Rocket Lab’s CEO says being paranoid at work is his superpower — but it can come at a huge cost

Rocket Lab’s CEO Peter Beck.

Peter Beck doesn’t sleep soundly and thinks paranoia is a “superpower.”

The founder and CEO of the aerospace company Rocket Lab told CNBC in an interview that going home and sleeping soundly every night “just doesn’t seem a tangible possibility.”

He also described himself as a “chronic workaholic” and a “micromanager,” and said he was “paranoid about everything, especially failure.”

While some other leaders share Beck’s views, workplace pros think it might be a recipe for burnout and stress.

Heather Lamb, a workplace well-being expert and author of “How Not to Be a People Pleaser,” told B-17 that while constantly being on your toes may feel like a way to stay sharp, this mentality “breeds a toxic work environment.”

“Instead, constant stress and fear of falling short can inspire anxiety, self-doubt, and burnout that is damaging to productivity and well-being alike,” she said.

A recipe for success?

Beck became the “newest space billionaire” in November, according to Forbes, with his 10% stake in Rocket Lab worth $970 million, and having accrued $65 million from selling shares.

The company is currently valued at $11.2 billion, according to CNBC.

Still, he is lagging behind other space entrepreneurs, including Elon Musk (worth $354 billion) with SpaceX and Jeff Bezos (worth $240 billion) with Blue Origin.

Rocket Lab’s stock price surged to an all-time high at the end of November. While the company rivals Musk’s SpaceX, Beck previously told B-17 he has no intention of colonizing Mars.

Instead, Rocket Lab focuses on building and managing rockets and satellites.

“Rocket Lab will never have the capital that Jeff and Elon have,” Beck told Bloomberg News in an interview. “But all that means is you have to be a bit better at hustling, a little bit better at being innovative. You can’t break the laws of physics no matter how much capital you’ve got.”

Caution vs fear

Beck believes that his paranoia and micromanaging have helped his career.

In the short term, paranoia and a hyper-vigilant mindset can drive exceptional results, Edel Holliday-Quinn, a business psychologist who has worked in senior roles at Citi and PwC, told B-17, especially in high-stakes industries like aerospace.

Breese Annable, a licensed clinical psychologist and career coach who has worked with many high-achieving professionals, also told B-17 that some level of alertness can be valuable for leaders.

“Anticipating challenges and planning for contingencies are facets of strategic thinking,” she said. “However, when vigilance crosses into chronic hypervigilance, the psychological and relational costs outweigh the benefits.”

Lamb told B-17 that leaders who are always anxious about the next misstep may lose sight of their own well-being.

“The world thrives on fear — yeah, people take pride in their work, for sure,” she said. “Wanting to do good work is a fine goal. But if paranoia is at the heart of it, you are working to inhibit yourself rather than improve.”

There’s a difference between exercising caution and being immobilized with fear of failure, Lamb added.

“Realistic caution is the practice of thinking about the future, having contingency plans, and being mindful of all of the hurdles we face,” she said. “But it’s about managing those worries in a way that won’t overwhelm you.”

Negative impacts are individual and workplace-wide

Sleep deprivation significantly affects cognitive functioning, decision-making, and emotional regulation, Annable said, and if it is experienced long-term, it has been linked to higher risks of cardiovascular disease and weakened immune function.

Chronic stress can also have physiological effects by contributing to chronic illnesses like high blood pressure.

And it’s not just the individual who is affected.

Worrying too much about the future can have a lasting impact on the workforce as well.

Leaders who are on edge and driven by failure are likely to be micromanagers, Holliday-Quinn said, which can create a toxic workplace culture.

“Research consistently shows that employees under micromanagers experience lower job satisfaction, decreased engagement, and higher turnover rates,” Annable said. “This creates a ripple effect that can undermine long-term organizational success.”

Over time, this can lead to high turnover and low employee happiness.

“Employees may feel disempowered, undervalued, and overly scrutinized,” she said. “Which stifles creativity and collaboration.”

True effective leadership, Holliday-Quinn said, requires “resilience, self-awareness, and the ability to foster a culture of trust, collaboration, and empowerment.”

“These are the hallmarks of leaders who leave a lasting legacy,” she said. “Not just in terms of success but in terms of the positive impact they have on their organizations and the people within them.”

Beck didn’t respond to a request for comment from B-17.