Alysse Merila
Paige Thaler
Gianna Marrone
Nadia Atton
As consumer packaged goods (CPG) companies navigate shifting consumer preferences, pressure on growth and margins, and ongoing economic uncertainty, executive incentive programs continue to emphasize financial performance while adapting to evolving business priorities.
Meridian Compensation Partners’ 2026 Consumer Packaged Goods Incentive Trends Report examines annual and long-term incentive practices at 45 CPG companies, highlighting key trends, common design approaches, and differences from the broader market.
Key findings include:
• Financial performance remains the priority. Revenue and profitability measures dominate annual incentive plans, with most companies using two to three weighted financial metrics.
• Non-financial metrics play a smaller role. Just 53% of CPG companies incorporate non-financial measures or modifiers, compared with approximately 80% across general industry.
• Performance-based equity anchors long-term incentives. 91% of companies use performance-based equity, with relative total shareholder return (rTSR) remaining the most prevalent performance measure.
• Incentive payouts remain near target. Average annual incentive payouts reached 101% of target for 2025, while long-term incentive payouts averaged 106% for the 2023–2025 performance cycle.
The report also explores emerging trends in performance measurement, payout structures, and long-term incentive design as companies look to align executive compensation with changing business priorities.
Download the full report summary for a closer look at CPG incentive design practices and how they compare with the broader market.
