Consistent, decades-long growth is no small feat. It requires both intense strategic planning and consistency in execution, both of which are a direct outcome of strong leadership. Without resilient pipelines to source quality executives who can carry through on the ambitions of their predecessors, banks and financial institutions inevitably stall out.

Unfortunately, right now executive leadership is anything but stable. 2025 showed the highest number of CEO exits since 2002, and turnover at public companies is at a three-year high. From what we’ve seen in the industry, banking and finance are no exception to this reality.

But as unstable macroeconomic conditions persist and disruption hits the sector from all sides, banking and finance institutions need strong leadership. These leaders are essential to both adapting plans to changing conditions, and ensuring personnel are equipped and supported with the tools and skills they need to remain competitive. As such, building resilient leadership pipelines is key to long-term, sustained growth.

Key Takeaways

• Without a resilient leadership pipeline, even well-built growth plans can stall overnight.
• The volatility of 2026 makes succession planning non-negotiable. Organizations hiring only for today’s needs risk falling behind as market demands shift.
• Resilient pipelines aren’t built in a crisis. They come from early, strategic groundwork.

Why Leadership Pipelines Are Harder to Build in 2026

Building leadership pipelines, and succession planning more broadly, is and has been a challenge, no matter the size of the institution in question. But the unpredictability of the past few years has made it more difficult to plan for the future, and executive search is no exception to this rule.

Given the volatility of the market (which, while easing up now, is still higher than previous years), a lack of competent leadership can result in a failure to adapt to changing conditions, which exposes businesses to risk and hinders their ability to seize new opportunities. This, in turn, can have a negative impact on competitiveness and shareholder value, both short- and long-term.

Where Organizations Fall Short When Building Leadership Pipelines

If you’re struggling to find or retain the leaders needed to propel future growth, you’re not alone. This is a common challenge not only in banking and finance, but across industries; and it’s often the result of deeper, more persistent issues within the organization.

The most obvious is the complete lack of leadership pipelines; this is rare, but it does happen. More common is when an organization claims to have a pipeline in place, but it’s really just a generic list of qualifications, and maybe some names. These organizations pay lip service to succession planning but for one reason or another aren’t putting in the hard work to make it happen.

Another challenge we see is when organizations plan for now, and not for the future. This is better than having no plan, but given the rate at which the market is transforming, you could end up hiring for outdated skill sets. One obvious example right now is the uptick in M&A activity among banks and financial institutions. If you know an acquisition is coming at some point, it’s important to hire post-merger integration skills vs. having to re-hire after the deal goes through.

How to Build Resilient Leadership Pipelines

Ultimately, the secret to resilient leadership pipelines is to have the groundwork laid before an executive announces their resignation or retirement. This can take a number of forms:

• Engaging an executive search partner early in the process. We can help you avoid mistakes that can come back to haunt you later.
• Building relationships with talent before they’re in the job market. This helps you engage with top performers who can seamlessly transition from one role to another.
• Developing your team internally. While there are a range of benefits you can get from bringing on an external hire (in fact, we encourage it), they will need quality people to execute their plans.

Here’s the sequence of events we recommend pursuing as you navigate this process.

1. Start with your firm’s “load-bearing walls”

Financial institutions have multiple areas where the risk of single-point-of-failure is high: P&L, compliance, liquidity, growth, etc. When looking for executive leaders, focus your initial efforts on the areas where a sudden departure is most likely to create a crisis. An executive search partner with deep industry expertise can help you identify these areas and prioritize your search efforts accordingly.

2. Get detailed about what you’re looking for

Although it’s tempting, don’t just go into ChatGPT and ask for a generic list of traits to look for a new chief lending officer or VP of finance. That’s basically like asking a junior banker to make the decision for you, and it carries the same risk of failure.

Instead, pull together all the expertise at your disposal (both in-house and from strategic partners) to come up with a comprehensive list of strategic traits needed for an executive to achieve your core business outcomes.

3. Stay up to date with real-time research

With a market that’s in flux as much as this one, compensation, in-demand skills, and competitive standards (i.e., what other banks are offering) are always changing. If you want to attract and land top executive talent, there’s a lot you need to know. Working with a partner that has their ear to the ground can help with that.

Download our 2026 Salary Guide for the latest insights into compensation and which roles are in the highest demand this year.

4. Hire for retention

One mistake many organizations make when replacing outgoing leaders is focusing on immediate needs versus long-term success in the role. While there’s certainly an urgency to filling critical leadership roles, you don’t want to have to repeat the process in two or three years and spend six- or seven-figures of replacement costs.

Choosing an executive search firm with a strong track record of retention; AJ Consultants, for example, prides ourselves on the fact that 87% of the executives we’ve placed are still in those roles to this day.

Final Thoughts on Resilient Leadership Pipelines

Long-term business success rests on quality leadership. This has always been true, but as the market continues its trend of relative volatility, it’s even more critical. The longer leadership gaps persist in your organization, the less resilient your organization will be. You’ll incur more risk and hurt profitability.

Even if your next retirement or resignation is years in the future, the time to start putting the pieces into place so that when it happens, you’re prepared.

So whether you have an immediate or long-term need, get in touch with AJ Consultants and we’ll help you put together a plan to keep your benches filled and business competitive now and in the future.