About the paper
The paper is a mixed-methods report on how C-suite leaders are approaching uncertainty, workforce change, AI, hybrid work, well-being, social impact, and DEI/ESG positioning in 2026.
Padilla says it combines an online survey of 100 C-suite executives and 1,000 employed adults, more than 60 interviews with C-suite leaders analysed using both AI and human interpretation, and desk research conducted in the latter half of 2025; the geographic scope appears U.S.-focused, but the respondent geography is not clearly specified in the report.
Length: 10 pages
More information / download:
https://padillaco.com/c-suite-perspectives-2026
Core Insights
1. What is the report’s central argument about the 2026 C-suite mindset?
The core argument is that senior leaders are no longer waiting for uncertainty to pass. Instead, they are treating instability as a permanent condition and responding by trying to move faster while keeping room to pivot. The report frames this as a shift from earlier stages of disruption management toward a new posture it calls “fast + flexible.” It explicitly contrasts previous years’ mindsets — “conflicted” in 2023, “fatigue + focus” in 2024, and “moving ahead” in 2025 — with a 2026 mood defined by urgency, adaptability and momentum.
That shift is not presented as optimism in the simple sense. The report says leaders want more stability, but do not expect to get it. In other words, their confidence is pragmatic rather than serene. They are trying to make decisions under pressure, operate through volatility, and show progress despite persistent ambiguity. This is especially visible in the report’s emphasis on inflation, policy change, regulation, AI and innovation as rising leadership challenges.
For communicators, the deeper meaning is that organisations are entering a period where flexibility itself becomes a strategic capability. The report suggests that leadership credibility now depends less on promising certainty and more on showing agility, direction and steadiness amid ongoing turbulence.
2. Where does the report find the biggest gaps between leaders and employees?
The report’s most important pattern is a recurring perception gap between the C-suite and employees. It argues that leaders and employees do not experience organisational reality in the same way, and that this divergence is now showing up across several high-stakes issues. The report even describes this as a kind of “K-shape” divide in viewpoints between leadership and employees.
The clearest gap concerns change readiness. According to the report, 67% of leaders believe employees are “fully” or “very” well equipped to embrace and support change initiatives, while only 43% of employees agree. That is a substantial disconnect, especially given that the changes in question include AI, mergers and acquisitions, and leadership transitions. The report interprets this as evidence that some leaders may be overestimating workforce readiness.
A second gap concerns well-being. Leaders say their own well-being has improved and are also relatively upbeat about employee well-being, with 48% believing employee well-being has improved. Only 25% of employees say the same. Importantly, when people do report improvements, the report says these are tied more to personal boundaries, health and self-care than to better workplace conditions or stronger business performance. That weakens any claim that organisations themselves have solved the well-being issue.
A third gap appears around AI. The report says 88% of leaders describe their organisations as adopting AI aggressively or selectively, yet only 43% of employees view AI as a net benefit to their job. The report is careful here: it does not present employees as outright rejecting AI, but rather as uncertain about its value and impact. That distinction matters, because uncertainty can still become resistance if not addressed.
Taken together, these gaps support one of the report’s strongest underlying messages: organisational change is not just about strategic decisions at the top, but about whether employees understand, trust and can absorb those decisions.
3. What does the study say about the leadership qualities now seen as most necessary?
The report argues that leadership today requires an unusual combination of traditional authority and human openness. It says the three most important “classic” leadership qualities are credibility, vision and authenticity, which together create what the report calls a paradoxical need to show both certainty and vulnerability.
What has risen most sharply, however, are qualities associated with toughness and steadiness under pressure. On page 4, the visual “Qualities on the Rise” shows the biggest year-over-year increases for fearlessness (+18), stoicism (+14), vision (+13), certainty (+13), authenticity (+7) and inclusivity (+7). That pattern is revealing. It suggests leaders feel pressure to be decisive, resilient and unflinching, but also to remain credible through honesty and attentive listening.
The report does not celebrate hard-edged leadership on its own. It explicitly warns that while leaders may be leaning into traditional executive traits to power through uncertainty, employees may need more empathy, transparency and humanity in order to come along with them. So the model of leadership implied here is not pure command-and-control. It is stronger than that in one sense, but softer than that in another: leaders must project direction without pretending to know everything.
This has direct communication implications. The report says employees and leaders are broadly aligned on which traits matter, and that communicators can use this alignment to support strategy. That means internal communication should not just explain decisions; it should also help leaders perform the right balance of realism, openness and conviction.
4. How does the report interpret current organisational flashpoints such as hybrid work, AI, social issues, and DEI/ESG?
The report treats these issues not as isolated debates but as examples of a wider strategic tension: leaders want to keep adapting quickly, but employees do not always share their assumptions or pace. Hybrid work is a good example. The report says 79% of leaders expect their organisations to maintain or move toward hybrid models, but 21% are becoming stricter about in-office policies. Its interpretation is that organisations have settled into hybrid work operationally, but not psychologically or culturally. In other words, hybrid remains workable, but unresolved.
AI is presented as having crossed an inflection point. The report says it is no longer seen by the C-suite as experimental, but as core infrastructure. Yet employee uncertainty remains significant. The implication the report draws is not merely that firms need AI tools, but that they need a clear narrative about AI’s intent, value and expectations. It explicitly recommends combining change management with thought leadership around AI. That is a notable framing, because it positions communication not as a support function after adoption, but as part of adoption itself.
On social issues, the report suggests leaders are more willing to speak out than before, but selectively and mainly when issues are directly relevant to the business. It says 54% of leaders believe it is important to speak out on relevant external social issues, while 26% of employees think their companies are avoiding taking a stand at all costs. The report’s explanation is that companies may now be communicating their positions more internally or to directly affected groups, rather than through broad public declarations.
On DEI and ESG, the report argues that language is changing more than underlying intent. It says these commitments still rank low as formal C-suite priorities, but the benefits associated with them remain valued. On page 7, the report says organisations are using alternative terms such as belonging, inclusion, fairness, representation and culture instead of DEI, while ESG is increasingly treated as “good business hygiene” focused on practical actions such as emissions reductions, efficiency and sustainable sourcing. The key idea is not abandonment, but repositioning in more business-linked language.
5. What are the main implications for communicators and organisations?
The report’s most consistent conclusion is that communication now has to do more than inform. It has to reduce gaps in perception, build trust in leadership intent, and help organisations carry people through instability. Nearly every section ends with an implication that points back to communication as a strategic enabler rather than a downstream messaging function.
First, communicators need to treat change readiness as a live organisational risk. Since leaders appear more confident than employees about workforce preparedness, internal communication should not assume readiness; it has to build it. That means clearer explanations, more deliberate engagement, and more effort to create what the report calls change-resilient cultures.
Second, communicators have an especially important role in AI. The report makes clear that executive enthusiasm alone is not enough. Employees need a believable account of why AI is being used, where it adds value, what expectations apply, and how risks are being managed. In effect, AI adoption requires narrative leadership as much as technical implementation.
Third, the report suggests that hybrid work, well-being, and social-impact positions all require stronger internal sense-making. Tightening office expectations without buy-in may damage retention. Assuming employee well-being has improved may mask unresolved strain. Taking stands selectively without explaining the “why, when and how” may create internal scepticism. In all three cases, silence or vague messaging widens the gap between leadership intent and employee interpretation.
Finally, the broader strategic implication is that communicators should help leaders embody the report’s central formula: move fast, but not blindly; stay flexible, but not vague; build momentum, but through alignment, clarity and trust. That is the real communication agenda running through the entire study.




