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In a new discussion paper, a team of researchers from the Universities of Bonn and Princeton demonstrates that executives in the US are now reaching top positions later than they did two decades ago. This trend towards higher CEO age at appointment is particularly pronounced outside the largest listed firms. The researchers attribute this development to the fact that firms increasingly demand broad knowledge and diverse skills from their CEOs.
Reaching the top position in a firm takes considerably longer today than it used to. This is shown by a recent study conducted by economists Valentin Kecht and Prof. Dr. Farzad Saidi from the Department of Economics at the University of Bonn, who are also members of the Cluster of Excellence ECONtribute of the Universities of Bonn and Cologne, together with Alessandro Lizzeri from Princeton University.
The researchers found that the average CEO age in the United States rose by about ten years between 2000 and 2023. The average age at appointment increased noticeably from less than 48 to 55 years. A similar trend can be observed in a sample of 19 European countries, including Germany.
In order to investigate the causes, the research team analysed data on more than 50,000 CEOs, including data from BoardEx, a database on executives and their employment histories, as well as from LinkedIn, and combined it with firm-level information from the Compustat database. They also developed an economic matching model that shows how CEOs are assigned to firms and why certain candidates are selected.
The results show that this later rise is primarily due to the fact that career paths leading to a CEO appointment have become longer and more diverse. Other factors, such as demographics or education, play only a minor role. Instead, the findings point to changes in hiring patterns, with companies placing greater emphasis on accumulated experience and so-called generalists. Today, a broader skill set across various areas is valued.
‘The role of CEOs has become more complex, as have the demands placed on their experience,’ says Professor Farzad Saidi, co-author of the study.
Candidates have responded strategically to this shift in demand. Today, they spend more time accumulating experience across positions, firms, and sectors, and are even willing to accept reduced pay in the short term to do so.
The extent of this shift depends on firm size. Large firms tend to fill top positions with internal candidates and can build up their own pool of generalists. Smaller firms, on the other hand, predominantly rely on external candidates with broad experience. These smaller firms are seeing a noticeable rise in the number of older executives at the top.
The researchers point out that this trend could have far-reaching consequences: on average, older CEOs lead firms with slower growth rates and less radical innovation. At the same time, the authors view this trend as a response to an increasingly uncertain and complex business environment.
‘In the long term, this reflects a shift toward generalist skills. That is, skills that enable coordination, adaptation, and decision-making under uncertainty,” says Saidi. “These are difficult to automate and are therefore becoming increasingly important.”
Funding: The study was conducted by researchers from the University of Bonn and Princeton University. It was funded by the German Research Foundation (DFG) as part of the Cluster of Excellence ECONtribute and the Transregio 224 Collaborative Research Centre – 'Economic Perspectives on Societal Challenges: Equality of Opportunity, Market Regulation, and Financial Stability”.
Prof. Farzad Saidi Ph.D.
Department of Economics
Cluster of Excellence ECONtribute
University of Bonn
Phone: +49 228 73-9288
E-mail: saidi@uni-bonn.de
Valentin Kecht
Department of Economics
Cluster of Excellence ECONtribute
University of Bonn
Phone: kecht@uni-bonn.de
Valentin Kecht, Alessandro Lizzeri, Farzad Saidi: Aging at the Very Top. ECONtribute Discussion Paper No. 404. April 2026. https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_404_2026.pdf
Valentin Kecht (left) and Prof. Farzad Saidi from the ECONtribute Cluster of Excellence at the Unive ...
Quelle: Gloria Schwan/Marc Thürbach
Copyright: Collage: ECONtribute (left: Gloria Schwan/right: Marc Thürbach)
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