Is 60 the time to move on?

• Author: Rock, Robert H.
• Position: LETTER FROM THE CHAIRMAN - Editorial

In September I attended a Genesis concert with a friend who is the CEO of a Fortune 100 firm. (For those who don't remember Genesis, it's a rock band formed in the mid-'60s featuring Phil Collins.) My friend is turning 60 this fall and is set to retire later this year after a highly successful seven-year tenure as CEO. Although still very active, both mentally and physically, he is retiring at this relatively young age as is customary for his company and for his industry. As we sang along with Phil Collins, I wondered whether "early retirement" was good for him or for his company.

As he contemplates what might lie ahead, my friend is being offered opportunities to participate at the highest levels of business, government, civic, and charitable organizations. A recognized world-class business leader, he is weighing these opportunities to determine whether they fit with his interests and talents. His early retirement will be filled with interesting and important posts, including his pick of the most prestigious boards of directors. He will continue to lead an extraordinary life, making significant contributions while having more time to spend with his equally extraordinary wife and family.

For the company, retiring a highly successful CEO at 60 may seem like throwing out a very scarce resource in his prime. Sixty is very young; the "new 40" as those of us in our late 50s like to believe (though we resort to earplugs to soften the rock music). Is 60 the appropriate time for a CEO to move on? In some highly innovative industries, such as investment banking, high tech, and pharmaceuticals...