The Executive Dilemma: Will Reducing Responsibilities and Taking a Pay Cut Bring Bliss?

By Cheryl L. Mason, J.D.

A definite trend is developing among senior leaders stepping back or repositioning into different roles, many with less responsibility and less pay. Why?

From my perspective, it is a combination of burnout, high expectations, lack of organizational support, the lingering impact of the pandemic on all of us, including leaders, and the knowledge that change is happening faster than ever before.

As a Chief Executive who led during the pandemic, there were a lot of unknowns for all of us and leading teams through this was stressful. Leaders often describe that leadership is like a hamster wheel. In this situation, it felt the hamster wheel was set on high speed and put outside during a hurricane.

Change is constant but during the pandemic, it hit us like giant waves from almost every direction, every day! From implementing remote work, expanding technological support, maintaining engagement with customers and employees, ensuring productivity continued, and establishing new processes and procedures. What was supposed to be 2 weeks turned into 2.5 years and completely altered the operations of a typical workplace. With all the demands, leaders barely had time to breathe. This negatively impacted leaders’ mental and physical health as well as family relationships.

Additionally, change is still happening faster than ever, from technology to recruitment to employee turnover. AI is everywhere and figuring out how, when, where, and if it should be used is a moving target. As traditional educational training is giving way to more certification-based training, recruitment and hiring has become even more challenging to find and select the best workforce. And to say that sustaining and retaining that workforce is difficult is an understatement. What works today might not work tomorrow, next week, or next month.

Many senior leaders in the C-suite already summoned all the agility and adaptability they did not know they had to lead during and since the pandemic, and they are exhausted. Leaders expected routines and processes to quickly return to the “normal” pre pandemic operations, but that has not happened. C suite leaders are now faced with navigating the “new normal” as employees redefined personal and professional success.

Leaders are reeling, wondering what is around the next corner, and assessing their options.

Employees were not the only ones who redefined personal and professional success during this window of rapid change, some leaders did as well. I was one of them. I chose to alter my course. I had several opportunities for other chief executive and senior roles, but I wanted to experience life on my own terms. With more than 30 years’ experience, I have a great deal to offer. I believe I can do that on a different path, and still make an impact.

Have I seen more of my senior colleagues’ pivot? Yes, but the whys are as varied as the differences in our DNA. In many cases, burnout and exhaustion became the outward demonstration of the leaders’ internal struggles. Leaders felt drained. The cumulative effects of uncertainty, ever present change, navigating constant support of teams and customers, and the continued expectations to deliver results were layered on top of their core responsibilities.

Like me, these leaders still want to impact and make a difference. Yet, in most situations, organizations do not provide pathways for alternative opportunities comparable to sabbaticals in academia or leaves of absence. So, these leaders look for opportunities to continue to add value in various capacities in a wide range of organizations. These have less responsibility and less pay.

A handful of companies worked creatively with the leaders to provide opportunities for transition which included advisory positions to mentor the next group of leaders. In these cases, the organization pursued diverse approaches to leadership, while providing support and encouragement for the new leaders. This enables senior leaders to share their knowledge, while no longer having the responsibility and the stress. This benefits the company by easing the transition for employees, customers, and stakeholders. And provides a bit of a safety net, just in case.

In my opinion, this can be a smart move, if it is done correctly with the right circumstances. There must be a clear delineation of duties and who is the senior leader for employees, customers, and stakeholders.

Finally, many C suite leaders know that sooner or later, they must leave. The question then arises, will it be on your terms or someone else’s?  Most C suite leaders, regardless of organization, know that there is always a chance they will be pushed out. It is better to control the decision than have it forced on you. So, why not prepare and ensure you are comfortable, and make the change on your terms. Transition is hard and tricky, and it can feel scary, liberating, and exciting.

That said, stepping out of a senior leader role also means understanding that you are no longer the final decision maker. That can be more difficult if you have not thought about it. I think this is the reason many leaders take a step into lesser roles; it gives them the opportunity and time to transition.
And sometimes, leaders discover they just needed a respite and want to return to senior leadership, while others carve new pathways and experiences. Regardless of their choice, these leaders are still leading in some capacity, but on their own terms.

I think the changes occurring in senior leadership mirror that of what is happening with employees. The pandemic showed us that life is about living. Work is a part of life, and work can enhance life, but work should not dominate our lives. This perspective was slowly developing through the 2000’s, the pandemic exacerbated it.

This is a significant departure from previous generations’ viewpoints. For my generation, my parents’ and grandparents’ generation, work was life, it defined us. That has and will continue to change as new generations step into leadership positions. Organizations must adjust and adapt to retain strong effective leaders.

While money will always be important, power, perks, and competition are no longer the primary drivers. Leaders and employees of today and tomorrow are driven by purpose and impact. They want to matter and make a difference.