In a recent LinkedIn post, Disha Pai delves into common pitfalls companies face when benchmarking executive compensation in Saudi Arabia, drawing on her extensive experience reviewing data from over 200 executive placements in the region over the past three years.
Pai argues that many organizations are using outdated or inaccurate baselines for their compensation strategies. She states:
“Most companies are benchmarking against the wrong baseline.”
According to Pai, typical benchmarking practices often rely on internal pay scales, general regional industry standards, or subjective assessments of what might be “competitive.” However, she contends that these methods fail to capture the true dynamics of the current market, particularly within Saudi Arabia’s rapidly transforming sectors.
Misaligned Benchmarks and Market Realities
Disha Pai highlights a significant disconnect between standard benchmarks and the actual market value for key executive roles involved in the Kingdom’s transformation initiatives. She points out specific areas where premiums are evident:
- COO roles are commanding salaries 20-30% higher than standard benchmarks.
- CFO positions in manufacturing, especially those with transformation experience, are seeing a 25-35% premium.
- Digital transformation leadership roles are experiencing premiums exceeding 40% due to acute scarcity.
Pai explains the underlying reason for this gap is a fundamental supply-demand imbalance. The expertise required for these transformative roles is in short supply, a reality that both companies and executives are keenly aware of.
The Scarcity Premium
As Disha Pai notes, the scarcity of transformation-ready executives is driving up compensation expectations. This scarcity means that companies attempting to secure top talent must offer more than just a standard competitive package. She elaborates:
“Transformation-ready executives are scarce. Companies know it. Executives know it.”
In Pai’s view, organizations that are successfully attracting and retaining top executive talent in the current Saudi Arabian market are not relying on conventional benchmarking. Instead, they are aligning their offers with the demonstrable market value of these in-demand skills and experiences.
Competing for Talent
The core of Pai’s message is that effective talent acquisition in Saudi Arabia’s dynamic transformation sectors requires a more sophisticated approach to compensation. Simply looking at what a company currently pays or what the broader industry average is insufficient.
Pai asserts:
“The companies winning talent right now aren’t competing on standard benchmarks. They’re competing with offers that reflect actual market value.”
This perspective underscores the need for businesses to conduct thorough market analysis, understanding the specific premiums associated with specialized skills and the current demand-supply equation. By doing so, companies can develop compensation strategies that are not only competitive but also accurately reflect the true value of the executive talent they seek.
Disha Pai’s analysis serves as a crucial reminder for businesses operating in or expanding into Saudi Arabia’s growth sectors: understanding and adapting to the real market value of executive talent is paramount for success in attracting and securing leadership essential for transformation.
📝 About This Content
This article is based on insights shared by Disha Pai on LinkedIn.
📅 Originally posted on July 15, 2026 | View original post on LinkedIn →