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Economists spent years forecasting a “Silver Tsunami,” saying that Baby Boomers would age out of the workforce in one great wave. It never struck. Labor force participation among people 65 and older just hit 19.2%, up from around 12% at the turn of the century, according to the New York Post.
From Boeing to Verizon to Cracker Barrel, boards keep turning to older or even previously retired CEOs. As of June, 42% of sitting CEOs were 60 or older, an “elevated” level compared to historical norms.
Many Boomers refuse to exit the C-suite, partly because they’re living longer, and partly for psychological reasons. “There’s a fear that if I stop moving, I might die,” says Shawn Cole, president and co-founder of Cowen Partners Executive Search. “They all know someone who retired and then all of a sudden their body started falling apart.”
But the situation is setting up a real succession problem. Building an executive ready for the top job takes 15 to 20 years, and companies that keep leaning on aging leadership are burning through that runway. When the transition finally comes, Cole says, Millennials may not be ready. “These people were never allowed in the rooms and over the course of one or two years it’s gonna be a rapid succession,” he says. “Who thinks that’s a good idea?”