Xactly Unveils 2026 State of Sales Compensation Report: Organizations Shift Toward 'Paying for Certainty' and Experienced Talent

SAN JOSE, Calif., February 11, 2026 - Xactly, a global leader in intelligent revenue solutions, today released its 2026 State of Sales Compensation: Benchmark Data & Behavioral Trends report. Based on Xactly's more than 20 years of proprietary data, the report examines how sales compensation has evolved over the past five years and highlights the key shifts shaping how organizations pay, motivate, and manage sales teams as leaders face mounting pressure to improve productivity, reduce ramp risk, and deliver predictable results.

The findings reveal a fundamental recalibration in sales compensation strategy driven by market volatility, rising productivity expectations, and increased scrutiny on return on investment. Across every percentile, companies have reduced pay and quotas for newer Account Executives (AEs) with one to three years of experience while increasing on-target earnings (OTEs) for tenured AEs with three or more years of experience, widening pay gaps between top and lower performers. This shift signals a growing preference for proven revenue producers and faster time-to-impact as sales motions become more complex and margin for error narrows.

Conversely, compensation disparities among Account Managers (AMs) peaked last year and are now beginning to narrow, signaling a broader recalibration in strategy toward stability and predictability in post-sale roles. While concentrating investment in top performers may drive short-term efficiency, it also introduces greater vulnerability to attrition, increased pressure on mid- and lower-performing reps, and reduced upside for early-career talent, potentially weakening long-term sales pipelines.

"Sales compensation strategies are becoming far more concentrated, with organizations placing bigger bets on veteran performers while pulling back on early-career investments," said Chris Li, Chief Product Officer at Xactly. "As productivity expectations rise and leaders face growing pressure for predictability, often supported by AI-enabled tools, compensation is shifting from fueling growth to managing risk. How companies balance efficiency today with developing tomorrow's talent will define their long-term success."

Key takeaways from the 2026 State of Sales Compensation Report include:

• Top performers earn more while lower performers lag: Elite AEs now see richer variable payouts, accelerators, and premium territories, while lower-performing AEs experience much smaller gains. The pay gap between 25th- and 90th-percentile AEs has widened steadily over the last five years, reaching nearly $200,000 in 2025.
• AM pay gaps are narrowing: After climbing over $50,000 from 2021 to a peak of $181,500, the OTE gap between high- and low-performing AMs fell to $162,000 in 2025, signaling a strategic recalibration in compensation.
• Early-career AEs face declining OTEs while experienced reps gain: AEs with 1-3 years of experience have seen OTEs decline across all percentiles, while AEs with 5+ years gained an average of $26,000, reflecting a shift from investing in bench strength to rewarding proven performance.
• Companies prioritize elite performance over cost efficiency: The Compensation Cost of Sales (CCOS) for 90th-percentile AEs has increased over the past five years, while CCOS for lower-tier performers dropped. This suggests organizations are trading incentive cost efficiency for greater certainty, leaning more heavily on a small group of elite sellers to secure revenue in a volatile market.
• AM and Lead Generation CCOS shows market reset: CCOS for AM and Lead Gen roles increased steadily until 2024, then fell sharply in 2025 to well below 2021 levels, reflecting higher quotas, tighter ROI scrutiny, and a focus on efficiency and predictability.

To download a full version of the report, please visit our website.

Research Methodology:

The 2026 State of Sales Compensation: Benchmark Data & Behavioral Trends report is based on more than 20 years of Xactly's proprietary sales compensation data, with analysis focused on trends from the past five years. Drawing from global organizations, the report examines how companies are evolving sales compensation strategies amid growing pressure on efficiency and performance, with a particular focus on pay compression and cost of sales trends shaping 2026 and beyond.

About Xactly

Xactly provides the only AI-powered platform that combines revenue intelligence and sales performance management so organizations can unlock their full revenue potential. Backed by two decades of pay and performance data, Xactly's Intelligent Revenue Platform is designed for finance, revenue, compensation, and sales leaders who want to drive quality, sustainable revenue. To learn more about Xactly and the latest issues and trends in revenue intelligence, visit us at XactlyCorp.com, follow our blog, and connect with us on LinkedIn.