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Over the last few years, the artificial intelligence (AI) boom has swept through corporate America. Across nearly every function and team, AI is being adopted to boost productivity and gain a competitive edge through every available avenue. As a result, employees, particularly executives, are increasingly expected to identify new ways to drive efficiency and improve results through AI-enabled strategies.
As compensation committees evaluate the performance goals used in executive pay programs, AI-focused performance objectives are becoming more common in incentive plan design. In this post, Equilar examines corporate disclosures that highlight how companies are implementing AI into executive compensation programs today.
Most companies that have incorporated AI metrics have done so within their annual incentive plans, but Qorvo is one of the few exceptions. The Company disclosed a performance objective focused on the exploration and deployment of AI tools to enhance organizational productivity as part of its fiscal 2025 executive long-term incentive plan. Qorvo disclosed that the rationale for this objective was to enhance operational efficiencies and reduce costs. The objective was a standalone performance metric weighted at 20%. While this metric is part of Qorvo’s long-term incentive plan, it’s worth noting that the Company uses performance-based restricted stock units with an annual measurement, reflecting how the fast-moving nature of AI makes it difficult for companies to set multi-year targets.
Qorvo (QRVO) DEF 14A — Filed on June 26, 2025
As part of its executive annual incentive plan, Juniper Networks disclosed a strategic, standalone goal to win the AI opportunity, weighted at 10%. The Company defined this goal as executing against its strategy to capture opportunities in AI for networking and networking for AI, with a focus on AI clusters and data centers. Juniper links this objective to revenue growth.
Juniper Networks (JNPR) DEF 14A — Filed on April 16, 2025
Recursion Pharmaceuticals, which prides itself on using AI and data to enhance modern medicine, also featured an AI goal in its annual incentive program. The Company disclosed a goal to “lead the data and AI revolution that is transforming therapeutic R&D,” which was weighted at roughly 16.7%.
Recursion Pharmaceuticals (RXRX) DEF 14A — Filed on April 28, 2025
Another example of AI-focused performance goals in annual incentive plans comes from Cognizant Technology Solutions. The Company disclosed a goal tied to generative AI development and advancement in its fiscal year 2024 program and indicated it will include a similar objective in its 2025 annual cash incentive plan.
Cognizant Technology Solutions (CTSH) DEF 14A — Filed on April 18, 2025
While Ralph Lauren did not feature any AI metrics in its most recent executive incentive plan, the Company did announce that it plans to do so for fiscal year 2026. The Company disclosed that it plans to implement AI scorecard metrics that will replace citizenship and sustainability measures as the strategic goal modifier, using KPIs tied to key business priorities to drive executive AI literacy and enablement.
Ralph Lauren (RL) DEF 14A — Filed on June 20, 2025
While we’re still in the early stages of the AI boom, it’s becoming clear that companies are beginning to prioritize AI-focused performance goals in executive incentive programs. The most recent fiscal year featured a range of AI-related objectives, from winning the AI race within specific industries to driving stronger organizational efficiency, and this trend is likely to continue into 2026 plans and beyond.
Senior Director of Content & Communications
Amit Batish, Senior Director of Content & Communications, authored this post. Andrew Gordon, Senior Director of Research Services, provided data and analysis. Please contact Amit Batish at abatish@equilar.com for more information on Equilar research and data analysis.
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