The Growing Importance of “Wellbeing” Incentives in Executive Compensation

We know that in today’s high-stress corporate environment, focus on employee wellbeing is essential for attracting and retaining top talent. Many companies are exploring innovative ways to incorporate wellbeing incentives into executive compensation packages.

On the list is:

  • Fitness/health club memberships or subsidies
  • Mental health counseling benefits
  • Extended parental leave policies
  • Sabbaticals or personal development opportunities
  • Flexible work arrangements

Prioritizing wellbeing signals a commitment to support the whole person, not just the professional. This can foster higher engagement, productivity, and loyalty among executives who may feel burnt out or torn between work and personal responsibilities.

However, designing and implementing these incentives requires careful strategizing. Consider tax implications, equitable access across different executive roles/levels, and tying incentives to measurable outcomes that benefit both the individual and the organization.

As an executive compensation lawyer, I’m interested in hearing from leaders about their experiences and best practices around wellbeing incentives. Let’s discuss ways to promote sustainable high performance through a more holistic approach to executive compensation.