executive coaching and peer groups of leaders who are in similar situations, as well as therapists that specialize with executives and various AI-driven wellbeing tools. Golshan says,
“AI isn’t a diagnostic tool but it sheds light on a long-hidden issue in executive circles.” It is essential to the longevity of individuals and organizations that leaders have mental health strategies. The history teaches that depression and anxiety are not synonymous with poor performance. When these challenges are supported appropriately, they can propel businesses to new heights.
