A pressing issue in Japan’s business sector is the ongoing trend of an increasing average age of company executives. Recent research by Tokyo-based research firm Teikoku Databank reveals that as of December last year, the average age of company leaders was 60.5 years old, marking a slight increase from the previous year. Over the past 33 years, this upward trajectory has been consistent, with the average age rising from 54 years old in 1990 to its current level.
This trend poses significant challenges for ensuring a smooth transition of leadership to the next generation. With many executives reaching retirement age, there is a need for effective succession planning in the business world to ensure that companies continue to thrive and remain competitive. The data released by Teikoku Databank highlights this need and underscores the importance of addressing this issue head-on.
Teikoku Databank conducted their research using their extensive database of approximately 1.47 million domestic companies in Japan, providing valuable insights into this emerging trend. As such, it is crucial that businesses take steps to address succession planning and ensure that they have a solid plan in place for transferring leadership to younger generations. Failure to do so could result in significant disruptions and hinder progress in the Japanese business sector.
