Fifty-seven minus fourteen = Britain’s Top Bosses

The Motley Fool reveals the winning formula for a FTSE 100 Chief Executive

New research by popular financial website The Motley Fool – 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 ⁽¹⁾

• The perfect age for someone to join as a CEO is 43 ⁽²⁾

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.”

-ENDS-

For further information and/or to arrange an interview with David Kuo on economic affairs and breaking financial news stories, please contact:

Lucy Morrison on 020 7025 8577 or Lucym@fool.co.uk

Notes to Editors:

1) Graph showing Performance and years of service as CEO

2) Graph showing Performance and age of CEO

3) Mark Bristow is a prime example of a veteran CEO. He has been in his role for 15 years, and when he joined in Randgold Resources in 1996 at the age of 36 the share price was 415p. After he had been there for four years the share price was 59.29p and today it is share price is 4940p, a whooping rise of 1090 per cent from when he first took the role.

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