The odds of attaining a CEO/board level position decline rapidly after a certain age even for suitably qualified candidates, according to a new study.
Top qualifications and skills are no guarantee of a board seat; age and gender also impact the likelihood of securing these positions, according to leadership intelligence provider BoardEx. For even the most talented people who have the right mix of experience, career options will narrow as an individual ages, noted the study The Right Age to Be a Director.
Using BoardEx data, the study analysed the age at which individuals occupying CEO/board-level roles were appointed to their positions. This data was then used to determine the likelihood that an individual would reach these positions by a certain age. The study revealed that there are ages by which these CEO and board chair roles need to be achieved if a suitably qualified person is ever likely to gain such an appointment. As the candidate advances in years, the remaining likelihood declines gradually at first; and then much faster, until low levels of likelihood remain.
US & UK OUTLOOK
For CEO-hopefuls in the US, the odds of being appointed to the top spot are one in three when they hit the age of 55. In just six years, those odds decrease by 70%. The study shows that the average age of appointment to Chair is 59 while the oldest was appointed at 90. It also found that very few women are appointed to the position at any age.
In UK public companies, the age ranges are younger than in the US. The average age of appointment for the role of CEO is 49; 56 for Independent or Non-executive directors as they are commonly referred to in the UK, and 59 for Chair. The odds of appointment decrease as suitably qualified leaders age. A 49-year-old has a 50:50 chance at being appointed to CEO; but less than 10 years later, at age 58, there is just a one in 10 chance of being appointed.
The following table illustrates the declining odds of achieving a CEO or board chair position based on age.
GENDER MATTERS
The window of opportunity for board appointments is longer for qualified men than it is for qualified women in both the US and the UK. Women tend to be appointed to board seats at younger ages than men, but within a tighter time frame. The age range for US CEO appointments span 55 years for men and 36 years for women; while most women secure CEO appointments between the ages of 46 and 59. In the US and UK, Independent director roles deliver the most gender balance of all board roles. Around 93% of US and 82% of UK board positions held by women are as Independent directors.
Recruiting candidates of different age groups is another executive diversity trend that has gained attention in recent years. Companies are beginning to realise that age diversity can lead to both stability and innovation.
The analysis of 42,608 individuals leading 5,944 US & UK public companies, focused on the age of appointment for all director roles including Executive director, CEO, Independent director and Chair. Click here for more information about BoardEx’s report.
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