Have you ever wondered if age plays a role in a company’s success? A recent study suggests that companies with CEOs over the age of 70 actually outperform the S&P 500. Yes, you read that right – 70!
At first, it might seem counterintuitive. We often associate youth with energy, innovation, and disruption. But it turns out that experience, wisdom, and a seasoned perspective can be just as valuable.
The Data
A Reddit user, u/Fun-Pace-4636, created an index of companies with CEOs over 70 and compared their performance to the S&P 500. The results are striking. These companies have consistently outperformed the market, suggesting that older CEOs might bring a unique set of skills to the table.
What’s Behind This Trend?
There are a few possible explanations for this phenomenon. For one, older CEOs have likely been through multiple economic cycles, giving them a deeper understanding of how to navigate uncertainty. They may also be more cautious and less prone to impulsive decisions, which can lead to more sustainable growth.
Additionally, older CEOs often have a stronger network and more established relationships, which can lead to better partnerships and collaborations. And let’s not forget the wisdom that comes with age – they’ve seen it all before and can make more informed decisions.
The Takeaway
While this study doesn’t suggest that younger CEOs can’t be successful, it does highlight the value of experience and age in leadership. Perhaps it’s time to rethink our assumptions about age and CEOs. Maybe, just maybe, a 70-year-old CEO is exactly what a company needs to thrive.