Paragon Intel Study Finds Elite Credentials Are a Poor Predictor of CEO Success

STAMFORD, Conn., Aug. 21, 2025 /PRNewswire/ -- Paragon Intel, a leading provider of C-suite analytics for institutional investors, today released a comprehensive study that debunks the long-held assumption that prestigious credentials predict superior CEO performance. The data-driven analysis, powered by Paragon Intel's ManagementTrack platform, reveals a weak correlation between an executive's educational or consulting pedigree and their ability to generate alpha for shareholders.

The study measured the performance of public company CEOs relative to their competitors over a 10 year period, uncovered surprising results that challenge conventional wisdom in talent assessment. Key findings include:

• MIT Sloan Dominates MBA Programs: Graduates from MIT Sloan School of Management generated an average alpha of 67%, outperforming the second-ranked program by 43 percentage points.
  
  
• Quantity Doesn't Equal Quality: Harvard Business School produced the highest number of CEOs, yet their average performance was merely in-line with the market.
  
  
• The Ivy League Advantage Proved Minimal: Ivies showed only a 3 percentage point alpha difference versus state schools. Both categories demonstrate stronger performance at the undergraduate level compared to MBA programs.
  
  
• Consulting Firm Disparity: Among the "Big Three" consulting firms, former Bain & Company consultants delivered a positive 10% alpha as CEOs, while alumni from McKinsey & Company and Boston Consulting Group (BCG) meaningfully underperformed the market.

"Anecdotal evidence plagues c-suite ability assessment. Both boards and investors who rely on prestige as a proxy for management quality may see sub-par returns." says Colby Howard, President and co-founder of Paragon Intel. "Our job is to map a c-suite's skillset onto the needs of the company. Knowing which variables matter is half the battle, and this study shows name brand pedigree can often be a false indicator."

The study provides a new framework for hedge funds and other investors to assess leadership, shifting focus from subjective credentials to objective performance metrics.

For the full report, visit: https://paragonintel.com/ceo-performance-analysis-how-education-and-consulting-background-impact-executive-alpha/

About Paragon Intel Paragon Intel is an executive analytics firm that provides institutional investors with a data-driven edge. Its proprietary platform, ManagementTrack, analyzes the track records and capabilities of C-suite executives to forecast company performance and help hedge funds generate alpha.

SOURCE Paragon Intel