By DeLynn Senna, Senior District President, Executive Search Global Operations, Robert Half
The concept of total rewards isn’t new, but it has steadily evolved since it first emerged in the 1990s. That is when many businesses began moving beyond traditional compensation packages—salary, bonuses, healthcare and retirement plans—to provide more comprehensive benefits and perks such as expanded paid time off, profit sharing, flexible work schedules and career development opportunities.
A motivating factor for the shift toward offering a more compelling blend of financial and nonfinancial rewards was the need to compete more effectively for skilled talent. Much like today’s labor market, the 1990s saw a shortage of skilled candidates due to factors such as globalization, rapid technological change and low unemployment. Forward-thinking companies also recognized the need to rethink human resources (HR) and compensation and benefits strategies to better reflect employees’ priorities, values and career aspirations, particularly among younger generations.
Fast-forward to today, and total compensation strategies have advanced even further, becoming more holistic, personalized and strategically aligned with business priorities, particularly at the executive level. In addition to competitive base pay, many companies now offer long-term incentives, well-being programs, equity and wealth-building opportunities, flexible work arrangements, and purpose-driven leadership pathways.
In the sections that follow, we will explore emerging trends in executive total rewards, strategies small and midsize businesses can use to compete with larger employers’ offerings, and how partnering with a retained executive search firm can help support compensation design and negotiation. But first, let’s look at the core components commonly included in executive total rewards packages today.
Executive Compensation Trends: Holistic and Purpose-Driven Rewards
What are the foundational elements of a total rewards package for executives?
Total rewards for C-suite executives have a purpose that transcends compensation. They are designed to incentivize leaders to focus on excellence and help the organization achieve its goals, including driving growth, innovation and profitability.
While these packages are often highly personalized, you will find that most major companies offer their executive leadership hires a mix of the following elements.
Monetary components
Monetary rewards include a competitive base salary, annual performance bonuses tied to near- and long-term business goals, and equity or equity-like incentives that encourage leaders to think like owners. Long-term incentive plans, deferred compensation and retention bonuses are also common, especially for roles tied to business continuity and growth.
According to the 2026 Salary Guide From Robert Half, executive compensation packages commonly combine equity grants, long-term incentives and cash performance awards that can equal a significant portion of annual base salary. Executive annual bonuses typically range from 20% to 35% of base compensation, averaging above $60,000 per year, and one-time signing bonuses between $10,000 and $40,000 are common among executives.
Many organizations are also reevaluating their executive pay structures to address concerns about equity and fairness. Top factors for this trend include:
The CEO pay ratio disclosure, which focuses on the gap between the CEO’s compensation and the median employee’s pay. Publicly traded companies in the U.S. are required by the Securities and Exchange Commission (SEC) to disclose this ratio under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
Pay transparency, which promotes openness about employee compensation, including salaries and benefits. This practice aims to reduce pay inequity and help employees understand how employers determine compensation. Several states, including California, Colorado, New York and Nevada, have enacted laws requiring employers to disclose pay ranges or salary information to employees or job applicants.
Comprehensive benefits
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The trend toward equitable offerings has led many organizations to offer similar core benefits to their entire workforce to help promote fairness and inclusion. However, executive-level packages typically go a step further with greater choice, customization and protection.
Senior leaders may receive supplemental benefits designed to support their expanded responsibilities and workloads, such as flexible paid time off, enhanced retirement and deferred compensation programs, and exclusive health and wellness services.
Executive benefits are also evolving to reflect modern workforce expectations, with more companies offering support for financial planning, family care, and workload and stress management. These offerings not only help protect senior executives from burnout but also strengthen long-term retention and leadership continuity at the highest levels of the organization.
Get insight into total compensation trends for employees at all levels in the 2026 Salary Guide From Robert Half.
Non-monetary rewards
Compelling financial compensation is necessary to attract top talent for executive roles, but it is often the non-monetary elements of a total rewards package that determine whether leaders stay, thrive and remain engaged. Senior executives operate under intense pressure and must meet high expectations—and that shapes their overall priorities. Alongside earning competitive pay, many leaders seek to:
Be influential and make a strategic impact
Continue learning and growing professionally
Maintain a healthy level of work-life integration
This is where highly personalized, non-monetary rewards aligned with a leader’s needs and interests come into play in total rewards. To secure executive talent, many businesses are offering increased decision-making authority, opportunities to lead strategic initiatives, access to executive coaching or professional networks, flexible work arrangements, customized well-being support, and more.
These offerings can help strengthen retention by giving executives more control over their leadership experience and long-term growth. They have also paved the way for another trend in total rewards strategies: a growing focus on purpose-driven rewards.
What are purpose-driven rewards?
Purpose-driven rewards represent the next evolution in total rewards design for executives. These offerings appeal to leaders who want their work to have broader impact and reflect something meaningful beyond financial results or career progression.
Examples of purpose-driven rewards include:
Opportunities to lead sustainability, community impact or corporate responsibility initiatives
Recognition for leadership contributions that benefit employees, customers or communities
Company-supported participation in nonprofit boards or industry councils
Leadership development through mentorship or social impact advisory roles
Time, funding or matching programs that support personal philanthropic initiatives
By weaving purpose into executive rewards, companies can differentiate their leadership experience and strengthen loyalty among executives who prioritize impact.
Why Purpose-Driven Rewards Matter
Purpose-driven rewards help attract and retain executives who are motivated by more than financial compensation. They appeal to leaders who want their work to reflect their values and make a meaningful impact.
When integrated into a holistic total rewards strategy, purpose-driven rewards can strengthen executive engagement, increase commitment to company goals and reduce turnover in critical leadership roles. They reinforce what many leaders now seek from their careers: not just success, but significance.
Holistic total rewards can help smaller firms compete more effectively for executive talent
Large enterprises with significant budgets and HR capabilities have traditionally had an edge over small and midsize firms in attracting senior leaders because they can offer higher salaries and more extensive benefits. But the increased focus on offering holistic packages is helping to level the playing field for smaller businesses.
These companies often have more flexibility to prioritize non-monetary benefits and purpose-driven rewards, even if they can’t match the same level of salary, perks and benefits that larger firms can provide. Some ways that small and midsize businesses can modify current trends in total rewards for executives to suit their size and scale include:
Offering simplified equity alternatives such as profit-sharing agreements, phantom shares or performance-based cash plans to align executive incentives with company success.
Providing customizable benefits such as executive coaching, wellness stipends, caregiver support, paid sabbaticals or professional memberships—so that leaders can shape their total rewards package to fit personal and career priorities.
Moving faster than larger competitors with transparent salary ranges, milestone-based bonus structures, and a streamlined and efficient offer process.
Of course, governance still matters when designing innovative packages for executives. Total compensation must remain responsible and competitive with industry benchmarks, especially if the company plans to pursue a sale, merger or initial public offering—stages where executive pay is closely scrutinized and often becomes public.
With pay transparency laws expanding, smaller businesses are also wise to adhere to best practices before they are legally required to do so. Technology can help here: Many organizations now use HR analytics platforms and other tools and resources to build total rewards strategies that are both transparent and tailored to the needs and goals of their executive teams.
How retained executive search consultants can help businesses structure their total rewards
A reputable retained executive search firm can be an invaluable partner when designing total rewards packages for C-suite and senior leadership roles. These firms bring real-time market insight and compensation expertise, helping businesses structure offers that are competitive, aligned with the company’s mission and values, and reflective of the organization’s culture.
Retained executive search consultants are skilled at helping companies negotiate compensation packages that will appeal to high-level candidates while maintaining budgetary constraints and adhering to relevant regulatory standards and industry best practices. They can also advise on structuring a total compensation approach to support long-term company goals and succession planning.
By leveraging their experience and market knowledge, leading retained executive search firms can help businesses of all sizes understand the latest trends in total rewards so they can create and refine packages that can attract, motivate and retain top executive talent while supporting business objectives.
Find your next leader—with help from Robert Half
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Contact Robert Half’s award-winning retained executive search practice today to discuss your specific situation. Our highly experienced retained consultants can provide valuable guidance and insight, including how to design compelling total rewards packages for executives, and help you find the C-suite and senior management professionals to lead your business forward.
