This graphic below from Conference Board, Foster shows that it is becoming more and more difficult for the corporate giants of America to remain at the top nowadays compared to 40 years ago. Times have changed and it is likely that this trend will continue over the next 10 – 20 years at a faster rate, whereby the makeup of Key Stock Indices such as the S&P500 would look very different in terms of its members.

Disruption is the new buzz word for the larger to medium companies, with technology and innovation being the key drivers. It is how they deal with this that will determine their overall long term success or failure. Unless their business models have flexibility and dynamism, it will be tougher for such companies (and their CEOs) to remain at the top of their game!

Lifespan of an S&P500 Company and their CEOs (1971 - 2010)

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