WILMINGTON, DEL -- 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.