Lessons from the depths: What OceanGate teaches us about toxic leadership

Summary

The US Coast Guard Marine Board of Investigation (MBI) report links toxic leadership at OceanGate to the 2023 Titan submersible implosion, identifying patterns such as prioritising profit over safety, silencing dissent and allowing fatal risks to go unchallenged. Fran Pestana explains how toxic leadership and gaslighting operate in everyday workplaces, the neurological and commercial costs they create, and practical steps employers and employees can take to break the cycle.

The article uses clear examples (the “iron fist” and “poison ivy”) to show how manipulative behaviours manifest, outlines how chronic stress undermines brain function and performance, and sets out employer- and employee-focused remedies including 360-degree feedback, leadership audits and improved whistleblower protections.

Key Points

The MBI report found destructive leadership at OceanGate was a contributing factor in a preventable tragedy.
Toxic leadership is characterised by control, fear, inconsistent feedback and emotional manipulation; gaslighting makes people doubt their perceptions and stops dissent.
Practical examples: the “iron fist” (unpredictable praise/criticism, exclusion) and “poison ivy” (subtle sabotage and reputation shaping).
Neurological impact: chronic stress raises cortisol, impairs the prefrontal cortex and damages decision-making, creativity and emotional regulation.
Organisational costs are substantial (the piece cites around $12,000 per employee annually) via reduced engagement, higher turnover, legal risk and lost innovation.
Employer strategies: introduce 360-degree feedback, enforce zero-tolerance policies, run leadership audits and offer third-party reviews and wellbeing support.
Employee strategies: trust your instincts, document interactions, and seek HR, mentor or counselling support when needed.

Why should I read this?

Because it’s a blunt wake-up call. If you manage people, sit on a board or work in HR, this article shows how bad behaviour doesn’t just hurt morale — it can cost lives and the business. We’ve read it so you don’t have to; it pulls the lessons out clearly and gives practical fixes you can use straight away.

Author style

Punchy: the author cuts through the headlines to show the real human and commercial toll of toxic leadership. For leaders and HR professionals this isn’t optional reading — it’s essential if you want to reduce risk and protect people and the organisation.

Context and Relevance

The OceanGate case is an extreme illustration, but the behaviours described are widespread across sectors. As regulators, investors and employees place growing emphasis on psychological safety and governance, recognising and addressing toxic leadership is becoming a strategic priority for any organisation that wants to retain talent and avoid reputational, legal and financial harm.

This article ties neuroscience, real-world examples and pragmatic HR interventions together — useful for anyone designing leadership development, culture change or risk-management programmes.