If 2024 was the year of “stabilisation,” Q1 2026 is the quarter of ruthless efficiency.
The data from our recent executive search mandates and wider market analysis shows a stark shift in Board sentiment. The willingness to pay a premium for “potential” has decreased. Today, Remuneration Committees are trading lower base salaries for higher, performance-triggered equity packages.
The message to the C-Suite is clear: You can have the upside, but only if you de-risk the downside.
1. The CJPI Sentiment Gauge
We are currently seeing two distinct markets operating simultaneously:
- The “Maintenance” Market (Cooling): For leaders whose primary skill set is “steady-state management,” demand has dropped by ~18% YoY.
- The “Transformation” Market (Overheating): For leaders with a proven track record of post-merger integration or digital restructuring, day rates and base salaries are up 12%.
Our View: The “Generalist CEO” is becoming a difficult hire to justify. Private Equity sponsors are now bypassing generalists in favor of “Specialist Fixers”, the CEOs who are parachuted in for a specific 3-year cycle (e.g., “The Exit CEO” or “The Turnaround CEO”).
2. Spiking Founder Fatigue
Sector Focus: Tech & Manufacturing (<£50m Turnover)
We are tracking a significant spike in unplanned exits in the SME/Mid-Market space.
- The Trend: 1 in 5 Founder-CEOs in the £10m–£50m bracket are looking to exit operational roles in Q1 2026.
- The Driver: It is no longer just burnout. It is the widening gap between valuation expectations and market reality. Founders are realising they cannot “grow their way out” of the current valuation crunch without a different skillset.
- The Consequence: This is driving a surge in demand for headhunting focused specifically on “Scale-up to Exit” transitions.
3. Compensation Benchmarks
Data: Average UK Mid-Market Packages (PE-Backed)
The days of the inflated “Covid Base Salary” are over. In 2026, the cash component is flatlining, but the Long-Term Incentive Plans (LTIPs) are becoming more sophisticated.
| Role | Revenue Band | Base Salary (Avg) | YoY Change | The “Equity Kicker” Trend |
| CEO | £10m – £25m | £180k – £220k | -2% | Ratcheted equity up to 5% based on Exit Multiple. |
| CEO | £25m – £100m | £240k – £320k | 0% | “Hurdle Rates” for bonus payout have increased. |
| CFO | £10m – £25m | £140k – £170k | +4% | CFOs are commanding the highest relative cash increase. |
| CFO | £25m – £100m | £190k – £240k | +6% | High demand for “Strategic CFOs” (not just controllers). |
The “Anti-data” Insight:
While the average CEO base is flat, we have seen outliers command £400k+ base salaries in the £50m turnover bracket. The common denominator? They brought their own “black book” of customers. In 2026, commercial portability is the single biggest salary lever.
4. The Rise of the “Interim” C-Suite
Trend Watch: Fractional Leadership
A quiet but massive shift is happening in the £5m–£20m turnover space. Boards are increasingly rejecting the full-time, £200k CFO in favor of a “Fractional” expert costing £4,000/month.
- Why? It lowers the fixed cost base (EBITDA protection) while accessing higher-tier talent.
- The Risk: Fractional leaders often lack the cultural “glue” needed during a crisis.
- Our Advice: We recommend hiring leaders primarily for specific projects (e.g., “Get us audit-ready”) rather than long-term stewardship.
5. What This Means for Your Hiring Strategy
If you are looking to hire in Q2 2026, the data suggests three tactical adjustments:
- Stop Selling “Stability”: Top-tier candidates know stability is a myth. Sell the impact and the equity story.
- Audit Your Benchmarks: If you are using 2024 salary data, you are likely overpaying on base and under-offering on upside.
- Assess for “Grit”: The turnover data shows that “peacetime” leaders are failing in current conditions. We now use specific psychometric profiling to test for resilience, not just competence.
