When Is the Right Time for Executives to Retire?

In today’s corporate world, the question of when executives should retire is more pressing than ever. Recent political debates in the US have spotlighted aging, making it crucial for companies to address this issue with nuance.

Mark Cohen, who retired as the director of retail studies at Columbia Business School at 75, exemplifies the complexity of retirement timing. Using modern tools and a young assistant, he kept his lectures relevant and engaging. Cohen’s case highlights that performance should be the primary measure of an executive’s suitability, not age.

In the US, the average fashion retail CEO is 58.5 years old, nearing the typical retirement age of 65. Major industry figures like Bernard Arnault (75) and Robert Greenberg (84) are well past this age, yet they remain influential. Meanwhile, Warren Buffett at 93 even criticized LVMH’s retirement age cap of 80 as too restrictive.

Federal laws generally protect against age-related retirement mandates, but exceptions exist for top executives. These rules can refresh leadership and prevent difficult discussions about declining performance. However, they’re unevenly applied in fashion, where CEOs often retire on their own terms.

Age should not be the sole indicator of an executive’s capabilities. Research suggests that qualities like strategic vision can improve with age. Executives like Paula Reid argue that agility, not age, determines effectiveness.

Succession planning is equally vital. Executives must stay current with trends and technology. If they struggle with modern business practices, it’s a sign to consider stepping down. Self-reflection and rigorous company planning are essential for a smooth transition.

In conclusion, the right retirement age for executives hinges on their adaptability and performance rather than their years. Engaging in open, honest discussions about succession and conducting thorough assessments are key to making informed decisions.