Q&A: Why Evolving Your Executive Benefits Strategy Is a Necessity

Amid economic uncertainty and demographic changes, many organizations surveyed for a 2025 U.S. Executive Compensation and Benefits Trend Report said they are reevaluating their approach to these benefits.

Conducted by NFP, an Aon company and benefits consulting firm, the data was collected from 260 executive benefits decision-makers across various industries and organizational levels.

The survey discussed:

• The increasing value of nonqualified deferred compensation plans (NQDCPs). 
• The shift toward customized executive benefit packages. 
• The challenges organizations face in addressing the retirement readiness of senior leaders.  

In an interview with Workspan Daily (WD), Tony Greene, the president of NFP’s executive benefits division, provided a deeper glimpse into the research and shared how organizations and their total rewards professionals can design executive benefit packages to better serve leadership and help strengthen the business.

“Executives who understand their benefits are 2.3 times more likely to stay committed to their company. Yet, only 29% really [comprehend] what they have.” — Tony Greene, president of NFP’s executive benefits division

WD: What are some key findings you can share from the report?

Greene: Our survey revealed that 97% of executive benefits decision-makers are concerned about the economy. Across the board, this broader economic uncertainty is impacting how employers rebalance their approach toward customized executive compensation solutions, as 71% of respondents recognize that offering executive benefits is important for long-term retention but must watch the bottom line as well.

Another notable finding is that 85% of respondents say that they can’t afford to lose top talent. The report also highlights a startling comprehension gap: fewer than 1 in 3 executives fully understand their benefits.

WD: How specifically is the economy impacting executive compensation and benefits?

Greene: It’s driving everything right now for our clients. In our survey, 1 in 5 respondents said concerns about economic uncertainty will lead them to alter the amount or type of executive benefits they offer. Although retention remains a top priority, financial discipline has regained equal footing as a strategic consideration. The post-pandemic generosity that once defined executive compensation packages is giving way to a more measured, sustainable model as employers focus on financial prudence, flexibility and long-term value.

WD: The report indicates retaining executive talent is a challenge. How can organizations close that talent gap?

Greene: While many Baby Boomers are leaving the workforce, nearly 3 in 5 executives (57%) are working longer than planned. Yet, this extended tenure doesn’t always translate to better retirement preparation. The report shows that organizations can close the talent gap by adopting forward-looking strategies, most notably leveraging NQDCPs for retention. These plans are being used not just at the C-suite level but also among senior managers. They offer flexibility and long-term financial benefits, helping organizations retain key contributors and support their retirement readiness. Additionally, companies that provide clear benefits education and personalized plan design see higher engagement and loyalty among participants, further narrowing the talent gap.

WD: Why is there an increased value of NQDCPs, and what are the top reasons for offering them?

Greene: For many companies, NQDCPs are the cornerstone of a powerful executive benefits strategy. Most employers offer NQDCPs mainly for retention (68%), staying competitive with peers (53%) and helping participants save for retirement (52%). With inflation concerns and tax worries, executives and top performers want these plans more than ever. Notably, in financial services, 90% say these plans actually work for retirement prep. They cost companies less than salary increases but give key employees real value.

WD: How can organizations help executives better understand their benefits?

Greene: This is huge — executives who understand their benefits are 2.3 times more likely to stay committed to their company. Yet, only 29% really [comprehend] what they have. The fix isn’t complicated: get them time with financial advisors (75% of engaged executives had these meetings), explain things eloquently in a decipherable way and walk them through their specific plans.

When there’s a lack of clarity, the impact of those benefits diminishes. Fostering financial literacy, offering access to financial professionals, providing plan walk-throughs and simplifying complex language are all essential to closing the gap, strengthening engagement and deepening the loyalty of top talent.

"Most executives don’t understand what they have. The companies that fix this communication problem will win the talent war."

WD: What does the research reveal about the future of executive compensation and benefits?

Greene: This report underscored what we’ve seen for a long time: [Organizations are] done with one-size-fits-all approach to benefits strategies. Employers are getting smarter; they want benefits that actually work, not just expensive perks. NQDCPs will matter even more, not just for keeping people but for succession planning. And, here’s an opportunity: Most executives don’t understand what they have. The companies that fix this communication problem will win the talent war.

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

Greene: Three things matter most. First, stop guessing what executives and key employees want — survey them and customize benefits offerings accordingly. Second, make NQDCPs easier to understand and use for plan participants. Third, fix the understanding problem. Only 22% offer advisory help after issuing deferred comp payouts. That’s a missed opportunity. Get participants the help they need to understand and use their benefits. Do these three things and you’ll stand out in the talent market as an employer of choice.

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
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