In 2025, a notable shift is occurring in how companies approach executive compensation, as nearly one-quarter of businesses reported adding new executive benefits—significantly higher than the 20-year average of 8%. This data emerges from Goldman Sachs Ayco’s 2025 Executive Benefits Survey, which highlights a broader trend among corporate leaders to invest in non-monetary benefits aimed at attracting and retaining top executive talent amid a competitive labour market and rising executive turnover intentions.

According to the survey, 24% of companies introduced new benefit offerings in 2025, while 20% of organisations are considering adding additional executive benefits over the next two years. Conversely, only 5% of respondents reported plans to eliminate benefits, indicating a clear corporate commitment to enhancing executive compensation packages beyond base salaries and bonuses. The survey examined a range of benefits that enhance quality of life and executive well-being, amid growing concerns that 56% of executives are likely to leave their current roles within two years.

Jonathan Barber, Goldman Sachs Ayco’s head of compensation and benefits solutions, explained that executive benefits serve a dual purpose: they are both a reward, marking a certain status within the organisation, and practical support that allows executives to focus more fully on their corporate duties. This dual role underlines why many companies are expanding their offerings despite economic uncertainties and regulatory scrutiny.

One of the most significant developments in 2025 is the rise of executive security benefits, driven largely by heightened concerns over violence and threats against corporate leaders. For CEOs, provision of personal security and cybersecurity benefits increased by 10 and 12 percentage points respectively, relative to 2023. Home security benefits surged to their highest level since 2003, with 27% of CEOs and 11% of senior executives receiving such protection. Typical security measures include security personnel accompanying executives during business travel or public engagements, secure company vehicles with armed drivers, and home security assessments.

Beyond security, companies most frequently reported adding financial counselling services (41%), executive physical exams (18%), which encompass comprehensive preventive health checks, and tax preparation services (11%). These benefits are characterised in the survey as "physical and fiscal" and reflect an increasing focus on both the health and financial well-being of executives. They also align with the types of benefits companies are likely to justify to shareholders as enhancing executive effectiveness and efficiency.

Despite additions, some traditional perks are being phased out. Among benefits eliminated over the past two years, company aircraft for personal use dropped notably, alongside reductions in executive life insurance enrolment for new participants and executive physical exams. These findings highlight a gradual move away from “old-time status benefits” such as country club memberships and lunch clubs, which Barber noted "struggle" to justify their value in today’s business environment.

Air travel benefits also saw changes; while personal use of company aircraft declined among senior executives from 22% to 17%, the offering remains robust for CEOs at 47%, largely justified by security and efficiency needs. First-class air travel increased modestly to 32% for both CEOs and senior executives, reflecting a nuanced recalibration of transportation perks in line with executive priorities and corporate risk assessments.

Historically, non-financial executive benefits declined markedly between 2005 and 2011, influenced by regulatory changes including stricter Securities and Exchange Commission disclosure rules and the enactment of Dodd-Frank’s say-on-pay provisions. However, the recent resurgence, reaching or exceeding early 2000s levels, is driven by benefits perceived as legitimate business expenses that support mental and physical health, security, fiscal management, and ultimately, executive focus.

The reported tripling of cybersecurity benefits since 2021 and the recent 10% rise in personal security for CEOs underscore how new risk factors are shaping executive benefits landscapes. Moreover, companies are extending these offerings progressively to a broader range of executives, reflecting a recognition that competitive talent retention strategies must operate throughout the organisational hierarchy, not just at the CEO level.

The survey, conducted from April to June 2025 with input from 291 compensation and benefits professionals, paints a comprehensive picture of how executive benefits are evolving. It shows that companies are balancing the need to retain key talent with shareholder expectations by emphasizing benefits that enhance executive well-being and security, signalling a sophisticated approach to executive compensation in an increasingly complex environment.

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Source: Noah Wire Services