This updated report from TaxTalent highlights the significant demographic shifts occurring in tax leadership positions. Key findings include:
- Accelerated retirements: Over the past three years, 20% of Heads of Tax and 25% of #2 roles have retired or moved up, largely due to Baby Boomer exits accelerated by COVID-19.
- Ongoing demographic challenges: 48% of Heads of Tax and 40% of #2 roles are still held by Baby Boomers (ages 58-76), indicating more retirements are imminent.
- Shifting retirement trends: Tax leaders are now considering retirement earlier (around age 62) compared to the previous norm of 65+.
- Widespread impact: These trends are expected to affect not only corporate in-house tax departments but also accounting firms, law firms, and government tax agencies.
- Succession challenges: Gen Xers and older Millennials are being rapidly promoted to fill leadership gaps, often with less preparation than previous generations.
- Compounding factors: Remote work environments, increased U.S. tax functions due to SPACs and spin-offs, ongoing tax code changes, salary inflation, and ESG pressures further complicate the situation.
We emphasize the importance of proactive planning and educating HR and financial leadership about these demographic shifts to address potential recruitment and retention challenges. The report offers resources for further discussion and planning to navigate these significant changes in the tax profession.
