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Founder-led firms are outpacing CEO-led ones

Founder-led firms are outpacing CEO-led ones in market recovery, per Reuters analysis. 

This year, the top 400 founder-led stocks from all sectors have registered an average share price gain of 58.4% versus a 10% return for the top 400 stocks led by others.

According to Refinitiv data, founder-led firms are expected to post average net income growth of 22.8% in the next three years, compared with 7.1% growth for non-founder led companies.

Why do we care?

I’m hugely biased to entrepreneurs and smaller customers.   Worth stating the bias.

I noted this data to watch for the higher performance in founder-led firms and will note this is a lens I’ve used to watch leadership teams.    This isn’t a statement of unwavering blind support of founder led teams – it’s simply a smart lens for analyzing companies for their potential performance.      It’s also only ONE lens.

Source: Reuters