TSX60 Research - Short-Term Incentive Plans

This article builds on our Executive Pay Insights from June, drawing on disclosed 2025 compensation from TSX60 companies to examine how plans paid out, how scorecards and metrics are evolving, and how boards are using discretion to shape outcomes and new plan features to drive specific initiatives/transformation.

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Year-Over-Year Snapshot – How Short-Term Incentive (STI) Plans

Changed in 2025 Strong business performance once again translated into above-target STI payouts across the TSX60. Energy continued to lead the index, while Financial Services posted the largest year-over-year rebound as the major banks recovered from a weaker 2024. Most TSX60 companies paid above target for the CEO, with only eight paying out below target out of those that disclosed.

Overall, STI design remained relatively stable in 2025, with companies continuing to make incremental refinements rather than wholesale changes. Additive plans remained the market standard, while multiplicative designs were relatively less common.

Organizations continued to place greater emphasis on corporate performance for executives (80%+), reinforcing a broader focus on collective accountability. Scorecards became slightly more streamlined, but continued to maintain a strong weighting toward financial metrics (~67%).