As boards prepare for 2026, reward season is looming large. With economic uncertainty in the UK and globally, strategic planning around pay and performance is even more important. RemCo Chairs will be in deep conversation with their boards, and Chief People Officers (CPOs) have a critical role to play in shaping the agenda.
The updated UK Corporate Governance Code puts remuneration under the spotlight, but this isn’t just about base pay. HR leaders need to arrive at the table prepared with data, insights, and a clear strategy. Heads of Reward have a key role in supporting their CHRO.
The Reward Season Big Five
1. Talent Attraction
Do we know how competitive our reward structures are, and can we evidence this to the board?
- Engage early with investors: Shareholder scrutiny of executive pay is only intensifying.
- Do we know how competitive our reward structures are, and can we evidence this to the board?
- Benchmark smartly: Are pay bands narrow enough? Do you know how you compare year-on-year against competitors?
- Balance pay and performance: RemCos must design competitive packages that align with company strategy and values.
2. Pay Disparity & Reputation
Are we prepared to defend pay equity and avoid reputational risk?
- Stay transparent: early shareholder engagement can help avoid surprises.
- Prepare for scrutiny: Ethnicity and disability pay gap reporting, alongside gender, is in the spotlight.
- Protect brand equity: A clear narrative on fairness and inclusion is essential for employee trust and shareholder confidence.
3. Innovative & Tailored Plans
Are our reward plans appropriate, flexible, and innovative enough to attract and retain the best people?
- Move beyond “standard”: Bespoke, flexible packages are increasingly expected.
- Hybrid matters: a large proportion of senior executives ask about flexible working in their first conversation with a headhunter.
- Be transparent: Avoid reputational risk by engaging proactively with shareholders and linking packages to company values.
4. Succession Planning
Are we giving the board confidence that talent pipelines are strong and succession risks are minimised?
- Reduce cost of churn: Strong pipelines ease pressure on pay decisions.
- Collaborate with CPOs: Highlighting high-potential internal successors reassures the Board.
- Plan now for later: Effective succession planning pays dividends in reward discussions.
5. ESG and Shareholder Expectations
Can we clearly demonstrate progress on diversity and sustainability, and link this to reward strategy?
- Walk the talk: Annual reports and policies are being scrutinised more than ever.
- Attract talent through purpose: Candidates increasingly look for values alignment as well as financial reward.
- Reward season is a fine balancing act. Preparation, transparency, and alignment to strategy are non-negotiable. Boards, shareholders, employees, and the media are all watching closely.
Savannah can help you ensure you have the pipelines, data and insight for the season ahead. Contact us.
