Less Urgency, More Coherence: How the Executive Market Is Changing

By Katiuscia Cardinali Senior Partner Page Executive Italy

 In recent years, the labour market has been undergoing a structural transformation that goes far beyond the evolution of organisational models. What is being reshaped is the very relationship between individuals, work and enterprises.

From our privileged vantage point in executive search – through hundreds of executive search and advisory assignments conducted every year – clear patterns and trends are emerging. These dynamics are having a direct impact on leadership decisions and on organisations’ ability to attract and retain top-level talent.

The first notable dynamic is a renewed vitality in the market, particularly within small and medium-sized enterprises. An increasing number of entrepreneurs are demonstrating a heightened awareness of the strategic value of talent; not merely as a growth lever, but as a decisive factor for continuity, competitiveness and long-term sustainability.

Generational turnover, combined with the need to navigate increasingly complex economic and industrial environments, is accelerating decisions that until a few years ago were often postponed.

At the same time, the executive market has become remarkably mobile. According to our latest Executive Compensation & Talent Trends 2026 research, 95% of Italian executives and senior leaders are open to new professional opportunities, while 57% are actively looking for a new role. Furthermore, nearly one executive in three does not expect to remain in their current position beyond the next twelve months. These figures underline not only a dynamic market, but also a growing willingness among senior leaders to reassess what they expect from work and leadership.

We are also observing a gradual loss of centrality of work as the sole source of identity, even at senior leadership levels. For today’s executives, career decisions are increasingly the result of a nuanced balance between professional ambition, quality of life, values alignment and personal sustainability. The role itself remains important, but it is no longer sufficient unless it is embedded within a clear and credible narrative; one that reflects a much more sophisticated equilibrium between ambition, quality of life, value coherence and long-term personal sustainability.

This shift is becoming increasingly measurable. While 65% of Italian executives report being satisfied with their current compensation, less than half (46%) consider remuneration the primary driver of professional satisfaction. This suggests that compensation remains important but is increasingly viewed as one component of a broader employee value proposition rather than the decisive factor in career choices. 

Another significant point of discontinuity is the growing polarisation of bargaining power. High-impact executives, capable of generating value in complex contexts and leading transformation, now enjoy an unprecedented freedom of choice. Other segments of the market, by contrast, face greater uncertainty. As a result, the executive market has become both more selective and more fluid: role changes are more frequent than in the past, yet also far more carefully considered.

In this context, there is a rising – initially implicit, now increasingly explicit – demand for transparency from organisations. Senior candidates arrive well informed, ask precise questions and assess companies with the same rigor and consistency applied to them. Employer branding, purpose and corporate culture can no longer remain aspirational statements; they must translate into observable behaviours, governance models and verifiable processes.

The importance of transparency is particularly evident in compensation practices. Our research shows that 68% of executives believe their organisation's remuneration policies are not sufficiently transparent. This finding highlights an increasingly critical expectation among senior leaders: understanding not only what they are paid, but also how decisions are made, how performance is assessed and how rewards are allocated. Transparency has become a trust-building mechanism and an increasingly important retention lever.  

Executives are asking more targeted questions about governance, reputation and leadership. The candidate experience itself has become a measure of the organisation, not just of the role on offer.

How Executive Values Are Changing

When we examine how executive candidates’ values have evolved over the past ten to fifteen years, the shift is unmistakable. In the past, status, scope of power and role size formed the core of decision-making. Today, while these factors remain relevant, they are no longer decisive.

Executives are increasingly seeking meaning. They want to understand the why behind a role, the impact they can generate, and the coherence between the opportunity and their professional and personal trajectory.

A second key value is the quality of the human and decision-making context. The relationship with the CEO, the board and the top management team is often a determining factor. There is growing attention to authentic, non-toxic environments, ones where dissent is possible, autonomy is respected and leadership is credible.

The data reinforces this trend. More than four in ten executives state that trust in the leadership team is fundamental to their professional satisfaction, while 47% report having considered new opportunities because of dissatisfaction with leadership decisions. Leadership quality is therefore no longer simply a factor in performance; it is increasingly a determinant of retention. 

The third element concerns the sustainability of performance. Senior leaders today are far more aware of the personal cost of leadership. Workload, clarity of priorities, governance models and implicit expectations are assessed with great care. This does not signal diminished commitment, but rather a search for a sustainable balance over the long term.

This is also reflected in changing expectations around flexibility. While 45% of executives still work full-time from the office and many organisations continue to operate with traditional workplace models, four out of ten senior leaders now identify flexibility as a critical consideration when evaluating a new opportunity. The challenge for organisations is therefore not simply policy design, but the ability to align leadership culture with evolving workforce expectations. 

The Role of Selection Processes and Candidate Experience

All of this demands a significant effort from all parties involved, including executive search professionals themselves. Achieving an effective match between demand and supply now requires processes grounded in clarity: objectives, seniority level (and corresponding delegation), available resources, performance evaluation criteria and stakeholder alignment must be clearly defined from the outset of the search.

This urgency is made even greater by the ongoing talent shortage. Two-thirds (67%) of Italian organisations report having experienced difficulties attracting and hiring talent over the past year. Yet only 12% of hiring leaders say they place greater emphasis on skills than on traditional academic and professional credentials during selection. This suggests that many organisations may still be overlooking potential talent pools by relying on conventional evaluation criteria. 

This explains the growing importance of the candidate experience, understood as transparency, quality of dialogue and consistency between what is communicated and what is practiced. The candidate experience has become a reflection of the organisation, not merely an assessment of the role.

Less Urgency, More Coherence

Today’s executive market is driven less by urgency and increasingly by coherence. Senior leaders are no longer simply seeking “the next step”; they are making deliberate choices aligned with their values, distinctive competencies and stage of professional life.

At the same time, organisations face a growing internal challenge. Only 40% of Italian executives express confidence in their organisation's ability to adapt to market changes, significantly below the European average. This highlights a broader issue of organisational alignment and reinforces the importance of leadership capable of transforming strategy into execution while maintaining trust across the organisation. 

For organisations, the message is clear: the ability to attract leadership depends less on job titles, and increasingly on the overall credibility of the organisation itself. The winners in this new market will not necessarily be those offering the highest compensation, but those able to demonstrate clarity of purpose, leadership consistency, organisational transparency and a sustainable environment in which executives can perform, grow and create long-term value.