Nine in 10 Firms Fear In-House Systems Can't Keep Pace with Executive Pay Demands
CSC, the world's leading provider of global business administration and compliance solutions, has released new research revealing that managing executive compensation has become a mounting crisis for financial services firms — with nearly 89% of senior HR, rewards, and compensation leaders saying their in-house technology simply cannot keep pace with demand.
The study, The Future of Reward in Financial Services: Executive Compensation in 2026, surveyed 300 senior HR, rewards, and compensation leaders across Europe, Asia Pacific, and North America — spanning private markets, asset management, insurance, and investment banking. The findings paint a stark picture of systems under strain as long-term incentive (LTI) schemes grow in complexity and scope.
"Participation in LTI schemes is widening, and expectations around fairness and transparency are increasing. While that's positive from a talent and performance perspective, it also means firms are dealing with more moving parts."
— Shane Hugill, Head of Executive Compensation Services, CSCComplexity Is the New Normal
More than four in five (86%) respondents now find the administration of compensation schemes complex, reflecting the rapid evolution and expansion of LTI structures across global organizations. This complexity is being driven by two converging forces: rising scheme participation and intensifying regulatory scrutiny.
80% of firms report increased participation in compensation schemes over the past three years. As organizations push incentives beyond the C-suite to support broader retention and performance goals, the administrative burden grows. Meanwhile, half (50%) of respondents say they are actively preparing for 2026 transparency reviews and regulatory consultations — signaling a significant uptick in compliance and reporting obligations on the horizon.
"As the labor market becomes increasingly competitive, firms have to think more creatively about how they reward and retain top talent. 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."
— Jennifer Kenton, Chief Commercial Officer, CSCData Fragmentation: A Hidden Risk
Beyond complexity, the research exposes a significant data integrity problem. Two-thirds (66%) of respondents cite reliance on multiple service providers as a key barrier to maintaining accurate and consistent compensation data, while 64% point to the challenge of operating across multiple regulatory environments. Together, these issues raise the risk of reporting errors and compliance failures — and make it harder for firms to maintain a single, reliable view of their incentive plan data.
In response, companies are turning outward. More than three-quarters (77%) of respondents already use multiple outsourcing partners to administer compensation schemes across jurisdictions — a telling sign that internal capabilities are falling short. The industry is clearly looking beyond the firewall for solutions that can consolidate, streamline, and future-proof executive pay administration.
CSC positions itself as an answer to this fragmentation, offering a fully outsourced, global plan administration and special purpose vehicle (SPV) solution. Its technology platform, powered by Ledgy, aims to bring all incentive plans into a single environment — improving visibility, efficiency, and control for compensation leaders navigating an increasingly complex global landscape.
Technology is failing compensation teams. 89% of senior HR and rewards leaders say their in-house systems cannot keep up with the growing demands of executive compensation management.
LTI scheme participation is expanding rapidly. 80% of firms report more employees entering incentive schemes over the last three years, stretching programs well beyond the senior executive tier.
Regulatory pressure is mounting. Half of all surveyed firms are already preparing for 2026 transparency reviews and regulatory consultations, adding significant compliance complexity.
Fragmented data is a growing liability. 66% of firms flag multi-provider reliance as a top barrier to data accuracy and consistency, while 64% struggle with multi-jurisdictional regulatory environments.
Outsourcing is the dominant response. 77% of firms already rely on multiple outsourcing partners for compensation administration — pointing to an industry-wide shift toward external expertise and consolidated technology platforms.