New York City stockbrokers pulling down the biggest paychecks were also those suffering higher levels of depression, burnout and other afflictions, in a study of 26 Wall Street account executives.
"In essence, these...brokers appear to be paying for financial success with their mental health and quality of life," report researchers Alden M. Cass, John Lewis and Ed Simco of the Center for Psychological Studies at Nova Southeastern University in Fort Lauderdale, FL.
Their paper, "Casualties of Wall Street: An Assessment of the Walking Wounded," will be presented at the American Psychological Association Convention held in Washington, DC August 4-8.
"The most astounding finding of our investigation is that despite the moderate to high levels of emotional distress reported by the participants, these individuals were still making on average more than $139,000 for their annual income," they write in the paper.
"Even more surprising was the fact that those brokers who reported greater impairment regarding depression, anxiety and emotional exhaustion, as well as poorer coping skills, proved to be the most successful individuals...based on their annual income."
The NSU psychologists examined 26 male stockbrokers between the ages of 22 and 32 from seven Wall Street brokerage houses. They were surveyed with instruments designed to test their levels of emotional exhaustion, depression, anxiety and depersonalization. They were also questioned about how they coped with the stress they are under.
Among the findings:
-- The brokers who got the least sleep were more likely to have the higher salaries.
-- Collectively, the brokers' scores placed them in the moderate to high range for emotional exhaustion and depersonalization.
-- The brokers were spending an average of 10 to 12 hours at work daily, smoking almost two packs of cigarettes daily and consuming almost two drinks per day.
-- They reported suffering from the flu or a virus an average of four times per year but only called in sick twice.
"Twenty-three percent of our sample met criteria for a clinical diagnosis of current major depression and 38 percent reached criteria for sub-clinical levels," says John Lewis, associate director of NSU's Center for Psychological Studies.
By contrast, he points out, the National Institute of Mental Health has reported that only seven percent of all men are currently diagnosed with major depression.
The authors urge the larger Wall Street brokerage houses to "implement some sort of stress management program at a training level, for the purpose of preventing these rather costly and negative personal outcomes from affecting their employees and eventually the growth of the organization."
Job uncertainty that leads to stress hits Wall Street stockbrokers comes from several directions, Lewis notes. They handle a great deal of responsibility and they have to work fast because they are paid on commission. Uncertainty is a significant threat in the form of the success of on-line trading, the volatility of today's stock market, the possibility of inflation or interest rate hikes, and international market competition.
For more information contact Dr. Lewis. He will be at the APA meeting. He will be available at the St. Regis Hotel in Washington, DC after noon on August 4. The number there is 202-638-2626. If you want to call his office in Florida, that number is 954-262-5729. His e-mail address is [email protected]. If you would like to see a copy of the paper to be presented at the APA convention please contact Dick Jones Communications at 814-867-1963.
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