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Executive Pay Lessons From 2025—Financier Worldwide Magazine

August 14, 2025

Citing Farient Advisors’ data, Financier Worldwide magazine examines key takeaways from the 2025 North American proxy season and the priorities boards should consider for the year ahead. While say-on-pay support for Russell 3000 and S&P 500 companies remains strong—averaging close to 90%—companies falling below 80% often face increased investor scrutiny, particularly when one-time grants or weak pay-for-performance alignment are involved. Other trends likely to shape governance agendas include a sharp drop in DEI metrics in incentive plans, heightened focus on executive perks, and new SEC rules that may limit investor engagement.

Farient’s data reveals that S&P 500 companies using DEI metrics in executive compensation fell from 57% in 2023 to just 22% in 2025, driven by political, legal, and shareholder pressures. Farient also notes that perks such as executive air travel and security costs are drawing more attention from both investors and regulators, underscoring the importance of robust disclosure and benchmarking against peers. The firm advises boards to engage early with shareholders, pressure-test pay plans, and ensure that program design aligns with evolving investor expectations heading into 2026.

About Farient Advisors

Farient Advisors LLC is an independent premier executive compensation, performance, and corporate governance consultancy. Farient provides a full array of services, linking business strategy to compensation through a tailored, analytically rigorous, and collaborative approach. Farient has locations in Los Angeles, New York, and London and works with clients globally through its partnership in the Global Governance and Executive Compensation (GECN) Group. Farient is a certified diverse company and is recognized by the Women’s Business Enterprise National Council.

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Executive Pay Lessons From 2025—Financier Worldwide Magazine

August 14, 2025

About Farient Advisors

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