Several prominent executives in fashion and retail are inching past the average retirement age in the US, prompting the conversation around ageism and succession planning.
The average age of fashion retail CEOs is 58.5 years old, just a few years shy of the average US retirement age of 65, according to Kirk Palmer Associates’ analysis of 137 CEOs of publicly traded fashion and retail companies. Although some firms have age-related retirement mandates for board members and C-suite executives, these policies aren’t often strictly enforced in the fashion industry.
Kyle Rudy, a senior partner at Kirk Palmer Associates, told Business of Fashion that not all senior executives want to hang on to their seats. In fact, many plan to retire before they reach the age of 60. CEOs who hold on to their post at any age, despite waning company performance could be dealing with personal dilemmas like finding purpose, worrying about weaknesses in a potential successor, or fearing that no one is up to task for the job.
Still, age is not a barometer for capabilities. It is important to remember that subject matter expertise and skills aren’t directly correlated with age. Firms should instead assess technical abilities and soft skills like critical thinking and communication as needed. Rudy said agility is the best indicator of when to hang the hat – not age.
“If they’re having difficulty wrapping their minds around diversity, flexible work, sustainability, TikTok, AI — and they’re consistently pushing a rock uphill trying to get back to the way things were, it’s time,” Rudy said.
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