Board diversity: why age matters?

On June 28^th 2024, readers were greeted with headlines criticising the former US president following a contentious debate. Joe Biden faced widespread media scrutiny for reportedly “stumbling and wavering” during a pivotal moment in his campaign. And the weeks following this were pivotal, leading to the former US president ending his re-election campaign. This incident sparked discussions among leaders and the public alike, as the contentious question of age in leadership was brought to the forefront.

To me, this seems to have ageist implications on the surface. However, it also brings to light a whole host of other issues. Often a taboo subject, cognitive abilities naturally decline with age. There is a real need for fresh ideas at the senior level, and a board that never changes its leaders faces a very real risk of stagnancy.

It’s a nuanced topic: is there really an age where the biological clock takes over, and it’s time to call it quits? Or, are we simply an inherently ageist society ready to jump on any sign of weakness and pin it to age?

As we begin to look more closely at the age of those who lead our countries, maybe it’s time to discuss board diversity at the most senior level in organisations. Age matters, but it’s all too often overlooked.

Let’s explore the case for age diversity at board level.

Do we have a diverse board?

With the average age of a CEO being 55 and the average age of a board director being 63, you wouldn’t be wrong to believe that the balance is swung in favour of the older generation. Yet that’s not quite the case. The age of the most senior leaders settles firmly in the middle, meaning representation at the youngest and oldest ends of the spectrum is slim.

I’d like to caveat this by saying that we can’t pin ageist intentions on all these trends. While it’s easy to assume ageist intentions, what seems on the surface to be discrimination can be the outcome of some well-thought-out logic. The age of leaders often falls in the middle range to achieve an optimal balance between experience and cognitive ability, while staying flexible and open to fresh ideas. Many companies argue that the reason they implement mandatory retirement laws is to make room for fresh voices and ideas.

Yet, the truth of the matter remains that both ends of the age spectrum are shockingly misrepresented in leadership.

Younger generations are often excluded due to a perceived lack of experience or insight. And while these are very real concerns, it’s important to remember that trends aren’t predictors of behaviour. Plus, things are clearly changing, and organisations should be reflective of this evolution. We’ve recently had the youngest ever MP elected, Sam Carling, and today 40% of people have a boss who is younger than them. It’s becoming more apparent than ever that age isn’t a measure of ability.

At the other end of the spectrum, a recent example from Apple brought the issue of discrimination towards older workers to light. Former US Vice President Al Gore, 75, was forced to step down from Apple’s board. The company’s age-based restrictions stated that he could not work above 75. It seems shocking to me that this type of discrimination is still so widely accepted. But age is one of the last socially accepted prejudices, so it all too often goes unquestioned.

There’s much more value to be found from putting aside our prejudices and assessing individuals on a case-by-case basis.

So how do we tackle the very real issue of age diversity at the most senior level?

Why does age diversity on the board matter?

We already know that age diversity is integral to the success of businesses. But I’d argue that at the most senior level, it is even more crucial. Leaders have the power to set the tone for the whole organisation, and it’s important they use this to model best practice. But aside from this, there are heaps of benefits that comes from embracing age at the senior level.

1. Complementary intelligence

One of the biggest blockers to an age diverse workforce is the myth that old people can’t learn new things, and new people are too inexperienced.  Yet the truth is age and ability aren’t synonymous.

It’s true that our brains undergo cognitive decline as we age. But is it fair to tar all older workers with the same brush? We are quick to assume age comes with incompetence, or resistance to change. However, there are multiple cases against the point: just think of Warren Buffet, the CEO of Berkshire Hathaway, who, at 93, has been described as the greatest investor of all time.

Black and white thinking when it comes to age and competence is damaging, when in truth the topic is much more nuanced.

In fact, according to the model of fluid and crystallised intelligence, both young and old age cohorts have cognitive skills that complement each other.

Fluid intelligence is associated with problem-solving, reasoning, and adaptability. It enables quick thinking and flexibility. You use it to incorporate new information and learn. It is more predominant in younger workers, it gradually increases until adolescence, then declines. On the other hand, crystallised intelligence is information from the past you have learnt and stored. It increases as you age and gain life experience, and plays an important role in reviewing processes, using past experience to apply to current situations. Crystallised intelligence increases with age and stabilises as you get older.

We must rewire our thinking around age and ability. Yes, abilities change as we age, but this shift is not a decline, just a divergence.

A good board should have an adequate balance of both types of intelligence. Too much fluid intelligence and you won’t have the measure and hindsight needed to create a well-informed strategy. Too much crystallised intelligence, and the board lacks innovation and fresh ideas.

When boards have a mix of both, they can artfully balance innovative drive with reflective experience. An age diverse workforce needs a more well-rounded board, one that is better balanced and able to produce and follow through with cutting edge ideas and solid plans.

2. Leaders have power

I read a great quote about addressing elephants but allowing the ants to walk by. In short, organisations are quick to tackle the biggest issues of diversity in their organisation, yet the true crux of the matter is that diversity has to be part of your culture. That means addressing the smaller issues (the ants). Unfortunately, ageism is still a socially accepted norm, and is one of the ‘ants’ that we frequently allow to walk by. 

Including age diversity at the most senior level is essential: for organisations to truly integrate age diversity into their company it must be modelled from the top. Leaders have the power to integrate true DE&I throughout the company, yet all too often choose to let micro-aggressions go unchecked.

3. Board diversity increases engagement

We can draw very realistic parallels with the way the country is run, and the way organisations are run.

During an election, each Member of Parliament is chosen to represent their constituents, ensuring that the collective government incorporates a diverse array of voices and perspectives. Senior cabinet members are similarly selected to represent a broad spectrum of interests. This diversity enhances the government’s effectiveness by ensuring it considers a wide range of viewpoints and accurately represents the population it serves.

It’s a valuable lesson about the importance of diversity at the senior level. Having an age-diverse board of directors in your organisation not only provides a platform for a wide range of perspectives but reassures employees that their voices are represented.

When employees see themselves reflected in at the senior level, it fosters a greater feeling of connection and motivation —which are both cornerstones of engagement. In contrast, a board consisting of a homogenous group of leaders can make employees feel disconnected from decisions made at the highest level.

Board diversity: where to start

You don’t have to revolutionise your board or C-suite, but there are three key areas you can focus on that will help you begin to increase the inclusivity of your senior leaders.

1. Consultation

This involves consulting older and younger leaders on policy, strategy or ideation. This could be through the practice of shadow boarding or generational think-tanks.

2. Co-leadership

This leadership model includes shared decision-making responsibilities, such as a Co-CEO, which has been proven to have a positive impact on shareholder value. They have even been implemented at Google, with 28 year old Larry Page and Sergey Brin convincing Eric Schmidt (48) to join them as CEO and provide what they described as ‘adult supervision’.

3. Separation

Some companies install separate decision-making bodies, not unlike the bicameral government set up of the UK, in which the house of commons and lords exist as separate decision-making policies to make shared policies and laws. A ‘chamber’ of younger workers can propose fresh ideas to a separate ‘chamber’ of more experienced executives.

Final thoughts

Recent events have proved that board diversity at the senior level is an even more topical issue than ever before. And while there are multiple nuances to consider, increasing the diversity at the senior level doesn’t have to involve seismic shifts. We can start by shifting our black and white thinking when it comes to age and ability, and increase representation at the highest level.