Companies are running out of experienced CEOs
A recent paper from the National Bureau of Economic Research (NBER) analyzing more than 50,000 CEO careers found that the average appointment age has climbed from 48 in the year 2000 to 55 today. The researchers suggest that increased economic uncertainty and the growing geographic and regulatory complexity of the role are pushing firms to prioritize “generalist human capital” (i.e., experience)…
A recent study by the National Bureau of Economic Research reveals that the average age of CEOs has risen from 48 in 2000 to 55 today. This trend is driven by a need for experience over raw talent, as firms grapple with economic uncertainty and complicated regulations. Young executives make up 86% of public CEO appointments since 2018, with the average tenure shrinking from 8.3 years in 2021 to 7.1 years in 2025.
This creates a gap in seasoned leaders who can navigate disruptive periods, such as those brought on by artificial intelligence. Boards are turning to experienced executives like COOs, CFOs, and CHROs but may be missing out on the benefits of a diverse set of experiences. Building diverse "generalist human capital" through varied career paths is crucial, and this should start early in a person's career.
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