The 25/26 Incentive Pulse provides more than market data — it offers context. In an environment shaped by gender pay reporting, shareholder scrutiny and cost discipline, Boards and Remuneration Committees are seeking sharper alignment between pay and performance.
Here’s how the latest Pulse can help address three pressing challenges:
1. Gender Pay & Variable Remuneration Transparency
The Issue
WGEA reporting has highlighted discretionary incentives as a driver of gender pay gaps — particularly where payout levels, participation depth or discretionary overlays lack transparency.
What the Pulse Reveals
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Clear market benchmarks on STI/LTI participation levels
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Data on target opportunity levels by role
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Insight into above-target multipliers
How It Helps
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Benchmark whether participation is equitably structured
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Assess whether payout ranges are objectively calibrated
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Review where discretion may be creating unintended gaps
Practical Application:
Align objective performance thresholds and review eligibility depth across comparable roles.
2. Differentiating Outcomes & Creating Performance Tension
The Issue
Many organisations struggle to meaningfully distinguish between solid and exceptional performance.
What the Pulse Reveals
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Only 29% achieve strong differentiation
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18% report no differentiation
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Above-target STI multipliers median at 150%
How It Helps
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Calibrate payout curves
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Introduce genuine upside for out-performers
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Reduce compression in outcomes
Practical Application:
Design payout structures that create a material gap between “at expectation” and “outperforming”.
3. Managing Incentive Spend & Cost Discipline
The Issue
Remuneration is often the largest cost base. Incentives must create measurable value.
What the Pulse Reveals
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Nearly half of organisations spend <5% of profit on STI
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Strong alignment between metrics and shareholder value in LTI design
How It Helps
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Benchmark affordability
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Assess spend efficiency
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Align metrics to strategic value creation
Practical Application:
Review incentive spend as a proportion of profitability and assess ROI of each metric.
Looking Ahead: Refinement, Not Reinvention
Incentive design is not static. As organisations refine settings for FY27, the Pulse shows a clear focus on:
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Introducing new or revised performance metrics (42%)
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Increasing performance differentiation (25%)
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Adjusting participation and quantum
The direction of travel is evident.
The question is not whether to change — but how deliberately you do so.
Applying the Insight to Your Organisation
If you would like to:
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Benchmark your current incentive settings
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Assess performance differentiation effectiveness
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Review incentive spend efficiency
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Discuss gender pay implications of variable remuneration
We would welcome a short, focused discussion.