How 2025's GTM Compensation Trends Will Impact CMOs

As the GTM landscape changes, here's how the latest compensation trends are reshaping marketing leadership and what you need to do to thrive.

The landscape for go-to-market (GTM) professionals has seen significant shifts over the last few years. What was once a booming era of unrestrained growth is now giving way to a more measured approach focused on efficiency, sustainability, and profitability. From CEOs to individual contributors across Sales, Marketing, RevOps, Customer Success, and Partnerships, 2025 compensation trends reflect a broader market reorientation that values disciplined execution over unchecked expansion. As companies tighten budgets and recalibrate their strategies, GTM leaders are expected to deliver more with less, raising the stakes for everyone.

For CMOs, this shift means recalibrating not just compensation strategies but also leadership approaches. The demand for marketers who can drive both efficient growth and measurable impact has never been higher. With competition intensifying in a landscape that now prioritizes profitability, the expectations placed on marketing leaders are evolving. Let’s dive into the key takeaways from the Pavilion GTM Compensation Report, how they speak directly to CMOs, and the new challenges and opportunities in marketing leadership.

Executive Compensation is Shrinking—but the Best Are Still Getting Paid

First up: the elephant in the room. Executive compensation is down. Way down. In fact, the 2025 Pavilion GTM Compensation Report tells us that on-target earnings (OTE) for C-suite executives have dropped by 19% year-over-year, with CEOs taking a hit of 30%. That’s a significant drop.

Source: 2025 Pavilion GTM Compensation Benchmarks

So, what’s going on? Investors and boards are no longer rewarding unprofitable growth. Instead, the focus is on achieving sustainable, efficient growth. This means companies are tightening their belts, cutting back on perks like signing bonuses, pre-negotiated severance packages, and wellness budgets. In other words, if you’re not delivering results, it’s not just your bottom line that’s shrinking—it’s your paycheck too.

But here’s the twist: elite performers are still in high demand. The top 10-20% of executives are seeing increased compensation as companies compete for transformational leaders. So, if you’re a CMO who can deliver profitable growth, navigate through uncertainty, and prove your worth, there’s still plenty of reward in it for you. It’s a reminder that the real value comes from the company you choose to lead, not just the title or paycheck attached to the role.

Efficiency is the New Buzzword

Gone are the days when throwing money at growth was enough to keep the momentum going. The new mantra is efficiency over excess. Investors are now looking for CMOs who can get more done with fewer resources—and deliver results fast.

This trend doesn’t just apply to executives. The demand for specialized roles, especially those in AI, RevOps, and growth marketing, has exploded. Individual contributors in these areas saw a 23% increase in earnings as companies invest in hands-on execution that drives efficiency.

For CMOs, this means it’s time to roll up your sleeves. Efficiency isn’t just a nice-to-have; it’s essential for survival. The companies that thrive in this environment will be the ones that can streamline operations, optimize resources, and continue driving growth without burning through the budget.

I’ve had my share of doing more with less, whether managing tight budgets or leading teams with fewer resources than we wanted. But the best results often come when you’re forced to be creative and strategic. Chasing the right company (instead of title or money) gives you the flexibility to make those calls without worrying about whether you have the perfect budget or team size. It’s about making things work with what you’ve got and delivering results.

The Death of Equity (Or At Least, the Decline)

Once upon a time, equity compensation was the golden ticket for executives—a promise of long-term wealth creation. But now, the landscape has shifted. The percentage of executives receiving equity has dropped from 82% in 2024 to 77% in 2025, signaling a broader shift away from equity as a key incentive.

But here's the kicker: It's not just that executives are moving away from equity—they often don’t fully understand it. And that shocked me. The report found that many executives are in the dark about the critical terms of their equity packages, such as what happens to their shares if the company is acquired, how equity vests, whether there’s an acceleration clause, or what the exercise window looks like. In fact, 38% of executives didn’t even know if their company had a right of first refusal on secondary sales. This lack of clarity is a huge problem, and it’s likely a major factor in why equity isn't being valued the way it once was.

Source: 2025 Pavilion GTM Compensation Benchmarks

If you don’t understand the terms of your equity package or how it could impact your financial future, why would you place much value on it? If you don’t know what happens to your shares if the company is acquired or how long you have to exercise your options, the potential upside becomes far less appealing.

For CMOs, this signals a need to revisit equity offerings and ensure clear communication with candidates. Many executives are leaving money on the table due to misunderstandings, creating an opportunity to provide more transparent, well-structured compensation. If equity is part of your package, make sure the terms are well-explained and you truly understand its potential value.

AI: The Key to Unlocking Growth and Talent

Whether you’re a fan or a skeptic, the truth is undeniable: AI is quickly becoming the cornerstone of efficient, scalable growth. The most sought-after talent today isn’t just skilled in marketing fundamentals; it’s the CMOs who can harness AI to drive strategy, insights, and execution.

The report makes it clear: AI fluency is no longer optional. CMOs who understand how to integrate AI tools into their teams’ workflows will be able to drive faster, smarter growth while reducing costs. The challenge? Not everyone is on board yet. So, if you can master AI and help your team do the same, you’ll be miles ahead of the competition, and your compensation will reflect it.

This is one of those moments when the companies that embrace AI are going to soar, and I’m all in on the opportunities it presents. If you can lead a team that understands AI’s potential and drives real results with it, you’ll find yourself not just leading in marketing, but leading the way in the company’s future.

Short-Term Focus, Long-Term Results: Finding the Balance

Here’s where it gets tricky: while companies are obsessed with hitting short-term targets, marketing leaders are still expected to think long-term. This puts CMOs in a bit of a bind. You need to drive immediate results but also have a clear, strategic vision for the future.

In this new climate, it’s all about balancing short-term wins with long-term value. CMOs who can navigate this dual mandate—delivering quick wins while laying the foundation for sustained growth—will set themselves up for success. You need to prove that today’s actions will have a lasting impact, even if the metrics you’re measured on are more immediate.

Remote Work: The Competitive Advantage You Didn’t Know You Had

It’s no secret that the world of work is changing. A few years ago, remote work was a perk. Now, it’s a must-have for top talent. The report found that over 50% of roles now require in-office presence, but top performers are still prioritizing flexibility. For CMOs, this is both a challenge and an opportunity.

Want to attract the best talent? Embrace remote-first work options. The companies that offer flexibility will open the door to a wider pool of talent, which is key in a market where experienced sellers, marketers, and growth leaders are in high demand. Remote-first work isn’t just a trend; it’s a competitive advantage for companies that want to stay ahead of the talent game.

I’ve seen firsthand how powerful remote-first strategies can be. When a company values your ability to perform over your ability to be in the office, it shifts the conversation to what truly matters—results. This is an advantage companies should not overlook.

Lead the Charge or Get Left Behind

In 2025, the game has changed. It’s no longer about throwing money at growth or hoping for a big exit down the road. It’s about efficiency, AI fluency, and sustainable profitability. CMOs who can adapt to this new normal, who lead through volatility, embrace emerging technologies, and deliver results on a tighter budget, will thrive.

For those who can’t keep up? The landscape will be unforgiving. But if you can find the balance between short-term execution and long-term strategy, integrate cutting-edge tools like AI, and build a culture of efficiency, you’ll be in a prime position to not only survive but thrive in this new era of marketing leadership.

Download a copy of the 2025 Pavilion GTM Compensation Benchmark here.

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