From the perspective of an employee, equity compensation can be more tax efficient compared to full cash payouts
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Jirapong Manustrong
As Global Capability Centres go on the hunt to secure top tier talent, there has been an evolution in the compensation structures for senior leaders and management within these organisations.
As per a latest report from GCC consulting firm UnearthIQ, a significant portion of GCCs are now offering long term incentives such as Employee Stock Ownership Plans (ESOP), restricted stock units and performance shares as part of their total compensation package.
The report, based on MCA filings and interviews with top GCC executives, stated that around 55-65 per cent of large GCCs ( parent business of revenue over $5 billion) are now offering ESOP Equity-related payouts as part of their total compensation.
The share is slightly lower for mid-market ($2 billion -$5billion )and Nano GCCs (sub $1 billion) with 45-55 per cent and 30-34 per cent of such firms offering these benefits.
It added that such benefits often play a big role in inflated reported compensations and high salary packages with stock payouts contributing to about 10–20 per cent of the median CTC.
Overall, the report found that the compensation for leaders in large GCCs are in the range of $0.5-$1 million while for mid market and Nano GCCs, they are in the range of $0.25-$0.62 million and $0.16-$0.25 million, respectively.
According to Aditya Narayan Mishra, Managing Director and CEO of HR firm CIEL HR, the increase in stock-linked payouts is primarily driven by the demand to retain top tier talent.
“With the number of GCCs increasing there is a pressure to secure and keep the best talent. To redeem these options employees will have to stay with the company for a fixed period of time. So people who are trying to leave in one and a half years will stay for at least two years,” he said.
Moreover, he added, such structures help firms in managing upfront costs by splitting compensation into fixed pay and stock-linked incentives reducing immediate cash outflow while deferring part of employee costs into the future.
From the perspective of an employee, equity compensation can be more tax efficient compared to full cash payouts.
Published on March 17, 2026
