The Squeezed Middle is Breaking Leadership Pipelines and Boards Are Missing It
February 26, 2026 – Most leadership discussions focus on two ends of the organization. Entry-level hiring pipelines and executive compensation get airtime. The layer in between usually does not, according to a recent article from The Barton Partnership’s Michael Doud. “That blind spot is now one of the biggest risks to leadership continuity,” he said. “Middle management is where succession lives. It is also where compensation pressure, stalled progression, and attrition are most acute.”
Data from The Barton Partnership’s Compensation Insight Report shows a pattern that boards should be paying closer attention to. While senior compensation continues to rise, managers and principals increasingly feel boxed in. In the 2023–24 report, 36 percent of consultants and 41 percent of industry professionals expected to change companies within 12 months, despite the majority saying their pay was at or above market.
That internal tension is playing out across the broader labor market as well. Recent Gallup data cited by The Wall Street Journal shows more than half of U.S. workers are watching for or actively seeking a new job, the highest share in nearly a decade, even as white-collar hiring slows. The disconnect is leaving many employees feeling stuck rather than secure, contributing to the lowest levels of job satisfaction Gallup has recorded in recent years.
“That broader frustration is illustrated clearly in how senior talent evaluates compensation and progression in practice,” said Mr. Doud. “In consulting, respondents at the principal and associate partner level reported some of the lowest satisfaction with compensation relative to experience, even as average consulting salaries grew roughly nine percent year over year. In industry roles, compensation satisfaction improved slightly, yet turnover expectations remained high. This is the layer carrying execution, client delivery, and institutional knowledge. It is also the layer most often told to wait.”
When people see new external hires arrive at higher compensation, or see leadership roles remain static for years, the math becomes simple, according to Mr. Doud. “The fastest way to progress is to leave for greener pastures,” he said. “Over time, this erodes succession. Organizations end up paying a premium for external leaders who know less about the culture, strategy, and business than the people who already work there. It is counterintuitive, but it has become common practice.”
“Boards rarely interrogate this dynamic directly,” Mr. Doud continued. “Compensation committees tend to focus on executive benchmarking. Workforce discussions get delegated to management. Succession planning exists on paper, but often without the incentives or development pathways to make it real.”
What Retains People
The Barton Partnership’s data also points to what retains people when compensation alone is not enough. Career progression consistently ranks alongside financial reward as a primary driver of movement, particularly for women. Flexibility, accountability, and ownership matter more at this stage of a career than incremental salary increases.
Related: 6 Executive Search Trends Shaping Leadership in 2026
“Yet many organizations offer middle managers more responsibility without meaningful participation in long-term value creation,” Mr. Doud added. “This is where boards need to step in.”
Mike Doud is executive vice president, North America. He leads the firm’s accelerated expansion of its North American business, enhancing its global footprint and delivering The Barton Partnership’s full suite of services to its client base. Mr. Doud joined The Barton Partnership with a distinguished career in executive search and talent strategy. Most recently, he served as managing partner at Vaco, where he led search and talent functions, delivering tailored solutions to clients across various industries. His expertise in aligning top-tier talent with strategic business objectives has been instrumental in driving organizational success.
“Leadership continuity is not just about who replaces the CEO,” Mr. Doud said. “It’s also about whether there is a credible path for the next generation to grow, earn, and stay. That requires asking harder questions.” Are promotion timelines realistic? Are wealth creation mechanisms limited to the top? Are managers developing successors or protecting their own roles?
“If boards continue to overlook the squeezed middle, they will keep paying more for leadership while getting less of it,” Mr. Doud concluded. “Succession cannot be outsourced indefinitely. At some point, the pipeline has to hold.”
Proven Search Firm
The Barton Partnership is a U.K.-based executive search firm. With offices in New York, Chicago, Paris, Singapore, Hong Kong and now Sydney, the firm’s clients include FTSE-listed and Fortune 500 companies across all sectors/industries, SMEs, strategic, innovation and management consulting firms (large and boutique), global financial services, and private equity and venture capital organizations.
The Barton Partnership recently appointed Oliver Phoenix as CEO. Founder Nicholas Barton continues in his role as advisor and brand ambassador. “I couldn’t be prouder or more excited to announce Olly’s appointment to CEO as we move into the 18th year since I founded The Barton Partnership, and off the back of a record-breaking and award-winning 2024,” Mr. Barton said. “Founding, growing, and leading this business has been an incredible experience. Still, my greatest satisfaction has come from watching people within the firm evolve and grow over that time, and Olly is a great example of that. I’m looking forward to supporting our next chapter in my new capacity and I couldn’t be more excited and optimistic about the future of the firm and the incredible possibilities that lie ahead.”
Looking for the latest on partner compensation? The next installment of The Barton Partnership’s Compensation Insights Report will be released in the second quarter!
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Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
