In 1965, the average tenure of companies on the S&P 500 was 33 years. By 1990, it was 20 years. It’s forecast to shrink to 14 years by 2026.
‘Fortune 500 turnover is a proxy for agility at organizations. If you were to look closer at what is happening:
- The industry composition within the S&P index is varying dramatically, with new niche sectors coming in
- Geo-political forces are playing an important role in determining fortunes of sectors, and not just organizations