CEO Pay Survey Linked Equity to Retention Risks

As firms struggle with growth, equity-heavy packages are becoming the standard lever to keep leaders from departing.

Updated on Sept. 28, 2026 in Public Companies

Bold flat-color editorial illustration showing a steel bolt and gold cube, representing executive compensation policy. — Executive compensation structures increasingly rely on equity grants to boost leadership retention, as 85% of executives view stock value as their most critical incentive. AI Illustration. Upload story photo >

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Does your current compensation influence whether you plan to stay at your job?

A recent study of 350 executives found that 85% view equity value as their most critical compensation component. The findings underscore how compensation structures are influencing turnover among leadership as firms reach significant revenue scales.

Why it matters

The survey highlights a direct correlation between perceived pay fairness and executive flight risk, with underpaid leaders reporting nearly double the likelihood of leaving. For owners, this illustrates the competitive pressure to align long-term incentives with retention strategies during high-growth phases.

The survey of 350 executives, including 297 current CEOs, showed that 85% prioritize equity value in their pay packages. Compensation increases notably once annual company revenue crosses the $250 million benchmark.

The players

JM Search

A King of Prussia, Pennsylvania-based executive search firm specializing in placing leadership for high-growth and private equity-backed organizations.

The details

JM Search conducted the digital survey between March and May 2026, capturing data from both current and transitioning leadership. The findings suggest that equity serves as both a primary motivator and a retention tool, particularly as 76% of executives point to operational execution and growth as their leading daily challenges. For operators, this indicates that pay strategy for top brass is increasingly tied to the long-term appreciation of the business rather than just cash salary.

The survey was conducted from March through May 2026.

Market Landscape

The study follows the industry-wide shift toward long-term incentive plans in executive compensation designed to mitigate turnover. It reflects the broader trend of using equity to align leadership interests with organizational growth targets.

Business owners should review their executive compensation structures against the $250 million revenue threshold to ensure they remain competitive. When evaluating leadership contracts, focus on whether current equity vesting schedules effectively discourage turnover during major growth cycles.

The takeaway

Executive turnover risk remains highest among those who perceive their equity upside as limited. Leaders should audit their compensation packages to ensure they align with the 85% of peers who view long-term equity as the primary incentive for staying.