A new study from CSC shows that financial services firms are more and more challenged by the increasing complexity of executive compensation programs. In fact, almost nine out of ten senior leaders say their internal technology systems are no longer able to keep up with the growing demands.
The research results are part of CSC’s latest publication, The Future of Reward in Financial Services: Executive Compensation in 2026. It involved a survey of 300 senior HR, rewards, and compensation executives from North America, Europe, and Asia-Pacific. Respondents came from sectors like asset management, private markets, insurance, and investment banking.
The study found that 89% of those surveyed suspected their in-house technology was not able to keep up with the changing executive compensation needs. At the same time, 86% shared that managing compensation and long-term incentive (LTI) programs has, in fact, become quite complex as companies increase the number of participants and handle more regulatory obligations.
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There has been a large increase in the number of people receiving incentive plans, with 80% of companies admitting that more employees have become involved in compensation programs during the last three years. Since companies are stretching their incentive programs beyond just senior executives for the purposes of retention and rewarding performance, they are now facing a much more challenging environment on administration. At the same time, half of the organizations surveyed are preparing for upcoming transparency reviews and regulatory consultations, increasing pressure on compliance and reporting processes.
“Participation in LTI schemes is widening, and expectations around fairness and transparency are increasing,” said Shane Hugill. “While that’s positive from a talent and performance perspective, it also means firms are dealing with more moving parts. Many are managing programs across multiple providers and jurisdictions, which can make it harder to keep data consistent and processes under control.”
Data management remains another major concern. Two-thirds of respondents cited reliance on multiple service providers as a key obstacle to maintaining accurate and consistent compensation data, while 64% pointed to the challenges of operating across different regulatory environments. These factors can increase the risk of compliance issues and reporting inaccuracies.
As a result, many firms are turning to external partners and specialized technologies for support. More than 77% of respondents reported using multiple outsourcing providers to administer compensation plans across regions.
“As the labor market becomes increasingly competitive, firms have to think more creatively about how they reward and retain top talent,” added Jennifer Kenton, chief commercial officer at CSC. “That can make executive compensation harder to manage, and that’s why firms need a trusted partner with proven expertise in administration and execution for all incentive plans.”
The findings underscore the growing need for integrated compensation management solutions as organizations seek greater visibility, efficiency, and control over increasingly complex reward programs.
