Here's Why the CEO'S Marriage Matters

A study from the National Bureau of Economic Research shows that CEOs who are not married make more aggressive and volatile choices as leaders than their married peers do. The research shows that investing in firms led by an unwed CEO is a riskier investment than investing in firms with a married CEO.

However, I believe that the quality of a leader’s marriage should also be closely considered by investors.

Why? Well, while research shows that being married is good for your career (as it comes with higher paychecks and increased promotions), it can also be difficult to manage a work/life balance when you are married and have children. And, if your marriage is faltering, it’s going to take a huge toll on your performance at work, especially if you are the CEO.

That is why wise investors should care if their CEO’s marriage is on the rocks.

As a CEO coach, I have witnessed the toll that a divorce can take on a CEO’s focus and their ability to be present and forward-thinking while on the job. Many leaders make a last-ditch attempt to spend more time at home and focusing on their marriage, so not only are they not emotionally present, they are also physically absent as they spend more time in counseling or on family vacations. Sadly, it’s often too little, too late, and the CEO then becomes further distracted by divorce proceedings and custody issues.

And when a CEO's marriage fails, it could spell trouble for the investors in more concrete ways as well. Let's say the CEO in question is a founder who owns 30% or more of the shares. A divorce can force a CEO to add an unfriendly shareholder – their soon-to-be-ex spouse-- or they may have to divert time away from growing the business in order to do fundraising to buyout their ex during a divorce settlement.

So what should investors do?

While you can’t pry into your CEO’s marriage, you can help to encourage a strong work/life balance, and you can help to encourage a family-friendly culture where spouses and children are seen as a vital part of the organization. You can also include perks like on-site counseling or exercise centers to help motivate people to make healthy habits and de-stress before they head home. The goal is to create a workplace environment that encourages positivity and mindfulness, both on the job and at home.

Working with an executive coach can also have a tremendous impact.

CEOs who partner with a professional coach often find the benefits reach well beyond their initial expectations. While most who enter an executive coaching program do so for career-related purposes, they frequently discover the results have a significant positive impact across multiple areas of their lives.

The self-awareness and leadership skills gained through executive coaching pave the way for improvement in business, but also tend to make us better spouses, parents, and generally a better, happier, more centered version of ourselves.