In the age of AI, India Inc hires younger Independent Directors

Experts expect India to reap the demographic dividend over the next few decades with the working-age population rising and growing younger. However, when it comes to the corporate board rooms India Inc has been relying on experienced hands. In particular senior Executives, CXOs and retired bankers, regulators, and bureaucrats in their late fifties to sixties were selected as independent directors. However, the trend is apparently shifting towards younger boards as per a report published in The Times of India, India Inc is making its boards look younger.

Binoy Parikh, an executive director at Katalyst Advisors, was just appointed India Inc.’s youngest independent director at 31 years old. Sarda Energy & Minerals hired Parikh. Similarly, MapmyIndia CEO Rohan Verma, 34, joined Cholamandalam Investment and Finance Company as an independent director four years ago.

Accepting age diversity could be a game changer for many huge corporations. Organisations are focusing on age in order to respond to upheavals in their industries as well as the rise of new technologies such as blockchain and AI.

Over 800 independent director seats will become available in the next year. This is because Sebi requires independent directors to serve no more than two five-year terms on the board. Companies can then hunt for younger people to fill open positions. For the time being, the numbers are bleak, showing that there is still a long way to go. According to an April analysis issued by Excellence Enablers, only 46 independent directors of Nifty 100 businesses were under 50 years old as of March 31, 2022, while 480 were between 50 and 75 years old and about 30 were over 76.