CEOs' Longevity May Impair Innovation
May 22, 2026 at 00:40
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✦ AI Summary
- Long-serving CEOs can stifle innovation without strong board oversight
- A study analyzed 215 FTSE 350 companies over 11 years
- Independent directors play a crucial role in fostering R&D growth
A study conducted by the University of East London reveals that the longevity of chief executives may hinder innovation within companies unless they are supported by robust independent boards. The research, which focused on 215 FTSE 350 companies over an 11-year span from 2010 to 2021, examined the relationship between CEO tenure and the influence of independent directors on a company's "R&D knowledge stock." This term refers to the accumulated research, expertise, and technological capabilities garnered through innovation investments.
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