A new survey by CSC of 300 senior HR, rewards, and compensation leaders across Europe, Asia Pacific, and North America finds that 89% believe their in-house technology cannot keep pace with rising executive compensation demands. The research also shows 80% of firms have increased participation in incentive schemes over the past three years, while 66% identify reliance on multiple service providers as a key barrier to accurate data. The findings highlight growing complexity in long‑term incentive (LTI) plans and the pressure on financial services firms to adapt their administration models.
What Happened
CSC conducted the survey in partnership with PureProfile, targeting senior HR and compensation professionals working in private markets, asset management, insurance, and investment banking. According to the results, 86% of respondents describe the administration of compensation schemes as complex, reflecting the rapid evolution and expansion of LTI structures globally. Four in five (80%) reported increased participation in compensation schemes over the last three years, as organizations extend incentives beyond senior executives to aid retention and performance. Half (50%) said they are preparing for 2026 transparency reviews and regulatory consultations, signalling higher compliance expectations. Two‑thirds (66%) cited reliance on multiple service providers as a barrier to maintaining accurate and consistent data, and 64% pointed to operating across multiple regulatory environments as another challenge. These factors increase the risk of reporting errors and compliance failures, making it harder for firms to maintain a single view of incentive‑plan data.
Regulatory Context
The survey notes that half of the respondents are preparing for 2026 transparency reviews and regulatory consultations, indicating a rise in compliance and reporting obligations. CSC’s head of Executive Compensation Services, Shane Hugill, said that widening participation in LTI schemes and growing expectations around fairness and transparency are driving firms to manage more moving parts across jurisdictions. The regulatory environment is therefore a significant contributor to the complexity that internal systems struggle to handle, prompting firms to seek external support for administration and governance.
Market Relevance
For fintech, banking, payments, wealth, insurance, and broader financial infrastructure providers, the results underscore a growing demand for reliable, scalable compensation administration solutions. As firms expand LTI participation and face stricter transparency rules, the ability to consolidate data from multiple providers and jurisdictions becomes a competitive differentiator. Technology platforms that can integrate plan design, administration, and governance while offering visibility and control are likely to see increased interest from CFOs, compliance officers, and HR leaders seeking to reduce operational risk and improve reporting accuracy.
Institutional Implications
The findings suggest that many financial services firms are rethinking how they manage incentive plans, with more than three‑quarters (77%) saying they use multiple outsourcing partners to administer compensation schemes across jurisdictions. CSC positions its fully outsourced, global plan administration and special purpose vehicle (SPV) solution—combining expertise in plan design, administration, and governance with a flexible, scalable delivery model powered by Ledgy—as a response to these challenges. The company says its all‑in‑one technology platform brings plans into a single environment, enhancing visibility, efficiency, and control. However, the survey does not disclose adoption rates of CSC’s specific offering beyond the general outsourcing figures.
Key Takeaways
- 89% of surveyed senior HR and compensation leaders say in‑house technology cannot keep pace with executive compensation demands.
- 80% of firms report increased participation in incentive schemes over the past three years, widening the talent‑retention pool.
- 66% identify reliance on multiple service providers as a key barrier to maintaining accurate and consistent compensation data.
- Half of respondents are preparing for 2026 transparency reviews and regulatory consultations, signalling higher compliance expectations.
- More than three‑quarters (77%) use multiple outsourcing partners to administer compensation schemes across jurisdictions.
FinanceInsyte's Take
The CSC survey highlights a clear mismatch between the growing sophistication of executive compensation programs and the capabilities of many firms’ internal systems. For decision‑makers in finance and related sectors, the data points to a pressing need for integrated administration tools that can handle multi‑jurisdictional, multi‑provider environments while meeting upcoming transparency requirements. While outsourcing and specialized platforms appear to be the prevailing response, the long‑term effectiveness of any single solution will depend on how well it consolidates data, reduces reporting risk, and adapts to evolving regulatory frameworks. Firms should monitor how technology providers address data fragmentation and whether new standards emerge to simplify cross‑border incentive plan management.
Source: Businesswire
