I tried the search terms "fbi special agent in charge transfer" (without quotes) and found a number of results, so the answer to whether they can be transferred is yes. And I'm not sure but I think working under another SAC would be a demotion, they would most likely remain SAC or take some sort of promotion when transferring.
Sometimes this kind of transfer is to head up a special project. If so, he would remain an SAC and be in charge of whatever's happening, but he would not be in charge of the Palo Alto office in general, just of his specific special project and the staff members or agents attached to that. So technically he's under the other SAC in matters outside his own project, but above them in matters related to his project.
If he's just being transferred there, there's only one SAC in that position and, as the poster above me says, he may get a promotion, or they're dividing SAC responsibilities for some reason (like more staff working out of that office). In this case, he would not be working under the other SAC.
It seems like a better question might be "Is 'Special Agent in Charge' a rank (which attaches to the person) or a job title (lose the job, lose the title)?
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If he's just being transferred there, there's only one SAC in that position and, as the poster above me says, he may get a promotion, or they're dividing SAC responsibilities for some reason (like more staff working out of that office). In this case, he would not be working under the other SAC.
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