NEWS: Privately Educated CEOs Seen as Safer Bets by Investors, Study Finds

As reported by the Guardian, chief executives who were privately educated are viewed by investors as lower-risk leaders, despite no evidence that they outperform or behave differently from their state-educated peers, according to new research

A study published in the journal European Financial Management and carried out by the University of Surrey, and highlighted in a 2025 report by the Sutton Trust, found a marked imbalance in the educational backgrounds of senior business leaders in the UK.

Among FTSE 100 chief executives educated domestically, only 34% attended state comprehensive schools, while 37% were privately educated. The figures are even more skewed among FTSE 100 chairpersons, compared with a national private school attendance rate of around 7%.

Researchers suggest investors may be associating elite educational backgrounds with competence when assessing companies during periods of uncertainty, even if such assumptions are not supported by performance data.

The study found that firms led by privately educated executives tend to show around 5% lower stock market volatility. However, it concluded that these leaders do not take fewer risks, achieve better financial results, or manage crises more effectively than others.

Instead, the reduced volatility appears to stem from investor perceptions, with markets more likely to view executives from elite schooling backgrounds as more stable or capable, regardless of actual performance differences.