While most US public company CEOs are 50 years or older, the share in their 30s and 40s is inching up. In 2023, 16% of Russell 3000 CEOs were 40–49 years old, compared to 13% in 2017.
Seasoned directors play a critical role: At large companies, corporate directors are, on average, five years older than CEOs (63 for directors vs. 58 for CEOs). In addition, directors often have more institutional knowledge and experience with the company: While the average tenure of directors is 9.5 years, it’s just 6.5 for CEOs.
The TCB take: Many directors have navigated challenges that younger CEOs may have limited (or no) experience addressing, such as managing through elevated inflation and severe geopolitical turmoil. Companies should view their directors’ age and experience as a strategic asset.
Companies also need robust board education and engagement programs, and to ensure directors are fluent in the latest relevant developments in areas such as AI and sustainability.