UAE companies — along with Saudi firms — are getting more creative with compensation amid rising competition for talent, with more firms offering both short-term and long-term incentive (LTIPs) plans, the National reports, citing Cooper Fitch’s 2025 CEO report. Long-term incentives in particular, which are typically structured as bonuses, equity, shares or stock options, are being used to retain C-level executives — especially those leading companies on their expansion journeys.

Short-term bonuses were the most common approach last year: Nearly half — 44% — of organizations offered 1-2 months’ salary as the most common bonus payout for executives — a cautious approach many companies took amid economic challenges, according to Cooper Fitch 2025 UAE Bonus report (pdf). 23% of companies offered 3-5 months’ salary bonuses, while 25% of senior leadership received similar payouts. 28% of organizations offered no bonuses at all.

But more companies are shifting towards additional long-term incentive plans: While short-term bonuses are currently more prevalent, 35.5% of CEOs in the UAE are benefiting from LTIPs. Publicly-listed companies are leading the way, offering 12 to 24 months’ salary in LTIPs, compared to private sector companies, which are adopting these plans at a slower pace, managing partner and head of CEO practice at Cooper Fitch Jack Khabbaz told The National.

That’s less than what most peers in Saudi Arabia are getting: Some 56.5% of Saudi CEOs benefit from LTIPs, compared to 35.5% in the UAE, The National reports. Notably, 18% of Saudi CEOs receive bonuses equivalent to 9-12 months’ salary—far exceeding the UAE’s standard of 3-5 months’ salary for annual bonuses. This trend is driven by the kingdom’s mega projects and large-scale business transformation initiatives, which require long-term leadership commitments.

If you’re in tech, energy, healthcare banking, or consulting, you’re lucky: These industries are getting the highest payouts, according to the report. On the other hand, sectors such as aviation, government, and retail adopted a more cautious approach on the back of challenges like budget constraints and market uncertainties, leading to more conservative bonus practices.

Looking ahead at 2025, some 45-46% of UAE CEOs are expecting an incremental increase in their bonuses for 2025, with expected growth ranging from 5% and 20%, likely driven by product and service expansion, as well as digital transformation, Khabbaz told Dubai Eye (watch, runtime: 8:11).

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