Nine in 10 Firms Fear In-House Systems Can’t Keep Pace with Executive Pay Demands

Managing executive compensation is a growing challenge for financial services firms, with nearly nine in 10 (89%) saying their in-house technology can’t keep pace with demand. New research by CSC, the leading provider of business administration and compliance solutions, shows that rising complexity, regulatory pressure, and expanding global participation place increasing strain on internal systems and teams.¹

CSC surveyed 300 senior HR, rewards, and compensation leaders across Europe, Asia Pacific, and North America working in private markets, asset management, insurance, and investment banking. The report, The Future of Reward in Financial Services: Executive Compensation in 2026, explores their responses and examines how firms adapt to increasing complexity in long-term incentive (LTI) schemes.

The research revealed that more than four in five (86%) respondents find the administration of compensation schemes is now complex, reflecting the rapid evolution and expansion of LTI structures across global organizations.

Rising participation and regulatory scrutiny are key drivers of this complexity. Four in five (80%) firms report increased participation in compensation schemes over the past three years, as organizations extend incentives beyond senior executives to support retention and reward performance. At the same time, half (50%) are preparing for 2026 transparency reviews and regulatory consultations, signaling a significant increase in compliance and reporting expectations.

“Participation in LTI schemes is widening, and expectations around fairness and transparency are increasing,” said Shane Hugill, head of Executive Compensation Services at CSC. “While that’s positive from a talent and performance perspective, it also means firms are dealing with more moving parts. Many are managing programs across multiple providers and jurisdictions, which can make it harder to keep data consistent and processes under control.”

In addition, data fragmentation now poses a significant challenge for organizations. Two-thirds (66%) of respondents cite reliance on multiple service providers as a key barrier to maintaining accurate and consistent data, while 64% point to operating across multiple regulatory environments. These challenges increase the risk of reporting errors and compliance failures. They also make it harder for firms to maintain a single, accurate view of their incentive plan data.

As a result, companies are rethinking how they manage incentive plans, with many turning to outsourcing and technology partners to improve efficiency and control. More than three-quarters (77%) of respondents say they use multiple outsourcing partners to administer compensation schemes across jurisdictions.

“As the labor market becomes increasingly competitive, firms have to think more creatively about how they reward and retain top talent,” added Jennifer Kenton, chief commercial officer at CSC. “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.”

CSC provides a fully outsourced, global plan administration and special purpose vehicle (SPV) solution for executive compensation and incentive plans, combining expertise in plan design, administration, and governance with a flexible, scalable delivery model. Its all-in-one technology platform, powered by Ledgy, brings plans into a single environment, enhancing visibility, efficiency, and control.

To download a copy of CSC’s The Future of Reward in Financial Services: Executive Compensation in 2026, visit https://www.cscglobal.com/service/campaigns/executive-compensation-2026-report/

About CSC

CSC is the trusted partner of choice for more than 90% of the Fortune 500®, more than 90% of the 100 Best Global Brands (Interbrand®), and more than 75% of the PEI 300. We are the world’s leading provider of global business administration and compliance solutions, specialized administration services to alternative asset managers across a range of fund strategies, transactions involving capital markets participants in both public and private markets, domain name system management, digital brand and fraud protection, and corporate tax software solutions. Founded in 1899 and headquartered in Wilmington, Delaware, USA, CSC has been privately held and professionally managed for more than 125 years. CSC has office locations and capabilities in more than 140 jurisdictions across Europe, the Americas, Asia Pacific, and the Middle East. We are a global company capable of doing business wherever our clients are—and we accomplish that by employing experts in every business we serve. We are the business behind business®. Learn more at cscglobal.com.

¹CSC, in partnership with PureProfile, surveyed 300 senior HR, rewards, and compensation leaders located in Europe, Asia Pacific, and North America working in financial services to understand their views on the increasing complexity in LTI schemes.

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