The corner office has long been a coveted place, but now the CEO who occupies it is getting older. A National Bureau of Economic Research paper discussed by the Harvard Law School Forum on Corporate Governance finds that “CEO age has increased more than three times as fast as the age in the labor force as a whole.”
It’s a rising trend with a tradeoff: “while older CEOs tend to run firms that are slower-growing and less innovative, their more risk-averse management style can also help navigate difficult market environments.”
- Between 2000 and 2023, the average U.S. CEO’s age rose from 48 to 61 at appointment.
- Among large public companies, the average CEO age continues to climb.
- A diverse set of management experiences and “generalist skills” in volatile economic environments are what boards value most, according to research from 50,000 board members and executives.
For instance, a CEO might have more cross-functional exposure and a global network but still lose the appointment to a candidate who has run a company during periods of transformational change and economic hardship.
Analysts also note a clear pattern: once a candidate is appointed as CEO, former colleagues quickly job hop in an effort to diversify skills.
