Tailoring total rewards packages to reflect more globalized realities and compensation trends can help businesses get ahead, according to Deel’s 2025 State of Global Compensation report, with equity data from Carta.
As industries grapple with mounting global challenges, the ability to attract and retain top talent is more critical than ever. Confronted with inflation, persistent pay gaps, and rapid advances in technology, leaders are reimagining compensation to remain competitive. New research by payroll and HR platform Deel suggests that ownership and equity could be the differentiators in the talent race—especially for high-demand roles in AI and machine learning (ML).
“[Our] findings show that total compensation, particularly equity, is steadily increasing for highly skilled technical talent worldwide,” says Jessica Pillow, head of global compensation, Deel. “Median equity grants for engineers as a share of company ownership have grown consistently from 2021 to 2025, with especially strong acceleration in emerging markets, such as Brazil and India. At the same time, we’re seeing the emergence of specialized AI positions that command 20% to 25% of a premium above base compensation levels due to a lack of established benchmarks.”
The U.S. continues to lead in both base compensation and total equity package size, followed by Canada and France, according to the 2025 State of Global Compensation report. At the same time, companies with employees in hotspots such as Turkey and Argentina are making smaller, more frequent pay adjustments to keep pace with hyperinflation and rapid economic shifts. Data further reveals that, still, more firms are using one-time lump sum cash payments instead of compounding increases on base pay to avoid long-term financial commitments.
“As equity grants grow as a share of company ownership across markets, HR teams can succeed by designing more robust packages that integrate short-term cash rewards with long-term equity incentives,” notes Pillow “This approach helps companies remain competitive for top talent without overextending fixed payroll costs during times of greater uncertainty.” Collectively, the shift in thinking is changing how companies from scrappy startups to Fortune 100 giants design compensation packages and attract new hires. Clearly, equity is no longer a perk, [but rather a necessity] and is increasingly becoming a leading differentiator that can tip the scales for a job candidate weighing multiple offers.”
Historically, equity-based compensation models were primarily seen in startups and generally offered as a way to offset lower base salaries. But today, even Fortune 500 giants are expanding their equity compensation offerings, significantly boosting the size and frequency of grants for technical hires. Not only do today’s most in-demand technology leaders now command higher salaries, but they also ask for 10% to 20% more equity when compared with other potential hires.
“The emergence of specialized AI positions reflects a pattern similar to the data science boom eight to 10 years ago, with organizations now creating highly targeted AI roles specific to functions such as finance, HR, and product,” says Pillow. “These specialized roles in AI, cybersecurity, and digital marketing command 20% to 25% premiums above base compensation levels. That said, AI and ML engineer salaries are climbing at companies of all sizes, with top earners seeing the biggest jumps as competition for specialized talent heats up.”
Such developments only make sense given the currently astronomical valuations and revenue projections tied to many of today’s increasingly AI-powered enterprises, whose technical employees now hold significant equity and command significant upside. It’s no surprise, then, that a growing number of engineers and data scientists see equity not just as part of a compensation plan but also as personal strategies for generating wealth. At the same time, an increase in remote and hybrid work is presenting prospective hires with more flexible options in terms of work locations, making operating setups another area of negotiation for employers.
As a result, talent is now clustering in nontraditional locations such as the Netherlands, Spain, Singapore, the U.K., and Canada. The shift is partly driven by new visa types specifically created for remote and freelance work, creating upticks in contractor numbers in these markets. Noting this, experts now advise looking at talent recruitment and retention strategies from a global perspective and designing more regionalized and informed total compensation packages to match.
“Equity has moved from a nice-to-have to an expected benefit for employees in certain areas,” explains Pillow. “The U.S. leads in equity packages, with Canada and France increasing theirs. That said, the Netherlands and U.K. are going the other way, illustrating how equity strategies don’t always translate across borders. This variation underscores the need for market-specific equity benchmarks. For example, companies can leverage larger ownership stakes in emerging markets such as Brazil and India, where equity is increasingly valued as part of total compensation. Early-stage startups in particular are boosting equity and salaries significantly to attract top AI talent, despite comparatively smaller corporate valuations.”
With offers now highly customized to roles, regions, and responsibilities, it’s imperative for HR professionals to be informed. For example, Deel and Carta’s 2025 State of Global Compensation report reveals that younger workers in emerging markets are increasingly valuing equity as part of total compensation. But findings also remind just how much Gen Z leaders prioritize work flexibility and location independence on top of monetary compensation. “The data shows that total compensation strategies must be market-specific,” says Pillow. “Norms vary greatly from country to country, meaning that companies should diversify compensation strategies by geography and employment type to meet hiring goals.”
Attracting and holding onto today’s top talent demands that companies take a more multidimensional approach to compensation, blending salary and equity to create more personalized and market-specific packages. It’s only becoming more important to have these conversations in the boardroom today, as going forward, pay transparency regulations will only continue expanding. Organizations that use data and intelligence to build defensible, transparent compensation structures will be positioned to have productive conversations about pay rather than defensive ones. “By way of contrast, companies that treat compensation more opaquely will lose talent to competitors who respect employees enough to show them how decisions are made.”
The bottom line being that designing effective compensation strategies isn’t just about giving more stock to more people. It’s about being more forthcoming about compensation levels and tailoring total rewards packages to reflect more globalized realities and strategic goals.
“Start by understanding that the highest compensation levels remain concentrated,” says Pillow. “Canada, the U.S., and the U.K. continue to lead across job categories, with Sweden and Norway demonstrating comparable levels. However, our expanded country coverage also reveals opportunities in markets where contractor models dominate, such as Argentina, Mexico, and Brazil. HR leaders should also pay close attention to gender pay equity. The most significant challenge is a lack of female representation in leadership positions. Given that salaries at the 90th percentile are growing faster than median pay across AI and ML roles, it’s also essential to conduct proactive salary reviews and implement targeted retention strategies for high-performing engineers in specialized fields.”