Navigating C-Suite Role Expansion Amid Economic Uncertainty

By Tony Cinello, Founder – Anthony Andrew

If you’re running a $25M to $1.5B company right now, chances are you’ve already felt the economic shift. Inflation is driving up operational costs. Hiring freezes are hitting. And in many cases, you’re asking more of your leadership team—sometimes without backfilling critical roles.

What I’m seeing across our retained search work in Dallas, Houston, Austin, and beyond is this: The C-suite isn’t shrinking—it’s expanding. Executives are being tasked with more cross-functional responsibilities than ever before, and companies are having to make sharper decisions about who they bring in and what the role actually needs to deliver.

This article shares what’s driving that shift, how smart companies are navigating it, and why getting the executive role right—before filling it—is the most important step you can take right now.

The Expanding C-Suite: A Strategic Response

Between 2018 and 2023, Fortune 500 companies increased their top leadership teams by 23%, growing from an average of 6.7 to 8.2 executives (Deloitte, 2025). That same trend is showing up in the mid-market as well, just with tighter budgets and higher stakes.

In my retained search work, especially with PE-backed firms, healthcare providers, and IT services companies, I’m seeing more hybrid titles and blended responsibilities. CFOs are being asked to oversee operations. CROs are now expected to manage both top-line growth and post-sale client success. It’s not a title game—it’s a survival strategy.

What’s Driving the Shift?

• Rising executive compensation – Executive comp rose by 6.2% in 2024 alone, making every hire carry more weight (U.S. Bureau of Labor Statistics, 2025).

• Talent scarcity – 72% of mid-sized companies report difficulty finding executives with proven cross-functional experience (McKinsey & Company, 2023).

• Strategic complexity – Growth in uncertain markets demands leaders who can think across departments, manage uncertainty, and execute at pace.

Internal Promotions: Opportunities and Pitfalls

Promoting from within can work—but only if the person is ready for the real scope of the role. And in today’s environment, that scope is expanding fast. A recent study by McKinsey showed that only 32% of internal executive promotions are deemed successful within the first year (McKinsey & Company, 2023). The number one reason? The gap between expectations and actual readiness.

When External Search Makes Sense:

• You need multi-functional leadership (e.g., CFO/COO, CRO/Client Success)

• You’re expanding into new markets or verticals

• Your internal team lacks sector-specific experience

• You're preparing for capital events like an acquisition, exit, or financing round

This is where retained executive search delivers strategic ROI. It's not just about bringing resumes—it's about calibrating the role, validating internal assumptions, and making the hire stick.

How Smart Companies Are Responding

Across the clients I work with—from regional HQs in Dallas–Fort Worth to national PE portfolios—I’m seeing a common playbook emerge for navigating these leadership shifts. The most successful companies are doing three things well:

1. Role Clarity and Compensation Alignment

They’re designing hybrid roles intentionally—before going to market. That means:

• Aligning KPIs with business goals across functions

• Setting comp that reflects expanded responsibilities

• Resisting the temptation to “Frankenstein” roles without structural support

  
  

2. Structured Onboarding – Especially the First 100 Days

The Corporate Executive Board (CEB) found that executives who follow a structured onboarding plan are 3.5x more likely to hit performance targets. That’s why we help clients develop custom First 100 Days Playbooks, ensuring new leaders can ramp up fast—especially in dual-role scenarios.

3. Leadership Gap Mapping Before the Crisis Hits

Top companies are proactively mapping out their leadership pipelines. That means:

• Benchmarking internal candidates against external market data

• Identifying stretch-potential team members early

• Creating succession plans that match long-term strategic goals

  
  

The Role of a Retained Search Partner

In today’s economy, every executive hire is a high-leverage decision. And if you’re operating in the $25M to $1.5B range, one wrong hire—or the wrong structure—can set you back 12 months or more.

That’s why clients come to us not just to fill a seat, but to help define what the seat should be. As a retained executive recruiter, I:

• Help calibrate the scope and structure of critical leadership roles

• Benchmark compensation and title alignment based on current market data

• Access passive candidates with proven cross-functional success

• Guide onboarding and succession planning strategies to maximize long-term fit

Conclusion

In times of uncertainty, the right executive hire can steady the ship—or accelerate growth. But the definition of “right” is changing. It’s not about filling yesterday’s job description. It’s about building tomorrow’s leadership structure—on purpose.

If you're staring down a senior departure, market expansion, or board-mandated change, let’s talk. I’d be happy to share what we’re seeing in the market—and help you make the most informed decision possible.

Because in this market, leadership is everything. And structure comes before search!

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Tony Cinello Founder & President | Anthony Andrew Retained Executive Search for Mid-Market & Growth-Stage Companies

References (APA Format)

• Deloitte. (2025). Navigating new roles in the C-suite. Retrieved from https://www2.deloitte.com/us/en/insights/topics/strategy/new-c-suite-roles-and-responsibility-expansion.html

• McKinsey & Company. (2023). The state of organizations 2023. Retrieved from https://www.mckinsey.com/~/media/mckinsey/business%20functions/people%20and%20organizational%20performance/our%20insights/the%20state%20of%20organizations%202023/the-state-of-organizations-2023.pdf

U.S. Bureau of Labor Statistics. (2025). Employer Costs for Employee Compensation – December 2024. Retrieved from https://www.bls.gov/news.release/pdf/ecec.pdf