Executive Hiring Tightens Now, Sets Stage for Selective Rebound in 2026

Executive hiring is entering a new era — one defined by precision, discipline, and measurable impact rather than headcount growth. Dan Veitkus of Corsica Partners says boards and CEOs are now prioritizing “must-have” leadership roles tied to transformation, growth, and value creation. Mr. Veitkus joins Hunt Scanlon Media to discuss the shift from expansion to precision hiring, how market forces are reshaping executive search, and what trends are defining leadership demand heading into 2026.

November 1, 2025 – After a period of aggressive talent expansion fueled by post-pandemic recovery and capital liquidity, executive hiring is entering a new phase — one defined less by growth at any cost and more by targeted investment. Boards and CEOs are recalibrating leadership priorities, emphasizing profitability, transformation, and resilience over pure headcount expansion. The mindset has shifted from “who can we add?” to “what capability do we truly need right now?” This evolution is changing not just who gets hired, but how and when those decisions are made.

Across industries, we’re seeing a sharper focus on precision, alignment, and measurable value creation. Executive search mandates increasingly originate from clear business inflection points — digital transformation, margin compression, succession planning, or restructuring. The result: hiring remains active, but more deliberate. Firms are making fewer, more strategic appointments, expecting leaders to deliver immediate impact under tighter scrutiny and shorter timeframes.

“What I’m seeing is a move from expansion hiring to precision hiring at the executive level,” said Dan Veitkus, managing partner and CEO of Corsica Partners. “Boards and CEOs are narrowing mandates — fewer across-the-board C-suite additions, more “must-have” roles in transformation, growth, turnaround, or new strategic bets.”

Among public companies, hiring is more measured: succession, digital, ESG, or cost-optimization leaders lead the list, according to Mr. Veitkus. “In private equity backed firms, you’ll see compressed hiring windows tied to deal cycles — more active in the post-close value creation period,” he said. “For venture-backed companies (especially early to growth stage), the shift is toward fractional or interim executives, or using venture operators rather than full-time hires until scale justifies it. Across all sectors, I’m seeing increased use of stretch roles (e.g. a head of operations who also leads digital transformation), stronger alignment of executive mandates to financial metrics, and more rigorous fit and runway criteria.”

In short, Mr. Veitkus explained that executive hiring is alive, but it happens on tighter timelines and under greater scrutiny than in past cycles. “We’re now placing discipline ahead of volume in executive hiring,” he said. “For PE deals, the executive search window is a leading signal — not a lagging one.”

So what is causing this? “It’s a confluence of macro headwinds, internal pressures, and evolving expectations — especially at the C-level,” said Mr. Veitkus. He noted that a few of the strongest forces include:

Capital discipline and margin pressure — Boards demand returns; adding executives is not a cost you can absorb lightly.
Risk asymmetry in leadership — A mis-hire at the executive level carries outsized reputational and financial risk, so the selection bar is higher.
Investor scrutiny and activism — Private equity sponsors want executives who can deliver value quickly; public shareholders demand governance, ESG, and performance signals.
Talent scarcity and upskilling gaps — Deep domain, cross-industry, or transformation-capable executives are thin. The market for “fit + future-readiness” is narrow.
Expectation of speed and accountability — They are expected to shorten time-to-impact in 12 to 18 months or risk replacement.
Alternative models (fractional / gig / interim leadership) — Especially in VC and smaller PE platforms, there’s less willingness to commit before the business proves scale.

“A telling data point: PE deals have become more operationally intense — and that drives demand for executives who can hit the ground running in post-close value creation,” Mr. Veitkus said. “And in VC, there’s growing acceptance of fractional models for CFOs, COOs, etc., to preserve capital while testing the leadership fit.”

Dan Veitkus is managing partner and CEO of Corsica Partners a global executive search, recruitment process outsourcing (RPO) and growth advisory firm. The firm works with global, leading private equity firms, portfolio companies and recognized F500 brands to recruit senior talent, evaluate and develop high-potential individuals and scale growth companies effectively and efficiently. Corsica Partners’ search expertise extends from the boardroom to the back office, encompassing critical roles in the C-Suite to building and scaling across business functions, including sales, marketing, finance, human resources, engineering and product teams. The firm has placed over 4,000 professionals in technology product and services companies, including software, SaaS, PaaS, cloud services, robotics, consumer, semiconductor, healthcare IT, supply chain, AI, machine learning and blockchain.

“So, the cautious approach is not inertia — it’s a new maturity in how C-suite investment is evaluated,” Mr. Veitkus continued. “In executive search today, the upside must justify the risk — or the seat stays empty. Investor discipline now vetoes speculative executive hiring. And fractional leadership is not a stopgap — it’s a strategic option in early-stage deals.”

Near-Term Outlook

Mr. Veitkus’ baseline view is to expect a subdued Q4 with selective upticks in sectors tied to digital, AI, sustainability, M&A, and restructuring — especially in public and PE portfolios. “Into 2026, I lean toward a deliberate rebound in executive hiring, but one stratified by firm strength, sector, geography, and willingness to accept deployment timing risk,” he said.

“A few leadership mandates will resume — especially where delayed transitions, retirements or strategic pivots are unavoidable,” Mr. Veitkus said. “Firms with clean balance sheets (public or PE-backed) will lead. Boards will double down on executive mandates framed as value drivers (AI and digital transformations, growth, M&A, digital). Some backfill roles in transformation, innovation, ESG will slip through.

Looking to 2026

“I expect more confidence if macro cues soften (rate cuts, stabilized inflation, stronger growth),” Mr. Veitkus continued. “The most aggressive hiring, however, will likely be in sectors where disruption is accelerating: AI/ML, renewables, health tech, advanced manufacturing, supply chain. PE-backed platforms that have raised new funds will resume executive buildouts, particularly in commercial, operating and go-to-market leadership. Executive search itself may see an uptick in deal activity and consolidation — search firms betting on a rebound as cited by you, Hunt Scanlon.”

“That said, downside risks remain: a macro shock, renewed credit stress, or prolonged geopolitical disruption could derail confidence and slow hiring,” Mr. Veitkus stressed. “ The fourth quarter will be one where select executive mandates break through — but it won’t be a hiring wave. 2026 will be the year executive hiring reclaims momentum — but only for the prepared and differentiated.”

“Leaders who adapt now — in mindset, metrics, and managerial agility — will win the first leap upward when the cycle turns,” said Mr. Veitkus. “I also believe continued consolidation in our industry will result in clients continuing to gravitate towards the differentiation that boutique firms offer – with preference for personalized, meaningful and senior partner engagement over large conglomerates where search is no longer the core business or where size makes clients feel like just one of many.”

Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media