In the UAE, amid intensifying competition to retain top talent, several companies are introducing long-term incentives (LTIs) like stock options and performance-based rewards for their employees. Recruitment industry leaders note that some employers are also offering tailored packages, including personalized wellness programs, flexible retirement options, and education allowances. Importantly, these LTIs are now being extended beyond C-suite executives to include other managerial staff as well.
As previously reported by Khaleej Times, UAE firms are increasingly focusing on bonuses and allowances rather than raising basic salaries to retain talent. Jack Khabbaz, managing partner at Cooper Fitch, explains that long-term incentive plans (LTIPs) are typically for CEOs and may also be available for C-suite executives in publicly listed entities or startups. These plans can include a mix of cash, equity, or stock options, typically equivalent to 1-5 years of annual fixed salary, depending on the company's type and business cycle.
According to a 2024 survey by Cooper Fitch, 52% of CEOs have received long-term incentives. Deeksha Gandotra, managing director at Très Versatile, highlights that companies are offering LTIs such as flexible working arrangements, summer work-from-abroad options, and positive office cultures to retain top talent. She notes that the prevalence of these incentives has significantly increased post-Covid-19, especially in startups and tech sectors.
Chandy Philip, CFO at Tasc Group, mentions that popular LTIs include restricted stock units and stock options, which tie employee success to company growth. Performance-based LTIs are also becoming more common, with rewards linked directly to achieving specific goals. Additionally, companies are enhancing retention efforts with substantial bonuses, promotion opportunities, and flexible working arrangements.
Philip further adds that LTIs are no longer exclusive to C-suite executives and senior management but are being expanded to include mid-level managers and key talent. This expansion aims to foster a culture of ownership and long-term thinking, driving overall success and employee engagement. Deeksha Gandotra confirms that LTIs are effective in retaining top talent by aligning employees' interests with the company’s long-term success, reducing turnover among key executives and senior managers.
