Organizations Are Rethinking Executive Benefits to Bolster Top Talent

Eighty-one percent of American organizations recently surveyed by NFP, an Aon company and benefits consulting firm, reported that they can’t afford to lose their top talent, yet 49% haven’t implemented any executive benefits strategies to manage the leadership transitions ahead.

It’s just one of the findings highlighted in the firm’s 2026 U.S. Executive Compensation and Benefits Trend Report that suggest organizations should align executive benefits with business objectives and evolving key employee needs to be better positioned to manage change.

Access a bonus Workspan Daily Plus+ article on this subject:

• The Nonqualified Option: Solving SECURE 2.0’s $150K Roth Rule 

The report, which included responses from 273 executive benefits decision makers across industries and organizational levels, also found:

• Changes under the SECURE 2.0 Act are prompting more organizations to revisit how they support highly compensated employees, with more employers turning to nonqualified deferred compensation (NQDC) plans to preserve pretax deferral opportunities.
• As organizations struggle to meet employees’ individual needs, 20% of the respondents said their executive benefits strategy aren’t flexible enough, leading 23% to prioritize increased education around NQDC plans over the next 12 to 18 months.
• 94% of organizations are concerned about the economy and 79% cited cybersecurity threats, pushing 80% to maintain current executive benefits offerings and 59% to leave compensation unchanged, even as delaying action becomes its own risk.

In an interview with Workspan Daily (WD), Tony Greene, the president of NFP’s executive benefits division, dived deeper into the research and shared how organizations are rethinking executive benefits in workforce transitions.

Tony Greene, president, NFP executive benefits division

WD: What are some key takeaways you can share from this year’s report? How does it compare to previous years?

Greene: Three things stand out. First, executive benefits are playing a larger role in succession planning as employers prepare for the “silver tsunami” and the loss of experienced leaders. Second, retention remains a priority despite economic uncertainty. Third, employers are taking a closer look at whether their programs are understood, valued and delivering the intended results.

Compared to prior years, we’re seeing leading employers connect executive benefits much more strategically to succession planning and long-term business goals rather than treating them as a standalone benefit.

WD: How do current economic conditions continue to play a part in executive compensation and benefits?

Greene: It’s certainly driving caution among organizations. [Economic concern] is understandable, but it also creates a good opportunity to ask whether current programs are delivering the results the organization needs.

WD: Based on the data, what areas in executive compensation and benefits saw improvement?

Greene: Satisfaction with deferred compensation plans has climbed steadily over the past three years, which tells me the extra effort employers are putting into personalization and communication is working. There’s often a gap between the plan on paper and how employees are actually utilizing the benefit. Luckily, we’re seeing that gap close in certain areas. We’re also seeing more employers lean into NQDC plans to preserve pretax deferral opportunities as SECURE Act 2.0 changes take effect.

WD: What areas still need work?

Greene: Flexibility and education remain the biggest opportunity for employers. Twenty percent of organizations reported that their executive benefits strategy isn’t flexible enough, and only 28% believe participants completely understand their benefits.

One thing we’ve learned is that offering a benefit and creating value are two very different things.

WD: How might this report help employers better evaluate and improve their executive compensation and benefits offerings?

Greene: This data gives employers a mirror and a benchmark to ask questions, even if they are uncomfortable. It should prompt a candid internal conversation:

• Are the plan and the benefits working the way they were intended to?
• Do employees understand and value them?
• Would top performers say the same thing?

Nearly half of the organizations surveyed still haven’t put a formal leadership continuity strategy in place, despite most recognizing the need. By turning the conversation into something tangible, employers can better evaluate their executive benefits and move the needle in a meaningful way for their workforce.

WD: Based on the findings in this year’s report, what are some next steps for organizations to consider?

Greene: Organizations should map out who they genuinely can’t afford to lose and what happens to the business if that person leaves sooner than planned. From there, build a continuity plan around those individuals rather than defaulting to a generic product. Personalized education should be a central part of the rollout because your employees at different career and life stages want something different from those in their thirties.

This work should also happen well ahead of a departure announcement rather than in reaction to one. When employers get ahead of leadership transitions and pair flexibility with participant understanding, the business and overall workforce will be best positioned for the future while making the most out of their benefits.

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Benefits
• Executive Compensation
• Finance and Budgeting