The million-dollar cost of burnout: Why executive health is a critical business investment

Executive burnout is often viewed as a personal issue, but ignoring it can turn it into one of the most expensive business risks. Replacing a C-level executive can cost a company between 200% and 400% of their annual salary, according to data from Gallup and NFP. Stanton Chase estimates that the market cost of replacing critical positions, such as a CFO, can reach approximately €3.44 million. Meanwhile, Cerevity reports that 71% of executives are balancing on the brink of burnout, meaning these theoretical risks can quickly translate into real financial losses.

Žaneta Fomova, founder of Tour de Med, CEO of JCDecaux Lithuania, and a psychotherapist, discusses why an executive's emotional and physical state can no longer be treated solely as a personal matter, but rather as a strategic priority for the entire organization.

A Burned-Out Leader Shifts the State of the Entire Organization

The well-being of a leader—whether heading an entire organization, a department, or a team—should never be considered a purely personal affair, as it directly impacts team motivation, trust, and employee loyalty. According to a study by MeQuilibrium, nearly a fifth of employees consider quitting their jobs simply because they do not feel supported by their manager.

"A burned-out leader signals fear, tension, and mistrust to the organization. A team quickly senses when their leader is living in a constant survival mode. This leads to rising emotional tension, dwindling trust, dropping productivity, and increased employee turnover," says Fomova.

Paradoxically, leaders themselves have become one of the most vulnerable links in any organization. They are 36% more likely to experience burnout than specialists, and their likelihood of leaving their job is 24% higher, the MeQuilibrium study reveals. Meanwhile, according to the Workforce Institute, 57% of executives would not have chosen their current job had they known the emotional toll of the position beforehand, and nearly half admit they are seriously considering stepping down within the coming year due to chronic stress.

A Tired Leader Makes Poorer Decisions

When a leader is overworked, it is not just the emotional atmosphere that transfers to the team, but also the risk of poor decision-making, which poses a threat to shareholder capital. According to Fomova, prolonged stress and sleep deprivation alter not only how a person feels, but also how they behave under pressure. "In our bodies, the sympathetic nervous system—also known as the 'fight-or-flight' mode—is responsible for this. In the short term, it helps us mobilize and react quickly during a crisis. However, when this state becomes permanent, the ability to see the broader context and potential consequences weakens."

The psychotherapist notes that over time, many executives become so accustomed to constant tension that it becomes their norm. The worst-case scenario occurs when the body loses its ability to switch to the parasympathetic state—the mode responsible for recovery, rest, and emotional balance.

"I very often hear leaders say: 'I don't sleep at night because I have too much work.' However, the problem often lies not in the workload itself, but in the inability to achieve quality recovery. Instead of dedicating free time to rest or an enjoyable hobby, they choose alcohol or partying to 'disconnect' the quick way. Over time, this exhausts a person even further: they become more irritable, get poorer rest, find it harder to maintain emotional stability, and are left with less and less inner space for creative solutions," Fomova states.

In the long run, the consequences of such a state can cost organizations millions. According to data from the American Journal of Preventive Medicine, due to decreased productivity, mistakes, absenteeism, and employee turnover, the cost of burnout to a company ranges from €3.4 thousand for a specialist position to €18 thousand at the executive level. It is estimated that for an organization with 1,000 employees, this can translate into approximately €4.3 million in losses per year.

Executive Rest Becomes an Investment in Business Results

Many leaders postpone their vacations, believing that everything in the company will collapse if they step away. Others simply lack the time and energy to plan the rest itself, causing vacations to be delayed indefinitely. According to the Workforce Institute, as many as 89% of executives do not use all of their vacation days, meaning they live in a state of constant stress for years.

"The problem is that a burned-out, unrested leader can do more harm than good to the organization. Therefore, today the strongest leaders are not those who work the longest hours, but those who are able to most effectively restore their energy, emotional balance, and clarity of thought," says Žaneta Fomova.

A study by MeQuilibrium shows that this approach directly pays off for the business: an emotionally stable and supportive leader can increase organizational productivity by as much as 25–35%, and employees who feel supported by their manager are 58% less likely to experience burnout. According to Deloitte, every euro invested in emotional health and leadership resilience to stress yields a return of about €4.7 for organizations through higher productivity and employee engagement.

How Can a Leader Restore Energy and Clarity of Thought?
 

"For a very long time, we lived in a culture where it was normal to put business first, and only care for family and health if there was time left over. Unfortunately, this model simply exhausts a person. Sustainable priorities should be flipped, making health No. 1, family No. 2, and business No. 3," says Fomova.

Working in both business and psychotherapy, she notices that many leaders today have lost touch with their own physical and mental state—fatigue becomes the norm, and rest is frequently pushed to "sometime later." However, the quality of decisions, emotional stability, and the long-term growth of the organization depend precisely on the ability to recover.

According to Fomova, restoring energy and emotional balance can begin with simple, daily steps:

• Maintain a clear schedule: Plan the week in advance, prioritizing and reserving time for rest and hobbies first.
• Choose physical activities based on circadian rhythms: Engage in active sports during the day (ideally around lunchtime) to boost tone and productivity, and choose activities that calm the nervous system in the evening (yoga, walking, time with family).
• Stick to a sleep routine: Go to bed by 10 PM—this is when the brain most effectively clears out toxins and restores cognitive functions.

However, according to her, a daily routine is no longer enough for some leaders—especially when fatigue has persisted for months. In such cases, what is needed is not another escape to the beach, but a targeted restoration of the body and nervous system.

"I felt the first signs of severe exhaustion myself after closing several highly intense financial years while working at JCDecaux. Over time, I noticed that I was no longer recovering even after vacations. It was from this personal and professional experience that Tour de Med was born - a personalized wellness curation platform that helps plan body-strengthening programs. Unlike conventional travel planning, we first assess the individual's state: lifestyle rhythm, sleep quality, and stress levels. Blood tests, electrocardiograms, or consultations with specialists are arranged as needed. We evaluate what kind of recovery the person needs most: some require a complete slowdown and sleep restoration, others focus on longevity cultivation, and some need to regain strength after long-term stress. Only then are targeted stress reduction, physical recovery, detoxification, or longevity programs selected at specialized European wellness centers, such as the SHA Wellness Clinic (Spain) or Villa Eden (Italy)."

Even a week-long targeted rest program significantly alters a person's efficiency, and the positive impact lasts for another 3 to 6 months, reveals a study by the International Journal of Environmental Research and Public Health:

• Stress and anxiety levels decrease;
• Sleep quality and physical resilience improve;
• Productivity and working memory increase.

Investing in this type of recovery ensures that the executive returns to the company not just after "spending time on a beach," but having fully restored their cognitive flexibility, strategic thinking, and energy—ready to make decisions that will generate millions in returns for the business.

Therefore, according to Fomova, executive rest should become more than just a personal decision; it should be part of the HR agenda. Organizations that care about their leaders' ability to recover are essentially caring about the quality of their decisions, team stability, and long-term business resilience. 

"The biggest mistake of modern business is demanding maximum results from a leader while ignoring human biological limits. Because a burned-out leader eventually ceases to be the engine of an organization and becomes its liability," says Fomova.