Data from Deloitte shared exclusively with ET shows that the process works at just one of four organisations, although seven out of 10 do have a framework in place for succession planning.
Amid record C-suite turnover and increased mobility of top talent, India Inc is grappling with succession woes. Despite pressure from boards and investors to strategies beyond the CEO level, extending to CXO-2 and business heads, most corporates are unable to build a pipeline of leaders.
According to data from Primeinfobase, about 830 first-time independent directors were appointed in calendar 2023, up from 776 the previous year and 518 in pre-pandemic 2019. The average age of these first-time independent directors has declined to 53 years in 2023 from 59 years five years earlier.
A decade after the Companies Act 2013 made it mandatory for Indian companies to have at least one woman director on their boards, the needle has barely moved beyond the mandatory compliance threshold. Data shows that almost half the NSE-listed firms have only 1 woman director and 41 do not even meet the mandate of one director. However, 262 companies have at least three or more women directors. On an overall basis, the representation of women directors has increased to 20% of the total directors pool as of January 2024.
According to industry experts, the exodus of top talent on the real estate fund side is across all top positions including senior vice president and director in addition to managers, with many new funds looking at India as a growth opportunity.