Yves here. I must admit that I was unaware of the significant increase in the average age of CEOs across various countries, regardless of company size. This article effectively highlights this trend but could explore potential reasons more thoroughly. Readers might offer insights that extend beyond our collective understanding. One possibility is that increased acceptance of older leaders in elite circles—especially with advancements in health and cosmetic procedures—plays a role. Another explanation could be the global shift toward more conservative governance, making the stability of seasoned leaders more appealing and reducing turnover at the executive level.
By Valentin Kecht, PhD Student, Universität Bonn; Alessandro Lizzeri, Professor of Economics, Princeton University; and Farzad Saidi, Professor, Universität Bonn. Originally published at VoxEU
Recent trends show a significant shift in the composition of Western workforces, leaning toward the hiring of older individuals, particularly at higher echelons of business organizations. This column presents new data indicating that the average age of newly appointed CEOs has markedly increased over the past few decades. This trend is primarily observed outside large, publicly listed companies and is influenced by longer, more varied career paths before reaching the CEO position. While shifts in demographics, education, and tenure are often considered, they do not sufficiently account for these changes. Instead, the increasing complexity and uncertainty in the economy demand generalist skills, encouraging firms to prioritize experience over innate talent and leading potential CEOs to diversify their skill sets in preparation.
As Western populations age rapidly, workforce demographics are changing, raising concerns about potential declines in long-term growth and productivity (Aksoy et al. 2019, Maestas et al. 2023). In recent decades, both the U.S. and Europe have seen diminishing business dynamism, manifesting in fewer new companies and slowed productivity growth (e.g., Decker et al. 2016, Akcigit and Ates 2019, Biondi et al. 2024). Despite extensive analyses of these trends, little is understood about their interconnections on a micro-level.1
A recent study (Kecht et al. 2026) investigates the executive labor market and finds a notable trend in newly compiled data across various firms. Since 2000, the average age of CEOs has significantly surged in the U.S. and Europe, escalating far quicker than demographic shifts alone would suggest. The findings imply that firms are increasingly valuing diverse managerial experiences as the business environment becomes more uncertain and intricate. Rather than a mere reflection of an aging population, this rise in CEO age may represent a proactive adaptation to changing market dynamics.
The growing presence of older executives at the highest levels can impact a company’s performance, as older CEOs often have unique management styles (Bertrand and Schoar 2003, Schoar and Zhu 2016, Dessein and Prat 2019) and preferences (Jenter and Lewellen 2015). Research indicates that CEO age tends to correlate negatively with business dynamism and risk-taking. Our findings contribute not only to understanding firm responses to economic changes but also illustrate how these decisions influence broader aggregate patterns.
Data and Descriptive Evidence
Data comprising over 50,000 CEOs from BoardEx reveal a steady increase in CEO age beginning in 2000. In the U.S., the average CEO age surged by more than a decade, reaching 61 years by 2023 (Figure 1).2 The age at which CEOs are appointed also climbed noticeably, moving from below 48 to 55 years, indicating that the ageing trend is not simply attributable to extended tenures, delayed retirements, or CEO entrenchment. Furthermore, small companies emerge as the key contributors to this overall ageing phenomenon. Although CEOs of larger publicly traded firms are typically older than their counterparts in smaller private enterprises, the latter has increasingly caught up with the former over the observed period (Table 1, Panel A).
Figure 1 Average CEO age over time
Notes: The plot illustrates the average age of CEOs over time, distinguishing between current CEOs and those at appointment. The sample comprises 50,510 CEOs in the United States, sourced from BoardEx.
Source: Kecht et al. (2026)
Table 1 CEO characteristics at appointment for selected years
Notes: The quartiles in Panel A classify firms by employment size, constructed separately by year; the largest quartile represents the top 25% of the employment distribution. Panel B outlines average work experience before an individual’s first CEO appointment, distinguishing between external and internal experience. The number of distinct NAICS-4 industries is counted by four-digit classifications. Panel C indicates the percentage of CEOs who transitioned to a lower seniority level (based on job titles) prior to their inaugural CEO role.
Source: Adapted from Kecht et al. (2026)
The demographic shifts alluded to are accompanied by substantial changes in how CEOs navigate their careers. Primarily, the increase in age is largely attributed to greater external experience gained outside the appointing firm. Conversely, internal experience has remained relatively stable over recent decades. Additionally, modern executives have typically occupied a broader array of roles, firms, and sectors before attaining their CEO positions compared to their predecessors (Table 1, Panel B). The duration spent in each role has also declined since 2000. Notably, even internally promoted CEOs are now entering their firms at older ages and higher seniority levels. While the trend of older executives is observed at lower management levels too, it is particularly salient among CEOs, suggesting broader external experience has increasingly informed CEO selection criteria.
Alternative Explanations
Given the extensive transformations in the economic landscape during this period, various alternative explanations are worth examining for the observed increase in CEO age. Demographic factors can only account for a minor segment of this trend, as the rise in CEO age has outpaced overall labor force aging by over threefold. Similar age patterns are also evident across diverse European countries, irrespective of their specific demographic changes. Additionally, variations in industry concentration are not correlated with CEO age, nor do other firm characteristics—such as size and public/private status—adequately clarify this trend. Likewise, factors like internal hiring rates, gender, and educational background of CEOs yield no substantial explanation. Furthermore, our analysis demonstrates that the outcomes are not merely a rebound from the dot-com crash.
Demand for Generalists Amid Growing Uncertainty and Complexity
To further understand these trends, we propose a matching model that illustrates the relationship between executives and firms. Executives vary in both age-adjusted capabilities (which peak during mid-career) and experience (which increases with age), while firms differ in size and rank positions. Our primary finding indicates that as the value of experience grows, CEO positions increasingly shift toward older executives, particularly in smaller companies. We also establish that, under moderate assumptions, CEOs in smaller firms are generally younger, aligning with the data patterns observed.
To investigate this central hypothesis empirically, we examine two primary drivers of the rising need for generalist CEOs: economic uncertainty and business complexity. These factors compel firms to pursue leaders with broad skill sets that hinge more on accumulated experience rather than innate ability. Consequently, to acquire such diverse capabilities, executives are necessitated to follow longer career paths, leading to the appointment of older CEOs.
We address potential endogeneity concerns by leveraging geographical differences in companies’ access to top-tier strategic consultants (notably, McKinsey, BCG, and Bain (MBB)). The fundamental concept here is that in uncertain and complex environments, firms tend to favor leaders capable of drawing from a wide pool of industry and functional experiences. Elite consultants rapidly acquire these generalist abilities and present an alternative to older, seasoned executives. Hence, the impact of growing uncertainty and complexity on CEO age should be more pronounced in regions where access to consultants is limited.
We measure proximity to consultants using flight time to the nearest MBB office, utilizing variations stemming from office inaugurations and expansions of air routes. Our findings indicate that companies in high-uncertainty sectors appoint markedly older CEOs when younger generalists, represented by MBB consultants, are less accessible, with these effects being more significant in smaller firms where accumulating broad expertise internally is more challenging. Consistent results arise when substituting uncertainty with business complexity metrics, such as a firm’s diversification across sectors and geographic regions, as well as exposure to trade-induced economic variations.
Supply-Side Responses to Evolving Skill Demands
Next, we shift our focus to the potential supply-side reactions within the managerial labor market. One interpretation of the escalating transitions among potential CEOs across roles, firms, and industries is a strategic adaptation to the growing demand for broad managerial expertise. To validate this, we investigate whether executives are more inclined to accept lower-level roles and reduced compensation in the short term to enhance their generalist skill repertoire, ultimately boosting their long-term career prospects.
Using data from LinkedIn profiles across a vast pool of half a billion users, we find that recently appointed CEOs are increasingly likely to have transitioned to less senior positions before attaining their current roles. In the early 2000s, fewer than 20% of CEOs experienced such downward transitions; by the end of our sample period, this figure had risen to over 40% (Table 1, Panel C).
To assert causality, we examine whether executives become aware of career-enhancing opportunities through professional networks, monitoring changes in employees’ career trajectories following the CEO appointments of former peers. By applying a difference-in-differences design that focuses on within-firm variations across metropolitan areas, we document a rise in job mobility triggered by such information. Treated individuals are typically more likely to make lateral moves across companies or migrate across sectors, often resulting in short-term wage reductions. These effects are particularly pronounced among colleagues with shared tenure, those who display greater mobility en route to the top, and those employed in smaller firms. Collectively, this evidence suggests that both demand and supply for generalist skills have contributed to the rise in CEO age.
Conclusion
The findings present a comprehensive view of age trends within the executive labor market since the early 2000s. CEO age has risen substantially, surpassing demographic influences, and coincides with a broadening of executive career trajectories across different firms, positions, and sectors. While older CEOs often lead firms that experience slower growth and lesser innovation, they also tend to mitigate risks for their companies. Therefore, despite concerns regarding long-term economic dynamism, this trend may reflect a rational adjustment to business climates characterized by increased uncertainty and complexity. Understanding the mechanisms driving this evolution is vital for insights into changing corporate governance and the firm-level origins of broader economic fluctuations.
Looking ahead, the growing emphasis on generalist skills could correlate with the demand for abilities that facilitate coordination, adaptation, and decision-making amid uncertainty. As technology, including AI, increasingly replaces routine tasks, the value of these skills may significantly increase, even as it disrupts traditional pathways for expertise acquisition (Garicano and Rayo 2025, Garicano et al. 2026). The heightened significance of generalist human capital thus not only demonstrates resilience to automation but also suggests a likelihood of persistent trends in the patterns observed here.
_____
- One exception is d’Astous et al. (2025), who examine the impact of an ageing workforce on corporate investments.
- In a similar vein, the average CEO age in a sample of 19 European economies has increased from 48 to 57 years.
See original post for references.
