The winning formula for a FTSE 100 Chief Executive
New research by popular financial website Fool.co.uk reveals the vital statistics for the perfect FTSE 100 boss. Analysis of the ages, length of service and share price performances of FTSE 100 bosses shows:
Britain's best bosses peak at 57
Optimum results are achieved after 14 years
The perfect age for someone to join as a CEO is 43
Performance gains
During the first four years of a CEO's reign, the company's share price remains largely stagnant. It is only after four years at a company that bosses start to make their mark - with the average share price gain during this period being seven per cent.
Longevity is key
Like investing, the perfect CEO is a long-term investment - with the shares more likely to rise the longer the CEO stays in the role. The average share price gain for a company whose CEO has been in the position for four to ten years is 137 per cent. Notably, veteran CEOs, such as Mark Bristow (3) at Randgold Resources, who have held their posts for between ten to 15 years, have seen share price gains of over 400 per cent.
Ones to watch
Based on The Motley Fool's winning formula Simon Wolfson of Next, George Weston of Associated British Foods and newly appointed ITV boss Adam Crozier, could all be set for bumper gains at their companies in years to come.
Simon Wolfson, 42, Next
Since Wolfson joined Next in 2005. Its shares have increased 156 per cent, and at 42, Wolfson is at the "perfect age" to make significant progress.
George Weston, 45, Associated British Food
Weston is a more typical example of what to expect within a five-year time frame. Since he has been at the company, the share price has increased 18 per cent.
Adam Crozier, 45, ITV
Recently appointed boss of ITV, Adam Crozier, is at the right age to join a company. However, his task to turn around the company in five years is, perhaps, a little ambitious. But given enough time in the role, shareholders could be pleasantly surprised.
David Kuo, Director at The Motley Fool comments: "Finding a good CEO can be as difficult as digging for gold. As our analysis shows, CEOs needs time to grow into their role and showing them the door before they have even got their feet under the table could prove detrimental.
"Understandably, many boards demand instant gratification from their CEOs. But our study shows that age is great, experience in the job is very important, but a combination of the two is vital if bosses are to deliver the best returns for shareholders."