Employee Benefits and Rewards

How large should an executive’s target bonus be as a percentage of their salary? From 20% for VPs of HR to 100% for VPs of Sales Getting these ratios wrong can hurt retention or misalign incentives of your top execs. ______________ 𝗧𝗵𝗲 𝗿𝗲𝘀𝘂𝗹𝘁𝘀 𝗯𝗮𝘀𝗲𝗱 𝗼𝗻 𝗮𝗻 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝗼𝗳 𝟮,𝟳𝟬𝟬+ 𝗲𝘅𝗲𝗰𝘀: Our data science team took a look at both the medians and the modes (most common) by executive role. And as a key caveat, this analysis only looks at executives with a defined target variable/bonus plan in place; it’s worth noting that many execs in tech are on a 100% salary cash compensation plan.   • VP of Sales: 100% (median), 100% (mode)   • SVP of Sales: 100% (median), 100% (mode)   • Chief Revenue Officer: 85% (median), 100% (mode)   • Chief Executive Officer: 50% (median), 100% (mode)   • Chief Financial Officer: 40% (median), 30% (mode)   • Chief People Officer: 40% (median), 50% (mode)   • Chief Product Officer: 40% (median), 50% (mode)   • Chief Technology Officer: 35% (median), 15% (mode)   • VP of Business Development: 35% (median), 25% (mode)   • VP of Customer Success: 30% (median), 20% (mode)   • VP of Engineering: 30% (median), 30% (mode)   • VP of Finance: 30% (median), 30% (mode)   • Chief Marketing Officer: 30% (median), 50% (mode)   • VP of Product: 30% (median), 30% (mode)   • VP of Marketing: 25% (median), 30% (mode)   • VP of HR: 25% (median), 20% (mode) ______________ 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆𝘀: 1️⃣ 𝗦𝗮𝗹𝗲𝘀 𝗮𝗻𝗱 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗹𝗲𝗮𝗱𝗲𝗿𝘀 𝘁𝘆𝗽𝗶𝗰𝗮𝗹𝗹𝘆 𝗵𝗮𝘃𝗲 𝗮 𝟱𝟬/𝟱𝟬 𝘀𝗽𝗹𝗶𝘁. This is the most “aggressive” TTC allocation of any exec role. 2️⃣ 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴𝗹𝘆, 𝗖𝗵𝗶𝗲𝗳 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗢𝗳𝗳𝗶𝗰𝗲𝗿𝘀 𝘁𝗲𝗻𝗱 𝘁𝗼 𝗵𝗮𝘃𝗲 𝗹𝗼𝘄𝗲𝗿 𝗯𝗼𝗻𝘂𝘀 𝗽𝗲𝗿𝗰𝗲𝗻𝘁𝗮𝗴𝗲𝘀 𝘁𝗵𝗮𝗻 𝗖𝗵𝗶𝗲𝗳 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗢𝗳𝗳𝗶𝗰𝗲𝗿𝘀. This likely reflects that the two roles have different risk-profiles and downstream incentive practices. Often, CPOs are expected to make large bets that can make or break company quarters whereas CTOs leaders tend to focus more on execution, quality, and long-term technical foundation. 3️⃣ 𝗧𝗵𝗲 𝗺𝗮𝗷𝗼𝗿𝗶𝘁𝘆 𝗼𝗳 𝗼𝘁𝗵𝗲𝗿 𝗲𝘅𝗲𝗰 𝗿𝗼𝗹𝗲𝘀 𝘁𝗲𝗻𝗱 𝘁𝗼 𝗵𝗮𝘃𝗲 𝗯𝗼𝗻𝘂𝘀𝗲𝘀 𝗶𝗻 𝘁𝗵𝗲 ~𝟮𝟬-𝟯𝟬% 𝗿𝗮𝗻𝗴𝗲. 4️⃣ One last key note from our data science team: today’s post lumps all company stages together into one sample set, but it generally *is* the case that variable pay as % of base gets higher as a company gets larger. We can look more at this dynamic in a future post. ______________ 𝗣𝗿𝗮𝗰𝘁𝗶𝗰𝗮𝗹 𝗦𝘂𝗴𝗴𝗲𝘀𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗖𝗼𝗺𝗽𝗲𝗻𝘀𝗮𝘁𝗶𝗼𝗻 & 𝗛𝗥 𝗟𝗲𝗮𝗱𝗲𝗿𝘀: Exec comp is both an art and a science. Use today’s post as a bit of scientific backing for your decisions as you craft the optimal executive incentive plans. What role-specific factors should influence your variable pay decisions?

When Rajiv was offered a CEO role at a mid-sized tech company, the headline number looked impressive — nearly 40% higher than his current pay. But when he unpacked it, he realized: The fixed pay was modest. A big chunk came as ESOPs vesting over 4 years. The bonus was tied to aggressive targets that depended on a market expansion not yet tested. On paper, it was a dream. In reality, it was the board’s way of testing his skin in the game. This is the politics of executive compensation. It’s not just salary — it’s strategy. Companies use pay structures to align incentives, retain leaders, or quietly signal risk. Don’t just look at the CTC headline. Break it down. Ask: Is this pay designed to retain me, motivate me, or test me? Negotiate not just for today’s number, but for tomorrow’s value.

#GCCs came to India for cost, stayed for talent, and now need flexibility to keep that talent. Dear #GCCs: beanbags don’t fix burnout, and pizza Fridays won’t save your cost-arbitrage story. The facts you can’t ignore 52 % of Indian employees will quit a job that doesn’t flex to real-life needs—from childcare to side-hustle time.  Companies offering pick-your-own health cover have jumped 300 % in five years—because therapy sessions for Mum beat a one-size policy every time. Even the biggest brands are leaking talent: TCS just logged 13.8 % attrition this quarter. Inside GCCs, the picture isn’t prettier—voluntary attrition is still 12.6 %. So much for that tidy spreadsheet of “40 % cost savings.” Why your legacy perks don’t cut it Life is modular; your benefits aren’t. We customise playlists, workouts, and coffee orders—yet your perk bundle comes in a single flavour: “Take it or leave.” Burnout is on-demand, not annual. People need support the moment stress spikes, not when HR runs its yearly wellness week. Attrition is the hidden tax on cheap perks. Re-hire, re-train, missed sprints—that’s your arbitrage, gone (plus interest). Three fixes—no beanbags required Perks wallet, not perk list. Coursera credits today, pet insurance tomorrow. Let adults choose. Real-time benefits. Monthly roll-overs beat “use-it-or-lose-it” allowances. Therapy tonight? Book it and swipe. Retention on the scorecard. Tie leadership bonuses to six-month stickiness, not seats filled. If they leave, nobody “saved” anything. #GCCs came to India for cost, stayed for talent, and now need flexibility to keep that talent. Upgrade the perks—or watch your engineers upgrade themselves somewhere else. #StoptheLoss

10 years ago, I left my job at one of the largest and most-profitable financial companies in America, walking away from extensive "benefits" to protect my mental health and career ambitions. With an infant and a toddler to support, it petrified me to give up what I saw as my family’s "lifeline": the health and retirement benefits provided by my employer. The paralysis I felt then is probably what many individuals are facing in today's uncertain job market, with #layoffs, people being aged out of work, job shifts due to AI, etc. Of course, when any job shift occurs, the first thing many panic about is around their pre-existing "benefits" which may be going away. If you are feeling this panic, it's time to take a deep breath 🧘♀️. The benefits that you considered your lifeline and made you loyal to a job or company may not have been all that you perceived them to be. My personal journey of breaking away from traditional corporate packages has taught me lessons on how traditional benefits packages that companies use to lure candidates aren't always all they're cracked up to be…and how to find smarter and more efficient solutions for my family. Let's break some of these “perks” down and reveal what lies behind the walls: ➦ Health Insurance ⚕️: When I think of health insurance, my mind automatically goes to worst-case scenarios when I truly need the coverage 🏥. It’s easy to get lured by what is labeled as “world-class health benefits” by a company. I discovered that what I thought couldn't get any better at some of these large institutions was actually perfectly matched by finding the best plan for myself on my state’s Affordable Care Act website, at very attractive prices. ➦ Dental Benefits 🦷: Walk into a dentist's office to pay cash for your service, and the dentist himself will tell you the truth behind Dental Insurance...that it is a complete waste 🗑. You pay monthly premiums, but most of the items you actually need cost way more than you expected. Isn’t it better to consider just paying cash when you actually need a dentist, like for cleanings and x rays? ➦ 401(k)s and Retirement Plans: A quick online search about 401(k)s will show you that many people are starting to call these limiting at best, “a scam” at worst. While I wouldn't go that far, I would agree that you are forced into a program chosen by an employer who often knows little about finance and you are told to put aside your hard-earned money into the abyss. Isn't it better to start your own IRA with the guidance of a financial planner to build something that suits you best? Reach out if you don't have one, and I'll be happy to connect you with one in my network. What does all of this mean for you as you proceed with your job search? Don't take a job solely because of the allure of the benefits package if you have no interest in the job nor passion for the company's mission. You will likely pay in MANY other ways. Please comment w more ideas

If you’re praised in public but drained in private… That’s not recognition. That’s manipulation. No role is worth sacrificing your self-worth. People join companies for the job. They stay or burn out because of how they’re treated. Ever seen someone accept a raise… Only to feel more trapped in a culture that erodes them? Or perks offered as a substitute for what people actually need: ✅ Respect ✅ Trust ✅ Psychological safety Here’s the truth: No paycheck covers the cost of: → Trust broken behind closed doors → “Stretch” roles that stretch people too thin → Loyalty taken for granted → Burnout framed as commitment → Dysfunction excused by title or tenure → Fear replacing feedback → Being unheard, unseen, and ultimately unwell People don’t stay for yoga rooms. They stay for leaders who listen, care, and act. We need leaders who: ❌ Don’t try to buy loyalty ✔️ Do the hard work to earn it ❌ Don’t glorify hustle ✔️ Normalize boundaries and rest ❌ Don’t protect toxic performance ✔️ Prioritize team wellbeing over individual output ❌ Don’t blame attrition ✔️ Reflect with humility—and take accountability Culture is not a perk. It’s the reason people stay or the reason they walk away. So ask yourself: Are we building environments worth staying for? Or just offering incentives to tolerate what should not be tolerated? — ♻️Repost if you believe in human-centered workplaces. ➕Follow Utkarsh Narang for more reflections on leadership, growth, and building cultures where people thrive.

The dirty secret about employee perks? They’re just distractions. Companies keep piling on wellness programs and “fun” benefits while the basics are broken. And that’s why people are disengaged.  Because no amount of free food makes up for poor pay. No “mindfulness app” replaces a caring leader.  No yoga session fixes the frustration of no career path. The answer is clear but often inconvenient: do the hard work of getting the fundamentals right. Pay competitively.  Invest in growth and learning. Train managers to lead with empathy.  And give employees the flexibility that respects their time and lives. Only after that should perks even be considered.  Because no one leaves a job saying, “The lunch options weren’t good enough.” They leave when the five things that matter most are missing.

Perks are not well-being. And not every “EAP” is a real EAP. Too often, we mistake activities for well-being. Step challenges, gym memberships, a mindfulness app, or a once-a-year awareness day may look good on paper, but they are not substitutes for a true employee well-being program. Activities create short bursts of positivity, but they don’t solve the deeper issues that shape how people work and live. The same confusion happens with EAP. Some services call themselves “Employee Assistance,” but the name alone doesn’t make them one. A real EAP is a specialised professional field, built on standards and expertise. It is not just a helpline or a counselling add-on. A genuine EAP works on two levels: ➜ For individuals: providing confidential, professional support for personal, family, financial, and work challenges, etc. ➜ For organisations: addressing systemic risks that threaten culture, safety, productivity, and long-term sustainability. Think of it like healthcare. A vitamin drink might give a quick boost, but it’s not the same as seeing a qualified doctor who treats the root cause. That’s the difference between perks and a true EAP. When leaders confuse the two, they leave their people and their organisation unprotected. The real question is not, “What benefits are we offering?” But, “Are we safeguarding our people and our future?” If you’re a leader and want real support for your people, happy to have a conversation. Remember: perks don’t protect people. Programs do. 👋 Hi, I’m Nerry Toledo, LinkedIn Top Voice, mental health advocate and workplace well-being & EAP specialist, Lyra MENA.

You can't negotiate what you don't understand. Whether you're hiring or getting hired, these 12 compensation terms matter: 1. Total Compensation Everything an employee receives...salary, bonuses, equity, benefits, perks. This is what actually matters when comparing offers, not just the base number. 2. Base Salary Fixed pay for regular work hours. Excludes overtime, bonuses, and variable pay. The foundation everything else builds on. 3. Variable Pay Compensation that changes based on performance, sales targets, or company results. Commissions, bonuses, profit-sharing all fall here. 4. Benefits Package Non-wage compensation...health insurance, retirement plans, PTO. Often worth 20-30% of base salary but rarely calculated properly. 5. Salary Range The minimum and maximum pay for a specific role. Essential for internal equity and external competitiveness. 6. Cost of Living Adjustment (COLA) Wage increases to offset inflation and maintain purchasing power. Different from merit-based raises. 7. Deferred Compensation Pay earned now but received later. Retirement contributions, stock vesting schedules, sabbatical programs. 8. Equity Compensation Ownership stake through stock or stock options. Can be worth nothing or everything depending on company performance. 9. Performance-Based Pay Direct tie between individual or company results and compensation. Bonuses, profit-sharing, commission structures. 10. Paid Time Off (PTO) Bank of hours for vacation, personal days, sick leave. Can be accrued, front-loaded, or unlimited. 11. Fringe Benefits Perks beyond standard benefits...company cars, gym memberships, childcare assistance. Nice-to-haves that can influence decisions. 12. Compensation Benchmarking Comparing your pay rates to market standards. Critical for staying competitive and maintaining internal fairness. TAKEAWAY: Compensation is more complex than most people realize. Understanding these terms helps you design better packages, negotiate more effectively, and avoid costly mistakes. Whether you're hiring, being hired, or managing a team...this vocabulary matters.

Understanding the New Wage Structure under the Code on Wages, 2019 Salary structuring is no longer just about CTC — it’s about compliance, clarity, and correct classification. Here’s a complete breakdown: 🔹 Part A – Wage Salary (Core Wages) Includes: • Basic Pay • Dearness Allowance (DA) • Retaining Allowance ➡️ Must be at least 50% of total remuneration 🔹 Part B – Salary Allowances Includes: • HRA • Statutory Bonus (Payable) • Conveyance Allowance • Medical Allowance • Book & Perquisites Allowance • Communication Allowance • Children Education Allowance • Telephone Allowance • Mobile Allowance • Health Allowance • Leave Travel Allowance (LTA) • Meal Allowance • Overtime Payment • Employer PF Contribution • Statutory Bonus (Employer Monthly) • Leave Encashment (Monthly) ➡️ If Part B exceeds 50% of total remuneration, the excess shifts to Part A (Wages) 🔹 Part C – Other than Remuneration Includes: • PF Admin Charges • PF EDLI Charges • Employer ESI • Employer LWF • Insurance • Gratuity • Variable Pay • Reimbursements (education, hostel, food, internet, etc.) • Leave Encashment (at the time of resignation) ➡️ These are NOT part of wages 📌 Key Compliance – Section 18 Wages must be paid on time within prescribed limits ➡️ Delays can attract penalties 💡 A structured salary ensures: ✔️ Legal compliance ✔️ Transparency ✔️ Accurate PF, Bonus & statutory calculations “Fair wages build trust. Compliance builds credibility.” #CodeOnWages #HRCompliance #Payroll #SalaryStructure #LabourLaws #HRIndia #WagesAct #ComplianceMatters

Are you trying to ensure your key employees don’t jump ship? Many RIA owners struggle with how to reward and retain top talent without giving away actual ownership in the firm. The good news is that there are creative tools available that give employees a sense of participation in the firm’s growth while allowing you to maintain full control. One such tool is the use of profits interests. This structure gives employees the ability to participate in the future upside of the business without handing over any current equity value or management rights. In practice, it means they only share in growth from the point of the grant forward, which makes it a flexible and appealing way to reward loyalty and long-term performance while keeping ownership clean. Another approach that has become popular is phantom equity. Phantom equity mirrors the economics of actual equity but does not make the employee a legal owner. Instead, it promises cash payments tied to the value of the firm or its revenues at some future date. Employees feel like owners because their financial rewards rise as the firm grows, but you avoid the complications of actually issuing units or stock. Also, some firms turn to bonus compensation triggered by a change of control. This means that if the RIA is ever sold, certain employees are rewarded with a cash payout tied to the sale proceeds. For employees, it creates a clear incentive to stay engaged and help drive growth leading up to a potential transaction. For owners, it creates a retention hook that keeps the team committed until the moment the firm’s value is realized. These structures not only align employee incentives with the success of the firm, they also create a culture where key people feel they are truly invested in the future. The important part is getting the design right so that the plan motivates your team, protects the firm, and is tax efficient for everyone involved. We help RIAs structure these kinds of programs. If you are looking for a way to reward loyalty, retain top performers, and strengthen the long-term stability of your firm, now is the time to explore these options. Let’s talk about how to tailor an incentive plan that works for your business and secures the future of your most valuable asset—your people.