The managerial plateau is generally assumed to be problematic for orga
nizations, generated by motives for advancement outstripping opportuni
ties for upward mobility. However, previous research has used unitary
criteria for plateauing of untested validity, and failed to examine th
e phenomenon contextually by taking account of internal labor market c
haracteristics. Measurement of agegrading was used to address these pr
oblems. Drawing upon a sample of 4000 managers al various levels of a
large corporation the present study had three objectives. First, in se
tting out to evaluate the characteristics of the internal labor market
, results showed patterns consistent with a partial ''tournament'' car
eer system, but also that different career systems may coexist within
the single organization, through advancement criteria differing across
company levels. Second, in aiming to assess the relationships between
conventional plateau criteria and agegrading, agegrading was found to
covary with the more widely used criteria, while avoiding some of the
ir difficulties. Third, looking at the consequences for managers' care
er attitudes and adjustment, it was found that off-line slow (i.e., pl
ateaued) managers did not exhibit lowered career satisfaction, adjustm
ent, or mobility aspirations, despite the fact that they have lower ex
pectations of promotional and non-promotional job moves. At the same t
ime some off-line fast (i.e., high fliers) managers did have higher sa
tisfactions and expectations. Results are interpreted in terms of coun
tervailing satisfactions, exit costs, and loyalty. It is also noted th
at these features can conceal from companies the shortcomings of their
career development systems, and lead to the neglect of constructive a
lternatives to promotion for plateaued staff.