The banking industry is facing a leadership crisis. The world’s financial systems are under strain, as never before. Banks that operate in an information-technological environment are particularly vulnerable to shocks. They are under constant scrutiny, and their services are questioned by their clients and suppliers.
The challenges posed by these turbulent times are evident at every level. The financial sector is one of the highest-risk industries, which poses particular risks for banks that are dependent on short-term funding. At the same time, we are witnessing a greater withdrawal of trust from institutions and a move towards greater personalization and digitalization as services.
Moreover, the financial sector as a whole is ageing disgracefully. The average age of CEOs of the world’s top banks is 61, and their average tenure is 5 years. In other words, these CEOs are too old to lead their banks.
Why is the banking industry ageing disgracefully?
The banking sector is ageing disgracefully because the average age of CEOs is 61 years. This is a trend that has been observed in the UK and around the world. There are good reasons for this:
The banking industry is under constant stress, which affects their performance and requires more experience to deal with the complications that arise during these times. The average tenure of CEOs in the UK has been 5 years, compared to 3 years in North America.
The increasing complexity of financial services means that banks need leaders with greater experience and knowledge. As clients increasingly demand personalization and digitalization, banks will require leaders who can successfully manage these changes. The increasing complexity of financial services means that banks need leaders with greater experience and knowledge. As clients increasingly demand personalization and digitalization, banks will require leaders who can successfully manage these changes.
J.P. Morgan Chase & Co.
“The average age of CEOs of the world’s top banks is 61, and their average tenure is 5 years. In other words, these CEOs are too old to lead their banks.”
As a result of this, the CEO of J.P. Morgan Chase & Co., James Dimon, has been asked by shareholders to step down after 23 years in charge.
Dimon has led the company through difficult times and is credited with rescuing it after the financial crisis of 2008. However, his leadership style was not always well received by some stakeholders and staff members. Now that he’s 80-years-old, there are strong calls for him to be replaced by someone younger – someone who can bring fresh ideas and new approaches to the table.
Goldman Sachs Group Inc.
One bank, which is a case in point, is Goldman Sachs Group Inc. In 2016, the company’s CEO Lloyd Blankfein resigned after 12 years at the helm and was replaced by David Solomon. In his first year in charge, Solomon has had to contend with both a low share price and a class-action lawsuit from shareholders.
It would appear that changes are needed if we are to avoid an even greater disaster in the banking sector.
Is it time for ageism to be thrown out of the window?
Deutsche Bank AG
CEO John Cryan
The CEO of Deutsche Bank AG, John Cryan, is too old to lead the board. In fact, he is 67 years old and has been at the helm of this institution since 2015. This begs the question: who will be able to lead the charge as they continue to evolve and grow? Who can take on these challenges and secure the future of banking in this rapidly changing world?
While John Cryan’s age might not make him a bad leader for a bank like Deutsche Bank, it is clear that someone younger needs to take up the mantle. In order for banks such as Deutsche Bank to prosper in today’s economy, they need someone who can lead their growth into tomorrow.
as an Example
UBS AG was founded in 1854. Its CEO, Axel Weber, is 71 and holds the position of Chairman of the Group Executive Board. He started his career at UBS and has been CEO since 2006. His tenure is already 10 years.
Although there are other CEOs in the industry who are younger, they still have a lot more to learn and need time to develop their skills before they can assume leadership positions. Their work experience may not be sufficient for them to lead the bank within their first few years at UBS or any other bank.
This situation is clear evidence that CEOs must evaluate their professional development abilities before taking on roles at these banks. They should not assume that just because they have been working for many years, they have reached their peak productivity levels as leaders of these banks.
In the wake of this crisis, Barclays Bank has faced particular criticism. With a CEO age of 61 and an average tenure of 5 years, the bank is now led by its third-generation boss Bob Diamond. Some argue that his age and long tenure are detrimental to the bank’s future success.
This criticism has been rejected by others. They argue that having a leader who is young and in touch with the trends and challenges of the digital revolution will be beneficial for Barclays plc.
It is argued that, despite being old and unyielding, Bob Diamond still understands what it takes to lead a company in this day and age. He also understands how to gain both trust and respect from clients.
Bob Diamond was voted as one of the 50 most influential people in banking according to “The Banker”, which puts him ahead of more than a dozen British Prime Ministers like David Cameron, Theresa May, Boris Johnson, Gordon Brown and Tony Blair all put together!
The question remains: should he remain at the helm or should someone new be appointed?
The CEO of Barclays Bank, Antony Jenkins, is 64 years old, and has been asked to retire by the boards.
The CEO of Barclays Bank, Antony Jenkins, is 64 years old, and has been asked to retire by the boards. The CEO of Barclays is not just any old person; he is considered one of the most prominent figures in British banking. The board has acknowledged that the bank needs a younger CEO to compete with other big banks in a changing industry. Many people are believing that the bank should have a new CEO, or at least a new chairman. As some are suggesting, the current CEO of Barclays may not be up to the task when it comes to leading the board in this changing industry.