In fact, in today's fractured, fast-moving world, empathy may be the most essential executive competency of all. Empathetic leaders inspire trust, improve team performance and drive innovation. In fact, a study by Catalyst found that employees with empathetic leaders are more likely to report being innovative, engaged and willing to work longer hours. Boards that prioritize empathetic leadership make better governance decisions, attract more diverse and capable members, and build stronger trust with stakeholders. Executive empathy isn't a "nice-to-have."