Gen X, once poised to inherit corporate leadership, is being bypassed as baby boomer CEOs increasingly appoint AI-savvy millennials to the top job, driven by digital fluency, optimism toward new technology and a push to prepare companies for an AI-driven future. (Source: Image by RR)

Baby Boomers Retain Power While Skipping a Generation in Succession

Baby boomer CEOs are increasingly skipping over Gen X professionals in favor of promoting millennials to the top job, a trend reshaping leadership in corporate America. While Gen X still holds the largest share of CEO roles in the Russell 3000 at 43.4%, their representation has fallen from 51.1% in 2017. Meanwhile, as noted in finance.yahoo.com, millennial CEOs have grown from 13.8% to 15.1% over the same period, while baby boomer leaders—now making up 41.5% of chief executives—hold onto their positions longer than in previous generations.

Experts say a key driver is the generational divide over AI. With AI now central to corporate strategy, many boards view millennials as better suited to lead the transition. According to a Randstad 2024 survey, 50% of millennials use generative AI at work, compared to 34% of Gen X and just 19% of baby boomers. Millennials also tend to be more optimistic about AI’s potential, with 55% expressing positivity versus 37% of Gen X. Boards seeking digital fluency see millennials as a bridge between seasoned experience and forward-looking tech adoption.

This leadership gap is also fueled by workplace ageism and missed opportunities for Gen X. Some in their 50s report being passed over for promotions and challenging assignments in favor of younger employees. The perception that Gen X is less adaptable to emerging technology—and closer to retirement—has contributed to boards leapfrogging them in succession planning. This leaves many long-serving executives watching as younger leaders take the helm of billion-dollar companies.

Recent appointments highlight the shift. In 2023, Red Lobster named 35-year-old Damola Adamolekun its youngest-ever CEO. Lime elevated 36-year-old Wayne Ting in 2020, and Kickstarter tapped 33-year-old Everette Taylor in 2022. These millennial leaders combine industry experience with digital-native instincts, making them attractive picks for boards seeking to position their companies for an AI-driven future—often at the expense of the so-called “forgotten generation” that’s spent decades preparing for the role.

read more at finance.yahoo.com