Senior leaders across top consulting firms are increasingly leaving for smaller firms and startups, marking a notable shift in the industry. Once seen as the pinnacle of corporate success, reaching partner at a Big Four firm is no longer the only path to influence, innovation, and growth. Now, many executives are seeking faster decision-making, greater ownership, and more direct impact—driven by the rapid evolution of AI and changing market dynamics. Analyst James Ransome of Patrick Morgan, a firm focused on senior leadership hiring, described this movement as an "exodus" from traditional consulting powerhouses. Midsize firms like Alvarez & Marsal, Teneo, FTI Consulting, and Annex Partners are attracting high-caliber talent previously loyal to the Big Four and MBB (McKinsey, BCG, Bain) due to private equity backing and agile business models. High-profile departures underscore the trend. In 2024, FTI Consulting hired Jeff Wray and Brian Salsberg, former global leader and head of M&A at EY-Parthenon. Steve Varley, former UK chair of EY, and Marissa Thomas, former COO at PwC, launched their own firm, Unity Advisory. These moves reflect a broader desire among senior leaders to shape their own destinies rather than navigate slow-moving hierarchies. The shift is also fueled by a shrinking consulting market. Post-pandemic demand has declined, making it harder for partners to generate revenue. At the same time, firms overhired during the boom, leading to oversaturation and tighter promotion criteria. As a result, many top performers are facing stagnant compensation or even redundancy—prompting them to seek more rewarding opportunities. Smaller firms are now able to offer competitive pay, equity stakes, and real ownership. Casey Foss, chief commercial officer at West Monroe, noted a 25% rise in inbound interest from Big Four professionals in the past year—many reaching out proactively rather than in response to recruitment efforts. AI is accelerating the transformation. Executives like Gert De Geyter, former AI lead at Deloitte, left for Teragonia, an AI-powered startup, to build new teams in a faster-moving environment. “Startups can move in seconds,” he said, contrasting that with the lengthy approval processes in legacy firms. Others, like Sri Sripada, who left Accenture after 18 years, were drawn by private equity-backed models that give employees real “skin in the game.” Nargis Yunis, who became a partner at EY in 2019, found herself “at the bottom of another ladder” and left for Forvis Mazars, where she now leads asset management—a role she believes would have taken a decade to achieve at a Big Four firm. While financial compensation remains important, many cite personal fulfillment, influence, and the chance to build something new as key motivators. As Tom Rodenhauser of Kennedy Intelligence noted, these leaders are essentially placing bets on which firms will lead the next wave of innovation. For the Big Four, the challenge is clear. They must adapt by embracing AI, upskilling internally, and rethinking talent strategies. Some are exploring regional leadership models and offshore capabilities to boost agility. But as Ransome pointed out, changing the DNA of such large, bureaucratic organizations is difficult. The real question isn’t just whether these firms can retain talent—but whether they can evolve fast enough to remain relevant in a market where ambition and speed are now the new currency.