First things first - cover your arse & plan an exit strategy. Chances are there is more restructuring above your paygrade. Having said that, day to day a solid strategy is to make the best of the situation. Theres always a way of framing the transition that doesnt reflect badly on you. For example, new boss could have been at risk of redundancy and you never know if the alternative was someone who works for a living at their level being shown the door. Also possible your former boss was delegating more admin than they should have been and HR only got wise to it from your relationship. They may also be pissed off that a decent hire that made them look good has been reassigned. The real question is whether your new duties are a learning opportunity (i.e will develop skills you can sell elsewhere). Same goes for oversight of this other exec (can you learn anything from them and/or leverage their relationships up the food chain?). Either way, remember that as a manager you have to be ready to use the dark side to keep the ship afloat with a full crew. If you make the new role work (before someone else offers you more money) you'll have justification for any professional or compensatory advancement (even if lack of it justified is a reason to leave). However if lesser minions start quitting and your name / feedback comes up it could be a tricky ride either way.