Please rotate your device to landscape mode to view the charts.

British CEOs in the twentieth century: aristocratic amateurs to fat cats?

Journal: Business History Review

Date: 2024

Author: Robin J. C. Adams, Michael Aldous, Philip T. Fliers, John Turner

Abstract:
This article uses a prosopographical methodology and new dataset of 1,558 CEOs from Britain’s largest public companies between 1900 and 2009 to analyse how the role, social background, and career pathways of corporate leaders changed. We have four main findings: First, the designation of CEO only prevailed in the 1990s. Second, the proportion of socially elite CEOs was highest before 1940, but they were not dominant. Third, most CEOs did not have a degree before the 1980s, or professional qualification until the 1990s. Fourth, liberal market reforms in the 1980s were associated with an increase in the likelihood of CEO dismissal by a factor of three.

Link: Google Scholar

Background and Context

Research Scope

Analysis of 1,558 CEOs from Britain's largest public companies between 1900-2009 using a comprehensive new dataset to understand how corporate leadership evolved.

Methodology

Uses prosopographical approach examining biographical data of corporate leaders across 407 companies to identify common characteristics and career pathways.

Historical Context

First study to cover the entire 20th century corporate leadership in Britain, addressing gaps in understanding how CEO roles and backgrounds transformed over time.

Evolution of Corporate Leadership Titles in British Companies (1900-2009)

  • Shows the dramatic shift from Chairman dominance to CEO prominence over the century
  • CEO title did not become widespread until the 1990s
  • Demonstrates the transformation of corporate leadership structures in British business

Decline in Family Member and Founder CEOs (1900-2009)

  • Tracks the decreasing prevalence of family members and founders in top leadership positions
  • Shows professionalization of corporate leadership away from family control
  • Reflects broader changes in corporate ownership and governance

Rise in Forced CEO Exits (1900-2009)

  • Demonstrates increasing accountability of CEOs to shareholders
  • Shows dramatic increase in forced exits after 1980s market reforms
  • Reflects strengthening of corporate governance mechanisms

Changes in CEO Education Levels (1900-2009)

  • Tracks the increasing importance of formal education for corporate leaders
  • Shows shift from experience-based to qualification-based leadership
  • Demonstrates professionalization of management

Growth in Professional Qualifications Among CEOs (1900-2009)

  • Shows increasing prevalence of professional qualifications in accounting and engineering
  • Demonstrates shift toward technical expertise in leadership
  • Reflects growing complexity of corporate management

Contribution and Implications

  • Challenges traditional views about aristocratic dominance in British corporate leadership
  • Documents the transformation of British corporate governance through market reforms
  • Provides evidence of slow but significant professionalization of British corporate leadership

Data Sources

  • Leadership titles chart based on Figure 1 from the article
  • Family member data visualization based on Figure 2
  • CEO exits visualization based on Figure 3
  • Education levels chart based on Figure 6
  • Professional qualifications chart based on Figure 7