The senior living industry is bound to look much different by 2028, where leadership is concerned. Yet, many nonprofit senior living providers are still not focused on succession planning.
More than 70% of not-for-profit senior living CEOs are expected to retire in the next 10 years, according to the latest CFO Hotline report from Ziegler. That’s an uptick from when this poll was conducted in 2015, when about 68% of respondents said their CEO would retire within a decade.
For the report, the Chicago-based specialty investment bank polled approximately 145 not-for-profit senior living CFOs and financial professionals. About 62% of respondents worked at single-site organizations, while 38% came from multi-site providers.
Approximately 33% of the respondents said that their CEO will probably retire in under five years. Another 40% predicted that their CEOs would retire sometime in the next 5 to 10 years.
Back in 2015, 35% of respondents indicated that their organization has a formal, written succession plan in place for the CEO role. That number did not change in this latest survey, which could fuel worries that senior living leaders may be too complacent about planning for the future.
For the most part, current not-for-profit senior living CEOs have been with their organizations for at least five years.
Roughly 32% of respondents said that their organization’s CEO had been with the organization for more than 15 years; another 15% said their CEO had been there somewhere between 11 and 15 years; and 25% said their CEO had been there somewhere between five and 10 years. The remaining 29% said their CEO had been with their organization for under five years.
The CEO position isn’t the only senior living role that’s expected to see significant turnover in upcoming years. Approximately 18% of not-for-profit senior living CFOs are predicted to retire within the next five years, and an additional 43% are expected to retire in five to 10 years.
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There have been some new CEOs at nonprofits in recent months, including at Pennsylvania-based Acts Retirement-Life Communities, which named Gerald T. Grant as its new president and CEO in June 2017.
Written by Mary Kate Nelson