By the end of the year a quarter of the fresh produce industry’s directors will be aged over 60.
A new study by industry analysts Plimsoll Publishing has looked at the impact these ageing directors might have on the financial performance and future direction of the industry’s top 1,500 firms.
Collectively these companies are led by 3,342 directors. They vary in age from the youngest at 20, to the oldest aged 99.
Over the next five years, if they all stay, 39 per cent of them will have turned 60. Just seven per cent of the directors are aged under 35 while 58 per cent are aged between 40 and 60.
The report asks whether the fresh produce market is as appealing as it was 10 years ago, and therefore in a position to attract more young directors to the business.
It delves into the financial position of the 1,500 companies studied and uncovers many reasons to leave the industry. Almost a third of the companies are in clear financial difficulties fifth failed to make any profit at all last year.
And while many of the directors might not feel ready for the stresses of the next five years, some have no choice but to face them.
David Pattison, senior analyst said: “It's debatable how many can afford to retire. If they are thinking of selling up then the business needs to command a good price…and not all believe it or not, are ready for this anyway.”
For these reasons, the analysis points to strong evidence that directors are hanging on well into retirement. The myth that your enthusiasm and motivation fails with age is completely unfounded as 186 companies run by directors over 60 increased both sales and profits in the last year.
But there is also the issue of whether fresh produce can offer the next generation of directors an exciting enough future. Average directors' salaries last year were £43,245 which compares to the UK average of £67,500 a year. And average directors' fees actually fell by one per cent in 2005.
But for top earners, salaries run at £142,000 a year. The typical time in office for a fresh produce director is five years compared to the UK average of just over five years. The full Plimsoll publication analysed the UK's top 1,500 firms, how financially sound they are and the key decision-makers responsible for their performance.
