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Shareholders of BNP Paribas endorse an increase in age limit for potential CEO candidates.

French Investors Support Extension of Terms for Jean-Laurent Bonnafe and Jean Lemierre in CEO and Board Chair Positions, Respectively.

BNP Paribas shareholders endorse a rise in the maximum age for the chief executive position.
BNP Paribas shareholders endorse a rise in the maximum age for the chief executive position.

Shareholders of BNP Paribas endorse an increase in age limit for potential CEO candidates.

In the dynamic world of finance, the age of CEOs is a topic of growing interest. Recent changes in leadership at various banks highlight this trend.

Gunjan Kedia has been installed as the new CEO of U.S. Bank, replacing Andy Cecere who moves into an executive chairman role. Cecere, who has been at U.S. Bank nearly 40 years, is a testament to the long-term commitment often found in the sector.

Similarly, Jean-Laurent Bonnafé, the CEO of BNP Paribas, has been given a three-year extension, keeping him in the role until 2025. This decision comes after shareholders approved raising the age limit for the bank's CEO from 65 to 68.

However, the average age of CEOs can vary significantly across different industries and regions. While specific data for European bank CEOs is not readily available, credit union CEOs in the United States are around 66 years old.

Bonnafé's tenure at BNP Paribas, which began in 2011, might provide some context. However, without specific information on his tenure, a direct comparison to an average is challenging.

Meanwhile, in the United States, there's a potential "looming retirement cliff" as the average age of current bank CEOs is about 58. This includes Bank of America's Brian Moynihan (65), Wells Fargo's Charlie Scharf (60), and Citi's Jane Fraser (57).

The leadership advisory firm Russell Reynolds has stated that banks' CEO succession plans are lacking. This is a concern that extends beyond BNP Paribas, as the aging of CEOs could lead to a potential leadership vacuum.

JPMorgan's succession planning is underway due to the aging of its CEO, Jamie Dimon, who is 69. Dimon, who has been the CEO since 2005, has indicated that his timetable for retirement is not five years anymore.

At JPMorgan, Jennifer Piepszak, who was co-CEO of the commercial and investment bank, has filled the COO role after Daniel Pinto stepped back. Piepszak, who was considered a contender to replace Dimon, has indicated a preference for a senior operating role over being considered to succeed him.

BNP Paribas has faced criticism regarding succession, and the bank lacks obvious candidates to replace Bonnafé. Bonnafé's two chief operating officers, Yann Gérardin and Thierry Laborde, are 63 and 64, respectively. The bank believes Bonnafé has demonstrated the commitment and skills necessary to continue leading the bank, and his fixed annual pay has been increased by about 25%, to €2.3 million.

As the financial sector navigates the challenges of an aging leadership, the focus on succession planning and the development of new talent will undoubtedly continue to grow.

The news about Gunjan Kedia taking over as the new CEO of U.S. Bank and Jean-Laurent Bonnafé's extended tenure at BNP Paribas, both in the high-stakes world of business and finance, sheds light on the varying ages of CEOs in this sector. Despite the aging of CEOs becoming a potential concern for banks like BNP Paribas, the average age of current bank CEOs in the United States, including Bank of America's Brian Moynihan, Wells Fargo's Charlie Scharf, and Citi's Jane Fraser, is significantly younger at around 58, highlighting the need for effective succession planning and nurturing new talent in the finance industry.

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