80% of CEOs Secure Bonuses Indicating Economic Trust

80% of CEOs Receive Bonuses: Economic Trust Indicator?

In the United Arab Emirates (UAE), company executives' compensation remains a strong indicator of economic stability and trust in leadership. A recent survey shows that more than 80 percent of CEOs received an annual performance bonus, clearly demonstrating that companies are still willing to invest in retaining top management.

Stable or Increasing Bonuses: Confidence in the Future

According to the survey, a significant portion of companies operating in the UAE provide stable or increasing bonuses to their executives. The most common bonus range equaled 1-3 months of annual salary, applicable to 43.3 percent of CEOs. Although the dynamics of increases have somewhat slowed—while 56 percent reported bonus increases in 2024, this proportion fell to 46 percent this year—the bonus system remains a key incentive element.

Performance-Based Payments Dominate

In the UAE and Saudi Arabia, about 83 percent of CEOs receive or anticipate receiving performance-based benefits. This shows that companies reward their leaders not just for loyalty but after achieving measurable business results. Moreover, forecasts suggest that in 2025, 20 percent of executives expect bonuses 10-20 percent higher than the previous year.

Preference for External Leaders: Global Experience Valued

In the region, particularly in the UAE, there is a growing trend of companies hiring external CEOs—even from other countries—who have both industry and international experience. This is because many companies see external leaders, who bring fresh perspectives, as the engines of growth, even if their internal succession system is operational. This trend reflects a strategic transformation in top executive appointments.

Succession Planning: Still Lacking

While more companies in the UAE are developing structured CEO succession plans, 39 percent still lack such a formal process. This could pose a challenge in the long term, especially in a rapidly changing economic environment. In contrast, in other parts of the region, such as Saudi Arabia, companies are more likely to select the Chief Operating Officer (COO) as an internal successor and are inclined to promote leaders from within.

The Biggest Obstacle: Talent Competition

One of the biggest challenges in the UAE and the region is finding and retaining qualified professionals. According to data, 41 percent of UAE CEOs, and 45 percent in Saudi Arabia, view this as the most significant obstacle to growth. The competition for exceptional talent is intense, and companies in the region must offer attractive packages to retain or attract top professionals.

Moderate but Optimistic Growth Prospects

A significant portion of leaders expects moderate but stable growth: 35 percent anticipate 11-20 percent expansion, while 29 percent expect 5-10 percent growth by 2025. This supports the notion that economic players in the UAE are not only confident in the future but also planning realistically while maintaining strategic flexibility.

Summary

CEO bonuses are not just financial rewards—they are significant feedback on how companies evaluate their top executives' performance and how much trust they place in the future. In the UAE, the strengthening bonus system, openness to external leaders, and strategic responses to challenges all demonstrate that economic leaders take growth seriously—and are willing to pay those who achieve their goals.