CEO Age Rises Sharply as Firms Seek Generalist Experience

Research conducted by Valentin Kecht, Alessandro Lizzeri, and Farzad Saidi reveals that the average age of newly appointed CEOs in the US increased from below 48 in 2000 to 55 in 2023, a trend mirrored in Europe. Analyzing data from more than 50,000 CEOs via BoardEx, the study indicates that this rise is particularly evident in small, private companies and is influenced by longer and more varied career trajectories prior to their appointments. Factors such as demographic changes, tenure, and education do not account for this trend. Instead, heightened economic uncertainty and complexity have led firms to seek generalist skills, valuing extensive experience. Additionally, the proportion of CEOs undergoing downward career transitions has surged from under 20% in the early 2000s to over 40% by the study's conclusion, suggesting that older CEOs may mitigate firm risk and innovation, reflecting a logical adaptation to changing market dynamics.