The Executive Compensation Playbook: Trends and Advisory Perspectives

By Julia Culkin-Jacobia – Practice Leader, Compensation Consulting

As an executive compensation consultant with extensive experience advising boards, CEOs, and ownership groups, I’ve seen firsthand how compensation strategy has become a central governance and business priority. The conversation around executive pay is no longer limited to market competitiveness, it now reflects an organization’s values, strategic direction, and leadership philosophy. Amid intensifying scrutiny from regulators, funders, employees, and other stakeholders, boards are recognizing the need for more rigorous, transparent, and forward-thinking approaches to executive compensation.

One of the most significant shifts I am observing is the increased emphasis on pay transparency and equity. With expanding legislation at the state level, organizations are under pressure to articulate how compensation decisions are made and ensure that their processes are well-documented and consistently applied. As a result, formalizing a compensation philosophy and adopting a structured review process is not just a best practice, it is essential. Boards and compensation committees are evolving accordingly, often engaging third-party advisors like myself to bring independent analysis, ensure defensibility, and instill confidence in decision-making.

This is especially true in the non-profit sector, where external accountability is particularly pronounced. Funders, watchdog organizations, and public stakeholders are demanding greater visibility into how leadership compensation aligns with mission and stewardship expectations. In these environments, a well-structured compensation strategy, supported by credible benchmarking and governance practices, is key to maintaining donor trust and regulatory compliance.

Succession planning and leadership continuity are also driving a renewed focus on compensation structures. As many founder-led organizations prepare for transitions, and as the talent market remains highly competitive, I advise boards to proactively assess how compensation can support long-term retention and leadership development. This includes the strategic use of retention incentives, deferred compensation arrangements, and long-term incentive structures that reward commitment and drive continuity. In closely held or family-owned businesses, these tools must also reflect ownership values while enabling smooth transitions to external leadership.

There is growing demand for compensation plans that clearly link to key performance indicators and multi-year business goals. Boards are increasingly seeking alignment between compensation and strategic execution. As a consultant, one of my core responsibilities is to help boards design incentive plans that reinforce business priorities, promote accountability, and support sustained growth. These conversations often go beyond compensation mechanics, they touch on culture, succession, and enterprise value.

Finally, inflation and labor market dynamics continue to impact executive compensation levels. Wage pressures, evolving candidate expectations, and increased competition for leadership talent make it imperative for organizations to maintain updated, data-driven salary structures and incentive strategies. In this climate, access to relevant market data and objective insights has never been more critical.

Engaging an experienced executive compensation consultant provides more than market benchmarking. It delivers independent judgment, strategic alignment, and customized solutions that help leadership teams make informed, confident decisions. Whether your organization is preparing for a CEO transition, responding to regulatory pressures, or recalibrating compensation to reflect performance, an expert advisor can help ensure that your compensation practices are defensible, competitive, and aligned with your mission, culture, and future vision.

If your organization is considering a review of its executive compensation or would benefit from experienced advisory support, I welcome the opportunity to connect and explore how I can help. Get in touch.

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