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New research by executive compensation advisory firm Pearl Meyer projects many organizations will slightly pull back on their salary increases for top leaders in 2026.

The annual study also cited a restrained use of discretion in incentive payouts and a notable pullback in standalone diversity, equity and inclusion (DEI) and environmental, social and governance (ESG) incentive plan metrics. Board representatives and employees from 248 organizations, spanning ownership types and industries, responded to this year’s survey.

In an interview with Workspan Daily (WD), Bill Reilly, Pearl Meyer’s managing editor and survey author, shared further insights on expected changes in salary budgets, short- and long-term incentive plans, pay positioning, and governance practices...

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