In its latest report, NFP examines how employers are adjusting executive benefits strategies in the context of economic uncertainty and demographic changes in the workforce.
The 2025 US Executive Compensation and Benefits Trend Report highlights the impact of baby boomers approaching retirement, creating gaps in leadership and institutional knowledge that influence succession planning.
Tony Greene (pictured above), president of NFP’s Executive Benefits division, said 85% of employers recognize they cannot afford to lose top talent. He noted that the departure of baby boomers is prompting organizations to focus on developing future leaders.
“Talent and succession planning have become a business continuity issue,” Greene said.
The survey found that 97% of respondents expressed concern about the economy. NFP’s report said this environment is driving employers to rebalance executive compensation structures to meet both employee expectations and overall business sustainability.
One in five respondents indicated they plan to alter the amount or type of executive benefits due to economic conditions.
"Although retention remains a top priority, financial discipline has regained equal footing as a strategic consideration," Greene said.
Broader employee benefits priorities are also shaping executive compensation strategies. According to Brown & Brown’s own survey, 65% of employers view attracting and retaining a competitive workforce as the top priority for health benefit programs.
Cost management follows closely, with 62% citing employee health benefit expenses and 60% focusing on overall organizational health costs.
Employers are expanding support in areas such as mental health, provider access, fertility, and disability coverage, while also introducing measures like pharmacy and medical RFPs, virtual care services, and targeted coverage adjustments to balance affordability with access.
These shifts in health benefits strategy intersect with executive compensation planning, as organizations aim to present cohesive, competitive total rewards packages.
NFP’s report also addressed a gap in benefits comprehension among executives. Nearly three in five executives (57%) are delaying retirement, though extended careers do not always lead to better preparation. Only 29% of respondents said they fully understand their benefits.
Greene said benefits have greater impact when employees understand them, and that improving financial literacy, offering access to professionals, and simplifying communication can help increase engagement and loyalty.
Nonqualified deferred compensation plans (NQDCPs) remain a central part of many companies’ executive benefits strategies. According to NFP’s findings, 68% of respondents use NQDCPs for retention, 53% to stay competitive with peers, and 52% to help participants save for retirement.
The report said 87% of plan participants are satisfied with how these plans support retirement preparedness. Greene said NQDCPs combine cost efficiency for employers with tax advantages for participants, and that inflation and potential changes in tax rates are prompting more executives to increase their participation.
“Employers have an opportunity to make participation easier through clear communication and onboarding tools, and the ones that get this right will gain a lasting competitive edge,” he said.
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