CEOs get younger in India Inc

India may be led by a septuagenarian Prime Minister but when it comes to the corporate world, the leaders are getting younger by each passing year, with executives in the late 30s and early 40s filling the top posts.

According to a study by global recruiting firm EMA Partners, the average age of leadership positions in India Inc across all industries has dropped by as much as nine years in the past five years.

“The number of younger people taking up top executive positions is more pronounced in emerging sectors like IT and ITEs, banking and financial services compared to the old economy areas like manufacturing,” EMA Partner Indian Managing Director K.Sudarshan says.

The average age of a CEO in the banking and financial sector had dropped to 42-45 years in 2006 compared to 49-52 years in 2001, the EMA study said.

In technology and software services, the average age of a CEO has come down to 36-40 years this year from 40-42 years in 2001.

The manufacturing sector, however, continues to be the bastion of old hats, with the average age of a CEO being 48-53 years (2006) as compared to 56-62 years (2001). Interestingly, this sector witnessed the biggest drop in the average age of a CEO by nine years.

“There is a co-relation between the drop in the average age and the burgeoning demand for such professionals,” Sudarsan says, adding that while sectors like IT, BPO and financial services witnessed great demand, younger executives are giving the traditional industries, like manufacturing, a miss and opted for more exciting careers elsewhere.

Sudarsan says the drop in the average age of leadership positions among the corporates reflected the evolution and maturity of the sectors.

“While manufacturing is a more mature field in India, sectors like IT, ITEs, banking and financial services are relatively new and still moving towards maturity,” he says.

The drop in the average age of top leadership has also been witnessed in the CFO and HR head positions.

According to the EMR study, the average age of a CFO in the banking and financial services came down to 37-40 years in 2006 from 42-45 years. In technology and software, it was down to 36-39 years (2006) from 39-42 years in 2001, while in manufacturing, it was down to 46-50 years from 49-55 years.

Alarmingly for India Inc, the study pointed out that young managers were no longer ready to go through the grind of serving in the shop floor in remote factory locations or working in difficult markets.

They prefer high-growth emerging businesses, and dual careers (working spouses) compound the problem, it says. — PTI