With most people dedicating decades to their careers, the workplace often contributes to a real sense of lifelong purpose, particularly for CEOs who spend the majority of their time in the corner office. A recent study conducted by retired CEO Mark Lamberti and professor Charlene Lew of the Gordon Institute of Business Science, University of Pretoria, and published in the journal Personnel Review investigates how retirement impacts a CEO’s longstanding purpose.
Through over 34 hours of interviews with 17 CEOs retired from South African public companies, Mark Lamberti’s doctoral research has found that the perceived loss of purpose upon retirement often led to a complex process of identity reformation, where, throughout six distinct stages, CEOs sought out new post-retirement roles that provided a familiar sense of fulfillment and influence.
“Our findings show that CEOs experience a profound void upon retirement that goes beyond the loss of position — it challenges their fundamental sense of self,” said Mark Lamberti in a press release. “The transition demands a complete reformation of identity, involving complex psychological and social processes that haven’t been fully understood until now.”
Pre-Retirement Priorities:
Given the demand of their careers, Lamberti and Lew found that prior to retirement, none of the respondents had prepared for or even considered the impending identity reformation process. While most of the pre-retirement period was dedicated to shoring up their business dealings and naming a successor, CEOs also recognized the need to continue their societal contributions, often through philanthropy or shared expertise.
“So a massive chunk of your good fortune in life is purely luck. And then there’s obviously the hard work and stuff that goes with it. And so that’s always led me to believe that you owe it to the world to do something in return when you retire,” one participant noted.
Accustomed to the influential and impactful nature of their past careers, participants also expressed a profound desire to participate in the public sector but shared disappointment in feeling stifled by South Africa’s complicated political dynamics.
“[Contributing to politics] would have been my natural space because no one in politics understands business. And, you know, I could really have made a difference there, but not in this country,” one commented.
Post-Retirement Purpose Building Identity Shifts:
Following official retirement, Mark Lamberti’s research found that CEOs entered a stage of “liminality,” marking their initial identity destabilization where their urges to contribute manifested as a series of epiphanies. Falling into thoughts of emptiness, self-doubt, and uncertainty, these epiphanies confronted CEOs with the realization that their sense of purpose was tied to their careers.
“All of a sudden … I wasn’t connected to anything. I found that very unsettling. There were some days where I actually thought I was going to sort of fall apart completely,” a former CEO told the researchers.
“One can just think about depression, too much alcohol . . . You can see it when people start losing their sense of purpose; that is when these habits creep in,” another explained.
Seeking to regain some personal meaning, retirees turned to their most prominent relationships- their families, former colleagues, and lifelong networks- for what Lamberti and Lew refer to as “role identity cues,” signals that lead them to their new path. “What I did was reach out to a couple of people that I have really, really trusted and said, ‘Okay, now I need your advice just thinking things through,’” a retiree explained.
While expectations for retirement often differed, these cues provided CEOs with a greater understanding of how they wanted to move forward.
“I am not interested in taking on high-risk stuff that is going to blow up in my face,” one participant mentioned.
“I’ve no ambition now to go back to waking early, waking in the night and being fully responsible,” said another.
Finding that identity reformation takes an incredible level of discernment and introspection, Lamberti and Lew also noted that former CEOs looked to fundamental resources like their health, financial status, and expertise for further comfort and assistance along their journey. As participants began the process of embracing their new identities, these resources and external cues aided their “sensemaking,” which mended new purpose to their established competencies.
“I wanted to be involved with something that I have a passion for, and the people are passionate about…” a study participant shared. “I want to go into a business that’s got fantastic potential but is not at that full potential, where it really needs somebody to unlock it.”
Identity Narrative and Enactment:
To explain their identity before its final enactment, Mark Lamberti’s research determined that retired CEOs constructed identity narratives. These narratives- often developed in response to the social and societal pressures placed on CEOs- typically frame new roles around their greater purpose and personal connection.
One participant described this construction as “Finding my kind of higher order of capability based on deep experience and disciplined training I’ve been through in corporate life… “
“And again, that awakened, well, it was good positive affirmation stuff, you know, that you’re not useless, you haven’t been made redundant, that you’ve actually still got value and firepower left in you,” they continued.
As they finally began enacting their new identities, CEOs exhibited what researchers coined as “provisional selves,” different iterations of their new roles evoked to discern their highest level of personal meaning and impact. Unsurprisingly, those who felt the most fulfilled in their new roles focused on maintaining a similar sense of contribution felt throughout their careers while taking time for the comforts of retirement.
Given this profound desire for CEOs to continue their societal impact into retirement, this research carries significant implications for both institutions and executives. To prevent the post-retirement loss of purpose and assist in the change-making potential of CEOs, Lamberti and Lew suggest the development of simplified pathways for CEOs to contribute through meaningful opportunities for mentorships, non-executive director positions, consulting ventures, philanthropy, and political activism.
While ending a career can be a particularly disorienting experience for CEOs, Lamberti and Lew’s research shows that when it comes to fulfilling your deeper purpose, retirement is only the beginning.