Core Summary

  • Research published by the National Bureau of Economic Research (NBER) shows that over the past two decades, the age at CEO appointment has risen significantly, as companies face increasingly complex and volatile economic environments and place greater value on diverse experience.
  • From 2000 to 2023, the average age of U.S. CEOs increased by 10 years, five times the average age increase of the college-educated workforce. Researchers note that today's CEOs, at the time of appointment, have worked at more companies and across more industries than their 2000 counterparts.
  • Researchers stated: "The demand for generalist skills, driven by greater industry-level uncertainty and complexity, has causally led to the appointment of older CEOs." They added: "The shift toward generalist human capital reflects a growing need for skills in coordination, adaptation, and decision-making under uncertainty."

In-Depth Analysis

For most older U.S. workers, age discrimination remains prevalent in the American workplace, according to AARP.

AARP reported in January that nearly two-thirds (64%) of workers aged 50 and older said they have seen or experienced age discrimination at work, with 22% believing that employers are trying to push them out of their jobs due to age.

AARP says older workers feel they face subtle age discrimination, including being perceived as resistant to change and less tech-savvy than younger colleagues.

According to AARP, many older workers see younger colleagues receiving more opportunities in training or feel their achievements are not recognized.

However, NBER research shows that at the top leadership levels of U.S. companies, age is less of a barrier to advancement.

Citing data from LinkedIn and BoardEx, researchers note that the average age at CEO appointment jumped from about 47 in 2000 to 55 in 2023.

Researchers say several changes have driven companies to favor executives with longer careers and more diverse experience, including increasingly uncertain economic outlooks.

"Second, the CEO role has become more complex, as evidenced by firms expanding across geographies and business lines simultaneously while navigating growing regulatory constraints," they said.

"These forces may lead firms to seek leaders with generalist skills, which are more related to accumulated experience than to innate ability," researchers said. "Since executives need longer career paths to accumulate such diverse capabilities, firms consequently appoint older CEOs."

Researchers note that smaller firms seeking CEOs particularly favor executives with experience at other companies.

Compared to larger firms, "smaller firms offer fewer opportunities to accumulate generalist experience internally, so they rely more on external hiring," they said.