Indian corporate entities are actively introducing a youthful essence to their boardrooms. A notable example is Binoy Parikh, who at the age of 31, has been appointed as the youngest independent director within India Inc. Parikh holds the position of executive director at Katalyst Advisors and has been welcomed onto the board of Sarda Energy & Minerals, a company with a market capitalization exceeding Rs 6,600 crore.
Similarly, the trend continues with Upasana Kamineni Konidela, aged 34 and serving as the Managing Director of Family Health Plan Insurance TPA. She has been enlisted as the youngest female independent director at Zydus Lifesciences, a company boasting a substantial market capitalization of Rs 65,000 crore. It's worth mentioning that Konidela is the granddaughter of the founder of Apollo Hospitals, Prathap Reddy.
At the age of 34, Rohan Verma, the CEO of MapmyIndia, became an independent director at Cholamandalam Investment and Finance Company, a firm overseeing assets exceeding Rs 75,000 crore. This transition occurred four years ago. In a nation where millennials constitute the largest portion of the workforce, Indian corporate landscape is actively seeking to appoint youthful executives as independent directors. Binoy Parikh expressed, "Incorporating youthful independent directors injects vitality and forward-looking perspectives into corporate boards. Moreover, it addresses the age diversity disparity present in board compositions."
The concept of embracing age diversity holds the potential to be transformative for numerous major corporations. As organizations confront disruptions within their sectors and grapple with the emergence of innovative technologies such as blockchain and AI, age becomes a focal point. Parikh emphasized, "While we certainly acknowledge the sagacity and extensive experience of senior independent directors, younger individuals bring a distinct outlook in an ever-evolving business milieu and shifting consumer landscape. Their comprehension of digital and associated technologies equips them to provide board-level guidance on leveraging these advancements to engage consumers."
Monica Agrawal, the Managing Director (financial services - Asia Pacific) at Korn Ferry, a global talent search organization, notes a transformation underway in Indian boardrooms. She asserts, "The shifting landscape of technology, customer dynamics, and workforce composition has underscored the significance of generational diversity within boardrooms. As a result, business leaders in their late 30s and 40s are securing positions on boards. These boards are actively devising strategies to enhance their competitive edge, purposefully integrating both youthful energy and seasoned sagacity through appointments that augment the capabilities of the management team, effectively positioning them as a strategic asset," Agrawal further elaborated. In March, Sharekhan BNP Paribas Financial Services appointed Arjun Mohan (37), former CEO of UpGrad, as an independent director.
The exposure gained in boardroom settings is bestowing young leaders with invaluable insights early in their careers. Rohan Verma, who serves as an independent director at Chola, remarked, "My tenure as an independent director at Chola has undeniably contributed to MapmyIndia's journey as a publicly traded company. We achieved a successful IPO in 2021 and have adeptly managed our operations as a public entity post-IPO," Verma expressed.
Over the span of a year, over 800 openings for independent director roles are anticipated. This is a consequence of Sebi's stipulation that independent directors may hold their positions on the board for a maximum of two five-year terms. Consequently, companies are now seeking to populate these vacancies with more youthful candidates. "Considering India's market demographics, which reveal that nearly 75% of the population is under 40 years of age, it becomes imperative for the boardroom to include this demographic's representation in order to comprehend their behaviors, aspirations, and needs," remarked Suresh Raina, a partner at Heidrick & Struggles, a global talent search firm.
Presently, the data paints a somewhat bleak picture, highlighting the considerable journey ahead. As of March 31, 2022, merely 46 independent directors within the Nifty 100 companies were below the age of 50. Contrastingly, around 480 independent directors fell within the age range of 50 to 75, and approximately 30 directors were aged 76 or above, as indicated by a report released by Excellence Enablers in April. The report underscored that given the rapid and transformative changes transpiring within the economy and corporate sphere, the inclusion of younger individuals into these roles will augment the boards' relevance.
