Italy is not a country for young people. Or at least large corporations aren't. From an analysis of spencer stuart, a private American business consultancy company, specialized in the recruitment of managerial and high-level officials, it appears that the CEOs under 40 in the top 100 Italian companies they are only 2%, a percentage even lower than that of over 80 (3%). There is thus a lack of real generational change.
Il Board Index 2023 by Spencer Stuart analyzed the top 100 Italian companies by capitalisation, of which 38 are listed in the FtseMib index.
The average age of the Board of Directors is growing
The average age of members of the Board of Directors is increasing. L'average age has increased from 57,7 to 59,2 years between 2022 and 2023, with women younger, 57,4 years on average, compared to men at 60,5 years.
La greater concentration of age, 42%, are between 51 and 60 years old. There is also a significant difference between the age of presidents (64,6 years on average) and that of CEOs (57,9 years).
The inclusion of young people on boards of directors in Italy is currently limited, with i “Next Gen Directors” (councillors under 40) who make up only 2% of the total, while councilors over 80 are 3%.
There is a lack of structured succession plans
The absence of a generational change on the boards is related to that of lack of structured succession plans. According to Spencer Stuart, in the future, companies will need to focus not only on integrating new generations into boards, but also on well-structured onboarding and training processes to enable young people to contribute meaningfully to top organisations.
Although the Corporate Governance Code requires boards to establish a succession plan for the CEO and executives that is activated in the event of an emergency, only 17 companies, less than 20%, have a structured plan for this purpose. About half, 57 companies, say they have a “contingency plan” for emergency situations, while 37 don't have one. This highlights a cultural resistance in Italy in dealing with the issue of succession until the problem arises, with the risk of underestimating the associated dangers.
Furthermore, the lack of a structured succession plan for the CEO in large listed companies, including those of the Ftse Mib, is a cause for concern for stakeholders.
“In our country, in particular, there is a cultural resistance that leads to postponing the issue until the problem arises, with a dangerous underestimation of the risks that this can bring. Having structured and continuously updated plans over time, in addition to strengthening the company, means focusing on internal talents that must be valorised and made to grow, as well as external talents with scouting. The social role of the CEO is also expressed in this” he explains Giovanna Gallì, partner and director of spencer stuart.
And the women?
In the Spencer Stuart index, which includes over 100 companies, the number of women in boards of directors increased slightly, reaching 397, with a share of 42%, just one percentage point more than in 2022 (41%). Between 170 new appointments, 49% are women, showing almost gender parity.
Change the question when it comes to executive roles. Here the situation deteriorates: only 20 women hold these positions, 3 fewer than in 2022. Of these, only 5 are directors or managing directors, representing only the 4,4% of the total of the roles of director or managing director. Of the 16 female non-executive presidents, only 2 hold executive president positions.
Spencer Stuart Table
