Step into the impending tax leadership transition with insights from Tony Santiago's comprehensive analysis. Key takeaways include:
- Demographic Shift: By 2030, all baby boomers will have reached traditional retirement age, leading to the largest tax leadership turnover in U.S. history.
- Current Leadership Landscape: As of 2022, 47% of heads of tax and 39% of No. 2 positions are held by baby boomers age 58 or older.
- Accelerated Departures: Of those 58 or older, 69% are 61 or older, suggesting two-thirds of boomer-era tax leaders may retire within four years.
- Supply and Demand Issues: The tax industry faces a shrinking talent pool due to its captive labor market, while demand increases from regulatory pressures and industry changes.
- Gen X Shortage: There's a notable lack of Gen X talent to fill leadership roles, partly due to 1990s events that discouraged tax careers.
- Millennial and Gen Z Opportunity: Younger generations may be promoted to leadership roles earlier than usual, requiring rapid skill development.
- Retention Challenges: Identifying and retaining top millennial and Gen Z talent will be crucial, potentially leading to compensation issues.
- Changing Career Expectations: Younger generations are targeting earlier retirement, further complicating long-term leadership planning.
The article emphasizes the need for proactive planning to navigate this transition, including embracing new mindsets and employment models. It's essential reading for anyone involved in tax department management and succession planning.
