Company Founders and Organizational Performance

USA Today posted an interesting article about how founder-led companies perform better than their non-founder-led counterparts, with a 15-year stock price appreciation of 970% vs. the S&P 500 average of 222%.

While most business leaders will not be surprised by this finding, it's a finding that has been of interest to the investment community.

What are the reasons?

• Company founders have a deep, emotional, passionate connection to the business, which contibutes to them becoming great leaders
• Company founders typically have deep industry knowledge
• Company founders typically have risked a considerable amount, and have a large financial stake in the success of the business
• Company founders tend to take the long-term view
• Company founders tend to learn from their mistakes and rarely make the same mistakes twice