CFO Pressure Warning: Bed Bath & Beyond CFO's Suicide Sparks Industry Reflection

On the Friday before Labor Day weekend this year, Gustavo Arnal, the 52-year-old chief financial officer of Bed Bath & Beyond, was in New York Citywhen he took his own life, a news that sent shockwaves through Wall Street and beyond.

The heartbreaking news opened a new discussion: how growing economic pressures challenge the mental health of even the most seasoned financial leaders, and what steps corporate America can take to alleviate the strain.

Days before his death, Arnal joined other executives of the home goods retailer based in Union, New Jersey, in a public conference call with analysts to provide updates on the company's turnaround plan. They detailed a strategy that included difficult steps such as store closures and layoffs. These measures may have overshadowed the positive news of more than $500 million in new financing commitments from lenders.

"Closing stores and laying off employees is a difficult decision," Arnal said on August 31 during anaudio webcast recording. "However, these steps reflect a strategic shift that will allow us to concentrate resources on the areas of the business that offer the highest returns, to drive sustainable long-term profitable growth."

Of course, outsiders often find it difficult to fully understand why someone would end their own life. But according to a September 8Wall Street Journal report, Arnal had recently been described as under immense pressure due to the escalating Bed Bath & Beyond crisis, working 18-hour days, and company officials had planned to consider giving him time off after the holidays.

The report also said he was stressed by misunderstandings from some people and the media regarding his August stock sale, as they did not acknowledge that the transaction had been pre-arranged in April.

A company spokesperson confirmed in a September email to CFO Dive that Arnal's stock trades were part of a pre-set plan established in April, when there was "no specific knowledge of the market at the time of the trades." Bed Bath & Beyond did not respond to subsequent requests for comment on what measures the company might have taken before Arnal's death or on the Wall Street Journal report.

Not invincible

After his death, tributes from friends and colleagues who worked with him throughout his career—including at Avon, Walgreens, Alliance Boots, Procter & Gamble, and Bed Bath & Beyond—flooded social media. They recalled a talented person with a "silly" sense of humor who didn't mind popping into colleagues' offices to share candy and chat.

A common theme emerging from many of the condolences was the need to address mental health issues in the workplace. In a LinkedIn post, aformer Procter & Gamble executiveremembered a generous and loyal friend who was "a hero to all our children, a godfather to many." But he also noted that even "top" executives like Arnal have their limits.

"We are all expected to cope with... stress, tension, depression, mental burden. That's why they pay us the big bucks, right?" wrote Adil Mehboob-Khan, CEO of luxury retailer Liberty. "Gustavo, despite being tough, extraordinary, and talented, was not invincible."

Heightened vigilance

According to Erik Thompson, a psychologist and founder of Thompson Leadership Development, an executive coaching firm in Burlington, Vermont, suicide naturally sends "incredible shockwaves of guilt" through the entire community of the deceased's friends, family, and colleagues. Members of the broader CFO business community may also be on high alert. Thompson said there is "a tendency of anxious vigilance, wondering if it will happen again."

There are signs this has raised awareness in the broader C-suite and boardrooms. Keith Meyer, global leader of the CEO and board practice at executive search firm Allegis Partners in Hanover, Maryland, believes Arnal's death recently prompted board members at one company to take an unusual step.

A member of that company's audit committee told Meyer that after the CFO appeared "agitated" during a meeting, the board became concerned. They then asked the CEO to check on the finance chief, Meyer said. He declined to name the company. "The antennas are up," Meyer said in an interview. "Now, the next question is, how are we going to address this?"

Scorekeeper

The CFO is essentially the company's official scorekeeper, responsible for delivering financial reports, managing the company's current capital structure, and providing a financial roadmap or model to chart the future direction. Executive search experts say that when a company's reported numbers flash red, the pressure on the CFO rises.

"In an economic downturn, it's really, really a tough job," said Josh Crist, co-managing partner at Crist Kolder Associates, an executive search firm in Downers Grove, Illinois. "Sometimes things don't go well, but everyone looks to the CFO for guidance on the company's health... It's extremely stressful."

Since early 2022, the list of headwinds facing CFOs has been growing. A potent combination of ongoing pandemic challenges, supply chain issues, the war in Ukraine, inflation, currency fluctuations, staffing shortages, and higher interest rates has eroded profits and continued to mount.

CFO exodus

These pressures have at least partly contributed to a rise in CFO turnover, according to search expert Crist. According to areport by Russell Reynolds Associates, the CFO turnover rate among S&P 500 companies rose to 18% last year, up from 14% in 2019 and 15% the year before. In the most recent wave,Nordstrom、Baker HughesandBeyond Meathave all announced CFO departures.

Crist believes such departures have not yet peaked. Through private conversations with some of those involved, he knows that mental health issues are behind many of the resignations. While CFOs may publicly state they are leaving to spend more time with family or pursue other interests, Crist says many are privately struggling.

"When you go through these very difficult times, you get battle scars, and they don't easily go away," he said. "These people have been doing this for two, two and a half years, leading companies through a pretty dark period, and they say 'I've had enough, I've had enough, because I can't take it mentally anymore.'"

Emotional intelligence

In recent decades, the need for mental health care has become less stigmatized and more openly acknowledged in American culture. High-profile celebrities speaking publicly about it has also helped. Singer and performer Lady Gaga has spoken about herstruggle with post-traumatic stress disorder, and comedian Pete Davidson has also spoken openly abouthis depression。

In professional golf, a clinical psychiatrist works with pro players to help them manage stress and other issues on tour,Golf Digest reported last year, suggesting professional golf is heading toward a "mental health reckoning."

But experts say mental health care for CFOs and other senior executives in corporate America remains at least partly in the shadows. Meyer says that for top leaders, it's unclear how or when boards, HR, or other senior executives should intervene to help someone in distress. He says concerns about rules related to the Health Insurance Portability and Accountability Act (HIPAA) could hinder assistance.

CFOs may also have personality types that isolate them. "The CFOs I meet have tremendous integrity and extremely complex thinking skills," said psychologist Thompson. At the same time, while not always the case, these professionals may tend toward introversion and sometimes social anxiety, he said.

Although generalizations are dangerous, he said some professionals gifted with numbers may be underdeveloped in what's called emotional intelligence or emotional quotient (EQ). EQ generally refers to a person's ability to handle emotions effectively, and those with higher EQ tend to have more satisfying work and career relationships, according to clinical psychologist Seth J. Gillihan in a2020 WebMD article. Fortunately, for those not naturally endowed with EQ, it can be learned, Thompson said.

New framework

Public support for improving workplace stress management appears to be growing. On Thursday, U.S. Surgeon General Dr. Vivek Murthy released a newworkplace mental health and well-being frameworkoutlining multiple ways companies can help create a healthy work culture. It recommends organizations ensure adequate rest, offer flexible schedules, respect boundaries between work and non-work time, and normalize and support mental health by modeling and regularly promoting services.

In his executive coaching and corporate stress management work, Thompson teaches leaders to use Transcendental Meditation practices, provides self-awareness training, and encourages work teams to learn to trust each other more.

He also shares some seemingly simple strategies CFOs can use when faced with delivering disappointing quarterly results or other daunting tasks. He advises practicing empathy with colleagues, as well as gratitude toward children, friends, and mentors. It's important to remember to cherish life—even during financial downturns, he said. "We always succeed and fail together," he wrote in an email. "Go home and hug your family."

Editor's note: If you are having thoughts of self-harm, call or text theSuicide & Crisis Lifelineat 988 for free, confidential support from trained counselors.