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Executive compensation update 2025: Approaching challenges with best practices

August 19, 2025

There is a complex mix of evolving factors impacting the landscape for executive compensation today. Heightened scrutiny from investors and proxy advisors is driving change, while concerns about global competitiveness, particularly compared to the US, are growing. In response, companies are adapting incentive structures through increased incentive opportunities and innovative hybrid LTI plans to remain competitive. Sustainability and ESG considerations are also playing a significant role, with companies refining ESG performance measurement and integrating ESG targets into executive compensation frameworks. Furthermore, US policy developments are impacting European reward practices, particularly around diversity, equity, and inclusion metrics in incentive programs, adding another layer of complexity to executive compensation decisions.

In this webcast, our experts provided their valuable insights on these factors, with a focus on three primary areas:

  • European AGM season insights: An analysis of early trends focusing on changes to remuneration policies and practices, incentive opportunity increases, LTI design modifications, and the integration of ESG metrics into compensation frameworks.
  • Global competitiveness debate: The speakers explored the growing concern about Europe's global competitiveness in terms of executive compensation, particularly in comparison to the US.
  • Sustainability landscape and ESG: We explored the evolving landscape and the impact of US policy developments on European companies' ESG practices and executive compensation. The speakers also highlighted the ongoing integration of ESG metrics into incentive plans and the challenges posed by changing regulatory environments.

To learn about the current trends and challenges in executive compensation, including the strategies companies are employing to remain competitive, complete the form on this page to watch our webcast on demand.

Contacts

Dr Richard Belfield, Senior Managing Director, Executive Compensation and Board Advisory - Europe

Dr Richard Belfield

Senior Managing Director, Executive Compensation and Board Advisory - Europe

Photo of Hannah Summers

Hannah Summers

Senior Director, Stewardship and Sustainability, Executive Compensation and Board Advisory practice

Stephanie Schmelter, Senior Director, Executive Compensation and Board Advisory Germany/Austria

Stephanie Schmelter

Senior Director, Executive Compensation and Board Advisory Germany/Austria

Noémie Tack

Senior Director, Executive Compensation and Board Advisory

Jack McKenzie

Director Executive Compensation & Board Advisory

Ralph Lange

Senior Director Executive Compensation, Work and Rewards
Germany/Austria

To watch this webcast, complete the form.