University of Kwazulu-Natal

Executive Compensation In 2026 Wtw Willis Towers Watson

Bonisiwe Shabane
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executive compensation in 2026 wtw willis towers watson

Pressure from key stakeholders, regulatory requirements and changing economic factors are forcing organizations to reconsider and reshape their executive compensation strategies to align with competing demands. To unlock value and deliver exceptional outcomes, you need a partner that understands the range of your challenges and takes a holistic approach. WTW’s Executive Compensation and Board Advisory practice has unmatched knowledge and expertise addressing multifaceted executive compensation, performance and boardroom challenges. We take the time to connect with you to understand the broad-reaching implications of your executive compensation program. Combined with our deep industry expertise, boardroom experience, world-class data, research and analytics, we’ll craft tailored solutions that maximize value for your organization’s investors and other stakeholders. 400+ expert consultants connected across 40+ countries with deep experience advising compensation/remuneration committees and management, exemplifying a global view and innovation while delivering clear perspectives.

Effective executive compensation design must reflect both the competitive landscape and the internal dynamics of an organization. We take pride in our holistic advice to compensation/remuneration committees and management to foster true business partnerships that address factors influencing executive compensation. Referring to the current political and business environment as a “time of change,” an April report by consulting firm WTW on widescale U.S. policy shifts pointed to American workers’ concern about the state of their anticipated salary increases. In that survey, 56% of surveyed employers indicated their workforces are worried about base pay increases. Respondents tried to temper those fears, even slightly, with 48% stating they anticipated no impact to this year’s projected salary increases but some impact on their 2026 budget, and 28% anticipating no impact this...

With that as a backdrop, WTW released its Salary Budget Planning Report on Tuesday, July 8, which, on its face, could perhaps be summed up as: the more things change, the more things stay... Some complex activities are supporting — and even countering — that smoothness. According to the report, the composite look from 1,569 surveyed U.S. organizations shows average salary increase budgets for 2026 will remain stable at 3.5%, matching American employers’ actual increases for 2025. (WTW had initially predicted 3.7% increase budgets for 2025.) The firm’s expanded outlook report for 2026 reflected similar stability for select countries outside of the U.S. “While top-line budgets are generally holding steady, the real shift is happening beneath the surface,” said Brittany Innes, the director of rewards data intelligence at WTW.

“Organizations are being more deliberate about how they allocate pay, where they focus investment and what outcomes they expect to drive. Employers are no longer simply reacting to economic signals; they’re reimagining how to best support broader business goals despite uncertainty.” WTW’s data points for 2026 projections and 2025 actuals resemble those found in other recently released salary budget survey reports for the U.S. market. Looking ahead to 2026, many employers have started mapping out their salary budgets, with the prevailing expectation being that salary increases will remain steady. Recent U.S.

market salary budget survey results include: Against a backdrop of economic uncertainty, organizations are showing less urgency around retention and talent acquisition than in previous years. This is largely due to employees prioritizing job stability, with fewer actively seeking new opportunities. A recent report by Willis Towers Watson stated, “Fewer organizations this year have found employee stability challenging compared to the past two years. Less than one-third of organizations (30%) report difficulty attracting or retaining employees, representing a decrease of 11 percentage points since 2023.” The same report also noted, “Three out of five organizations saw their salary budgets change in the last pay cycle.

More than half (53%) of these organizations reported no change between their anticipated and actual pay budgets in 2025. For the nearly one-third (31%) of these organizations that are projecting lower salary increase budgets than last year, the most common reasons cited are an anticipated recession or weaker financial results (51%) and concerns... Tight labor markets (59%) and inflationary pressures (30%) are the most commonly cited reasons for change among the relatively few organizations that are projecting higher salary increase budgets.” In response, employers are refining their compensation strategies to remain competitive while addressing inflationary challenges. The report identified the following actions: Anticipated recession or weaker financial results top reasons for salary budget adjusments

Salary budgets in Canada and the United States are projected to remain stable in 2026, according to the latest Willis Towers Watson (WTW) 2025 Salary Budget Planning Report — Global (July edition). Employers in both countries are planning median salary increases of 3.5% for the coming year, matching the actual and planned increases for 2025. The top factors affecting salary budget adjustments include: “While top-line budgets are generally holding steady, the real shift is happening beneath the surface: Organisations are being more deliberate about how they allocate pay, where they focus investment and what outcomes they expect... Tower Watson salary benchmarking has long served as a foundation for enterprise compensation strategy, offering HR and compensation teams structured access to market data through comprehensive salary surveys. Now operating as Willis Towers Watson (WTW) following a 2016 merger, this global provider continues to deliver rewards data intelligence across 130+ countries.

However, the compensation landscape has shifted dramatically—rapidly shifting talent markets and the rise of hybrid roles demand faster, more flexible approaches to salary benchmarking data than traditional annual survey cycles can provide. This article focuses on how HR and compensation teams in U.S. organizations can evaluate, use, or move beyond Willis Towers Watson salary benchmarking to build fair, market-aligned pay structures. We compare the established WTW survey methodology with modern compensation intelligence platforms like SalaryCube that offer real-time salary data without survey participation requirements. This content is designed for heads of HR, compensation managers, and total rewards leaders at mid-market and enterprise organizations evaluating their benchmarking options and workflows—not for individual job seekers. Tower Watson salary benchmarking works through a survey-based model where participating employers submit detailed compensation data, which WTW aggregates, validates, and publishes on annual or biannual cycles.

For organizations needing faster access to U.S.-specific market data or pricing hybrid roles that don’t fit legacy job catalogs, real-time compensation intelligence platforms such as SalaryCube can supplement or replace traditional survey approaches. How Tower Watson salary benchmarking actually works and why it became an industry standard Key strengths and limitations of WTW salary surveys for modern compensation strategy With cost containment a looming influence, new research finds that when it comes to salary increase budgets for 2026, few organizations are planning any big changes. WTW’s most recent Salary Budget Planning Report uncovered that the average salary increase budgets for U.S. companies are expected to remain flat next year at 3.5%, the same as the actual budgets of 2025.

WTW’s Rewards Data Intelligence practice conducted the survey this spring across 157 countries worldwide, with more than 29,128 responses, including nearly 1,600 from the U.S. While most organizations weren’t anticipating a change in budget, according to WTW’s Brittany Innes, director, Rewards Data Intelligence, 31% of those surveyed are projecting lower salary increase budgets than last year. Of those, the most common reasons cited include an anticipated recession or weaker financial results and concerns related to cost management. Of the minority projecting higher salary increase budgets, most pointed to tight labor markets and inflationary pressures. Even without big salary increases, employees are staying put. According to WTW, fewer organizations this year found employee stability challenging compared to the past two years.

Less than one-third of organizations (30%) reported difficulty attracting or retaining employees, representing a decrease of 11 percentage points since 2023.

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