Companies will ringfence talent through new approaches: Quess Corp executive chairman Ajit Issac

While salary increases may be plateauing, retaining and attracting top talent remains a critical battleground. Companies are recognising the need to move beyond traditional salary hikes and explore innovative forms of compensation in a bid to tackle the salary dilemma. In the coming year/s, the emerging dynamic duo of restricted stock units (RSUs) and performance-linked plans will gain traction.

Many companies are pivoting away from solely relying on traditional stock options and integrating RSUs as a prominent compensation component that grants direct ownership in the company. This fosters a sense of shared success, thereby aligning executives’ interests with shareholders for sustainable growth.

Linking RSUs to results, however, is not just about ownership. Companies are tying RSUs to performance metrics, like increasing EPS or EBITDA. This incentivises executives to go beyond the ordinary and focus on long-term value creation. Payouts can be significant, ranging from 25% to 50% of base pay linked to RSU performance, creating a compelling motivator for sustained, strategic growth. As compared to stock options, which can plummet in volatile markets, RSUs retain their inherent value, providing greater stability and confidence to executives. This element plays a vital role in attracting and retaining talent, especially when competing with larger firms where RSUs are already commonplace.


To further bolster the compensation game and retain top talent, firms will enhance their bespoke, holistic benefits offering models, to make the overall offering more lucrative. Companies are offering employees an unlimited leave policy to prioritise wellbeing and manage time during children’s board exams.

With medical inflation between 12% and 13%, companies are continuously looking to upgrade corporate health insurance. In conclusion, the ascent of RSUs and performance-linked plans signify a key transformation in the realm of compensation, especially in challenging economic times. This strategic alignment of executive interests with long-term value creation, coupled with the provision of augmented benefits extending beyond mere monetary compensation, will be the norm rather than an exception.