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I would leave. You are still at a level when you should still be honing your craft. Managerial skills is a good thing, but growing your own body of work is more important right now.
I had a similar situation but I was still mid-level. I was at a global agency but in a smaller regional office. They fired my CD (who was an older burnout who checked out years before and was just collecting paychecks) a week before a shoot so I was able to play as many cards as possible in a short window, using the relationships I made with people on the account side to get work done that never would have been made had I not had that creative control. Now, it was a terrible situation and I think it set me back as far as developing as a writer, but I have 2 or 3 major book pieces and a handful of awards thanks to being thrown to the wolves.
Same exact boat. I’m trying to leverage that when applying places.... we’ll see where it gets us.
Can I use this experience as a badge during interviews? And as a reason for looking elsewhere? Or does it come off as arrogant because it’s what’s expected of you when the team needs a leader and the company won’t hire one?
Nah, take that credit. Put it on your resume and speak to it in interviews. It was an opportunity that you were needed to step in, and subsequently learned a lot from.
It depends how long OP has been a Sr. CW. If your craft is suitably honed, they may be testing you out for ACD/CD. They may also just be cheap. If you're doing well and it goes on longer than a few months, maybe point out that you've been doing the CD thing successfully, and it's time to promote you or hire a CD. Then you'll have your answer on whether or not you need to jump ship.