Engagement in knowledge exchange (KE) with external actors has become widely accepted as an integral mission of universities. However, research and teaching performance remain more important for career progression, while engagement activities are more weakly institutionalized. This raises the question of why academics participate in knowledge exchange engagement activities. This paper examines to what extent academics perceive that they are rewarded directly for KE by their university and to what extent they perceive to benefit in terms of their performance in other missions (research and teaching). Furthermore, we examine how these perceptions are associated with actual engagement behavior. We use data from a sample of academics in seven European universities to examine whether direct and indirect benefits from engagement are linked to engagement in a broad range of KE activities. The results suggest that direct university rewards are associated with less engagement in KE activities, while perceived indirect benefits are associated with more engagement. These relationships are particularly strong in STEM fields.