Learn about the evolving landscape of U.S. tax leadership with Tony Santiago's comprehensive demographic analysis. Key takeaways include:
- Impending Exodus: 45% of heads of tax and 39% of No. 2 positions are held by professionals aged 59 or older, risking significant leadership loss within 5-7 years.
- Retirement Trends: The percentage of baby boomers in tax roles has remained surprisingly steady, dropping only 1% from 2021 to 2023.
- Leadership Composition: 45% of head of tax positions and 39% of No. 2 positions are held by baby boomers.
- Five-Year Outlook: By 2028, 44% of current heads of tax will be 65 or older, suggesting a potential loss of 40% of No. 1s and 30% of No. 2s within five years.
- Talent Pipeline Challenges: The U.S. tax industry faces unique difficulties in importing talent and attracting new entrants due to the complex tax code and changing perceptions of the profession.
- Generational Shift: With a shortage of experienced Gen X candidates, some millennials may be promoted to leadership roles a decade earlier than previous generations.
- Retention Strategies: Identifying and retaining top millennial talent will be crucial, potentially requiring competitive compensation and justification to HR.
- Preparation Tactics: Tax leaders should focus on developing capable Gen X talent, identifying top-performing millennials, and preparing for increased workloads amid resource constraints.
The article emphasizes the need for proactive planning and talent development to navigate this significant leadership transition in the U.S. tax profession. It's essential reading for tax leaders, HR professionals, and anyone involved in succession planning in the tax industry.ntial reading for anyone involved in tax department management and succession planning.
