Researchers have developed a novel method to assess depression in CEOs by using machine learning models, a type of artificial intelligence, to analyse vocal acoustic features from conference call recordings. This innovative approach, detailed in an article published in the Journal of Accounting Research, provides insights into a mental health issue that often remains hidden in high-pressure executive roles.

The researchers examined how CEO depression is related to career outcomes, compensation, and incentives. Their findings suggest that CEOs with higher levels of depression tend to receive larger compensation packages, and more of their compensation is linked to performance. Additionally, depression is associated with a stronger sensitivity of CEO departures to performance outcomes.

Collectively, these findings suggest that CEOs with depression have a heightened responsiveness to negative feedback and a diminished sensitivity to positive feedback.

"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," said Nargess Golshan, Ph.D., an assistant professor at Indiana University Kelley School of Business.

Source:

Journal of Accounting Research