The Hidden Cost of Executive Leadership

The Physical Toll of Leading Under Pressure

Industry-wide declines had been going on for nearly two years, and the CEO woke each day with a palpable sense of dread. Layoffs, debt negotiations, and facility closures loomed. Could a turnaround be managed? The pressure kept growing. What the CEO didn’t realize: The stress might actually be shortening his life.

An updated study in the Journal of Finance finds that the accumulation of external stressors, or the relative absence of them, can affect how long those in the corner office live. Experts say the results are not surprising but note that the study analyzes leaders who served several decades ago—which raises worries that the pressing issues CEOs face today, from tariffs to wars to AI, could affect lifespans even more. “A potential CEO has to go into the job with their eyes wide open,” says Joe Griesedieck, Korn Ferry’s vice chairman and managing director of board and CEO services.

Crucially, the cause of the stress examined in the study wasn’t poor leadership or internal mismanagement, but rather the external forces that are largely outside a CEO’s control. These are challenges for which no amount of experience can prepare even a highly capable leader. As Greg Button, president of global healthcare services at Korn Ferry, observes, “The CEO job is inherently stressful, but when you complicate it with not being able to control external market forces, that's where I think boards can help.” Button says that board members can encourage a better CEO mindset during these headwind periods by urging leaders to consider what remains within their control: “Are you creating a positive culture? Are you being disciplined in the execution of the business?”

The study drew on Forbes executive data to identify the lifespans of 1,900 CEOs leading large corporations between 1975 and 1991. It found that overseeing a firm through a severe industrywide downturn—defined as a 30% decline in the median firm’s stock price over two years—reduced a CEO’s life expectancy by an average of 1.1 years. By contrast, steering a firm amid the more stable conditions made possible by 1980s-era antitakeover laws measurably increased longevity: A two-year increase in overall life expectancy was associated with every year CEOs were protected from the stress of takeover attempts. Either way, the study provides a lesson on the heavy toll of leadership. “The role looks attractive on paper, but the air always gets thinner the higher you go,” says Griesedieck.

The Journal of Finance study analyzed an earlier era. Today, however, investors are more demanding, and new issues requiring quick responses appear at an ever-faster pace. While boards can’t control mounting outside forces and do need to hold leadership accountable, they can adjust their input. Experts say the challenge isn’t whether to apply pressure, but how to calibrate it. “Ideally, the board should be supportive,” says Griesedieck. “That doesn’t mean they’re not going to ask tough questions—but they should be in sync.”

Mishandling a CEO can affect more than their lifespan, of course: During a crisis, a strained CEO may default to reactive decision-making. Psychological research shows that stress impairs core cognitive functions—from attention and working memory to cognitive flexibility—undermining not only complex strategic decisions but also more routine, day-to-day judgment calls. That could be especially consequential during periods when insight and discernment from a CEO are needed the most.

To be sure, in times of industrywide downturn, “most CEOs don’t have to be pushed” by board members, says Kevin Cashman, vice chairman of CEO and enterprise leadership at Korn Ferry. “If they do, that’s a preexisting problem.” In many cases, he notes, exerting pressure may add little value—and instead may contribute to an environment that can already feel “inhuman” in its demands. Cashman suggests that a deeper sense of motivation can be helpful: “The stress that CEOs face needs to be met with an elevation of their sense of purpose, because purpose multiplies energy and creates meaning.”

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