Investors' attention in 2024 is already swinging to the upcoming U.S. election — and the 81-year-old Joe Biden and 77-year-old Donald Trump. But the debate of older leadership is already something the markets and S&P 500 deal with.
CEOs of 11 S&P 1500 companies, including Berkshire Hathaway's Warren Buffett (93), Tootsie Roll's Ellen Gordon (91) and Penske Automotive's Roger Penske (86), are all older than both Biden and Trump. That's an indication age is just a number in a job where 58-year-old is the average age for CEOs.
But with that said, the group with older CEOs on average is lagging the S&P 500. Their shares are up an average of just 51.8% in the past five years, considerably trailing the S&P 500's 82% gain in that time. Shorter term these stocks overseen by older CEOs are disappointing, too. They're up an average of just 4.3% in that time, falling behind the S&P 500's 19% gain.
Warren Buffett: The Oldest CEO
Warren Buffett, the 93-year-old CEO of Berkshire Hathaway, continues to defy all norms. Not only is he the oldest CEO in the S&P 500, he's also one of the best.
Shares of his Berkshire Hathaway are up nearly 85% in the past five years. That makes it one of the top-performing companies with an older CEO. And it also tops the S&P 500's 82% rise in that time. Only four of the 11 companies with older CEOs, including Berkshire Hathaway, outperformed the S&P 500.
And some of the poorer performers have been hard on investors. Take Tootsie Roll, the candy maker led by the 91-year-old Ellen Gordon. Shares of the company only rose 21.7% in the past five years, trailing the S&P 500 by roughly 75%. And in the past year, shares are down 21%. Of course, Gordon's age isn't the reason for a lagging share price. The company is still rebuilding from a nearly 11% revenue drop in 2020. Tootsie Roll's revenue in the past 12 months, though, is already nearly 11% higher than it was in 2022.
Age And Wisdom In C-Suite
And don't let the performances of most companies with CEOs aged 78 or older distort the picture. Some are very strong performers, too.
Shares of Penske Automotive, led by 86-year-old Roger Penske, is in the pole position. Shares of the transportation company are up nearly 227% in five years and 26.3% in the past year, each roundly topping the S&P 500. The company's revenue is seen hitting $29.5 billion in 2023, up more than 6% from 2022.
So while older CEOs can get the job done, it's rare. Less than 1% of the S&P 1500 CEOs are 78 or older. Time will tell what happens in the White House.
Oldest CEOs
In the S&P 1500 (which includes the S&P 500)
| CEO | Company | Ticker | Age | Stock 5-year % ch. | One-year % ch. |
|---|---|---|---|---|---|
| Buffett, Warren E. | Berkshire Hathaway | 93 | 84.9% | 13.7% | |
| Gordon, Ellen R. | Tootsie Roll Industries | 91 | 21.7% | -20.9% | |
| Saul, Bernard Francis | Saul Centers | 90 | -23.7% | -6.1% | |
| Caporella, Nick A. | National Beverage | 87 | 18.4% | 6.3% | |
| Penske, Roger S. | Penske Automotive | 86 | 226.7% | 26.3% | |
| Rady, Ernest Sylvan | American Assets Trust | 86 | -44.2% | -17.5% | |
| Miller, Alan B. | Universal Health Realty Income Trust | 85 | -36.9% | -19.3% | |
| Cole, Lecil E. | Calavo Growers | 83 | -65.0% | -11.0% | |
| Greenberg, Robert Y. | Skechers U.S.A. | 83 | 146.7% | 34.3% | |
| Nahmad, Albert H. | Watsco | 82 | 184.5% | 45.1% | |
| Yu, Li | Preferred Bank | 82 | 56.9% | -3.6% | |
| Average | 51.8% | 4.3% | |||
| S&P 500 | 82.0% | 19.2% |
