Chief executives perform better after a decade or more at the helm, according to new research cited by The Wall Street Journal.
In fact, the most valuable period of CEO tenure is between years 11 and 15, after years of experience leading the firm through ups and downs. The research was conducted by executive search firm Spencer Stuart and is based on an analysis of 750 CEOs of S&P 500 companies, according to WSJ.
The findings challenge previous thinking — less than two years ago WSJ's pages featured research that determined the "optimal tenure" for CEOs to be just 4.8 years — but mirror trends in tenure at S&P 500 companies and the economy more broadly.
CEO tenure at S&P 500 companies has grown since the recession, reaching 10.2 years on average in 2018, up from 7.2 years in 2009, according to the report. The S&P 500 has 15 CEOs who have been at their posts for more than 25 years.
Read the full story here.
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