Reports & Benchmarking
2026 Total Compensation & Benefits Executive Report
Discover how high‑growth companies are rethinking compensation, equity, and benefits in 2026 to stay competitive
In our 2026 Total Compensation & Benefits Executive Report Sequoia shares how companies are navigating rising healthcare costs, fast-evolving AI-driven talent needs, and shifting employee expectations by rebalancing how they deploy cash, equity, and benefits.
Explore the trends:
- AI is reshaping compensation strategies
- Equity is evolving toward RSUs and tighter eligibility
- Short-term incentives are surging
- Employers are shouldering rising benefit costs
Get the Report
Please submit the following information to access the report.
We are committed to your privacy.
Your Report Is Ready!
We have sent a link to your inbox and you can also click below to open the report and start reviewing.
2026 Total Compensation & Benefits Executive Report
Having trouble receiving your resource at the email address provided?
Don’t forget to check your spam folder. If you still haven’t received your guide and you entered your email address correctly, please reach out to [email protected].
AI reshapes compensation strategies
- AI/ML companies concentrate merit increases on high impact technical roles (engineers, researchers, and ML experts) rather than distributing increases evenly across the org.
- Cash becomes the primary retention lever as equity becomes harder to deploy broadly and its value becomes less predictable.
- Early-stage AI companies rely on aggressive cash and equity upfront, adding structure only as they scale.
Equity evolves toward RSUs and tighter eligibility
- Companies are reducing option only grants and shifting toward multivehicle LTIs, especially for executives, using mixes of RSUs, options, and performance shares.
- RSUs show rapid adoption earlier in company lifecycles due to their clearer, more predictable value in volatile markets.
- Refresh grants are shrinking dramatically, with large refreshes nearly disappearing as companies tighten ongoing equity spend.
Short-term incentives surge
- Short-term incentives are expanding rapidly into smaller and earlier stage companies, with ~75% of 50–99employee companies offering them by 2026.
- Spot bonuses are growing fastest for nonexecutive roles, particularly professional and support levels.
- Employees increasingly expect immediate, flexible rewards to complement long-term equity, pushing companies to rebalance their incentive mix.
Employers shoulder rising benefit costs
- Companies absorbed the majority of steep 2026 medical renewal increases instead of shifting costs to employees.
- Even family coverage saw employers take on larger cost increases, with employee contributions rising only modestly for popular plans.
- Despite economic pressure, employers continued investing in wellbeing programs and expanded adoption of 401(k) matching across all company sizes.
