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Sep 2026

2026 Compensation Trends Study

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Base pay, bonus and long-term incentive benchmarks from 218 architecture, engineering and construction firms.

FMI's 2026 Compensation Trends Study reports what 218 AEC firms pay and how they decide. Respondents average $1 billion in annual revenue and answered in February 2026. It covers salary increase budgets, short-term incentives (STIs, or bonuses), long-term incentives (LTIs), pay communication and a topic new this year: mobility and travel pay. Use it to test your numbers against the market before your next planning cycle.

What's Inside

  • Salary increase benchmarks. Firms expect a 4.3% average base pay increase, and the highest reported was 12.3%. See averages and highs by segment, plus the mix of merit, promotional, market and cost-of-living adjustment (COLA) raises budgeted for 2026.
  • The pay strategy gap. Only 45% of firms have a formal compensation philosophy, though 78% have set base pay ranges. See how the firms with a formal plan build, update and communicate theirs.
  • Short-term incentive design. Nearly all firms (94%) offer STIs. Compare plan types, eligibility by role and how much of a payout managers control.
  • Long-term incentive adoption. More than half of firms (55%) now offer LTIs, a first in this survey, and 71% call them effective. Compare deferred cash, phantom stock and restricted stock, and see why retention drives most plans.
  • Travel and mobility pay. Around 58% of firms send employees on the road, but only 28% have an established travel policy. See how firms set per diems, housing and travel premiums across short- and long-term assignments.

Managing talent in this environment requires a shift in perspective, considering compensation as an investment rather than a cost.

The full study breaks the numbers out by segment, firm size and ownership type. Written for CFOs, HR and compensation leaders, and owners in the built environment.