Sequoia
Sequoia
Reports & Benchmarking

2026 Compensation & Equity Trends Report

Discover how companies are adapting comp strategies in a tighter market

Investor‑backed companies are adjusting their compensation mix as valuations settle at lower levels, funding cycles lengthen, and equity becomes harder to use as a broad‑based retention tool. This report offers a year‑over‑year look at how leaders are rebalancing incentives and merit planning to build more disciplined and predictable programs without losing sight of competitiveness or retention.

Explore the trends:

  • Programs are tightening while keeping new‑hire grants competitive
  • Short‑term incentives are gaining more weight
  • Spot bonuses and clearer performance gates are gaining traction
  • Structured merit cycles are appearing earlier in company lifecycles
  • And more →

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Boards are more selective on refresh grants at earlier valuations

  • Refresh grants are getting smaller, less frequent, and more targeted
  • Fewer companies at lower valuations are offering executives refresh grants
  • Refresh grants are being approved mainly when there’s clear business impact or a real retention need
  • Download the report to see where executive refresh prevalence has shifted by valuation over time

Annual bonuses expand where impact is highest

  • Annual bonuses, which are tied to performance metrics that drive company growth, have seen modest increases across most roles
  • Download the report to see how short-term incentive eligibility has changed year over year by role
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As more companies formalize merit cycles, off-cycle increases are becoming less common

  • While more companies move to structured annual merit cycles, ad‑hoc increases are dropping off. The result is steadier expectations for employees and more predictable payroll planning for leadership.
  • Download the report to ee how off‑cycle increases have declined year over year by headcount.