Rethinking CEO Selection: Debunking Age-Centric Myths

Posted 24th Aug 2023 by Impeccable HR

The traditional belief that age is the primary factor in selecting a CEO is being challenged in the dynamic landscape of organizational leadership. A global report shows that the average age of millennial managers has been shifted to about 25 to 29 years in around 60% of the workforce, but some Indian reports state that “The broader trend in CEO age still doesn’t favor youth”. To gain a deeper understanding of the executive’s selection criteria, we conducted a survey among industry leaders and CHROs representing diverse industries. The questions were aimed to explore the relationship between age, industry dynamics, employee satisfaction, and adaptability to industry disruptions.
 

Biases of Age in Industry Dynamics

When asked about the relationship between industry dynamics and CEO age, respondents emphasized the multifaceted nature of CEO effectiveness. Mr. Mridul Srivastava, CHRO of Spectra, highlighted that success hinges on a combination of factors. He added that the most successful CEOs combine their unique attributes with a keen understanding of their industry and the ability to adapt to its evolving dynamics.

Age alone cannot serve as the primary determinant of a CEO's suitability, as stated by Mr. Ranjit Khompi, Head of HR at Reliance Industries.
 

Age agnostics versus Leadership style at different ages

Survey participants acknowledged a potential correlation between age and leadership in specific industries. However, Mr. Ashok Nambiar, Head of HR at Wirtgen India, emphasized that age should not be viewed as a definitive factor; consideration of skills, experience, and the organization’s specific needs should guide the decision. Furthermore, other leaders added that both younger and older CEOs bring unique qualities to the table. Younger CEOs bring fresh perspectives and agile thinking, while experienced CEOs contribute industry wisdom and insights

Young Adaptability versus Old Adamancy

When it comes to adaptability in the face of industry disruptions, success depends on embracing change, fostering innovation, and leveraging unique strengths regardless of age or experience level, as stated by Ms. Omita, Manager (Chief of Culture Experience Design and Transformation), Capgemini.
 

Age is merely a number, Leadership styles are true game changers

The impact of a CEO's age on employee satisfaction and engagement is determined by their leadership style, communication skills, and ability to inspire and motivate their workforce, as stated by Mr. Mridul Srivastava, CHRO of Spectra. He added that a CEO's effectiveness stems from their qualities rather than their age.
Nida Khanam-CHRO -Omega Seiki inference that Age or wisdom battle- to me it is purely the need of the business and organization, one can decide on age but agility is across every industry the main criterion for a CEO selection. There is no right or wrong age for being a CEO but great leaders are crafted through their journey.
 

Mr. Pankaj Minglani, Director of Impeccable HR Consulting, shared a holistic approach, i.e.it also depends on the sector the business is into, whether it is a start-up or large-sized manufacturing company or IT, etc. The right age of the CEO should be determined by various matrices to be designed including visionary, essential, and fundamental competencies of the candidate to be matched with a defined set of parameters required for industry-specific needs.

It is crucial to dispel the myth surrounding age as one of the primary determinants and recognize that CEO effectiveness is influenced by a multitude of factors.