NFP Finds Succession Planning Support Vital for Executive Benefits

Most organizations are concerned about losing their key leaders, yet many have not developed executive benefit strategies to support future leadership transitions, according to NFP, an Aon company.

The “2026 NFP U.S. Executive Benefits Trend Report” found that representatives from 81% of surveyed organizations said they cannot afford to lose their top talent, yet one in five said their executive benefits strategies still fall short on flexibility.

“Executive benefits are becoming part of a much bigger conversation,” wrote Tony Greene, president of NFP’s executive benefits division, in an email to PLANADVISER. “For years, these programs were primarily about retention. That’s still important, but employers are increasingly thinking about leadership transitions and the long-term success of the organization.”

Succession planning is becoming a growing priority, with 62% of employers saying planning for employees in key leadership roles will be a major focus as those employees approach retirement. Yet 49% of employers reported that they have not implemented any executive benefits strategies to support leadership transitions. Additionally, the report found that 71% of organizations do not explicitly design executive benefits around succession planning.

“The first thing advisers can do is help organizations identify their key people,” Greene wrote. “The most effective approach is planning years in advance. It starts with understanding what the organization is trying to accomplish and who they are trying to protect.”

Retention remains the primary driver of executive benefits decisions. According to the report, employee retention was the top factor influencing the offering of executive benefits strategies both in the past year (54%) and for the year ahead (56%). Succession planning and leadership continuity ranked second, cited by 47% of employers over the past year and 45% looking ahead.

Representatives from nearly all organizations surveyed said executive benefits have helped retain top talent, with 99% reporting success on that front. Another 94% said similar benefits have been effective in attracting key employees.

The report noted that organizations are increasingly moving beyond using executive benefits solely as retention tools and are instead incorporating them into broader workforce planning efforts. Deferred compensation plans, for example, are increasingly being used to support leadership continuity, tax planning and long-term workforce flexibility.

“For advisers, the conversation shouldn’t start with a product,” Greene wrote. “It should start with understanding who drives value inside the organization and what happens if those people leave.”

Succession Planning Within Financial Services

Financial services employers face many of the same workforce pressures as organizations in other industries, but often at a greater intensity, according to NFP’s report: 71% of financial services employers anticipate an increased focus on succession planning within executive and leadership benefits programs, compared with 51% of employers in other industries.

Financial services firms also placed greater emphasis on both retaining key employees and ensuring leadership continuity: 69% of financial services organizations cited succession planning and leadership continuity as a leading influence on executive benefits decisions during the past year, compared with 43% among employers in other industries.

Despite that heightened focus, many firms have yet to formalize transition strategies. More than half of financial services employers (54%) reported they have not implemented intentional executive benefits strategies to support leadership transitions.

According to NFP, the findings suggest that many organizations recognize the importance of leadership continuity, but continue to rely on executive benefits programs designed primarily for retention, rather than for long-term planning.