The 33-year-old will leave City to become player-manager of Anderlecht this summer to end 11 years of service at the Etihad.
Kompany’s final season with the club saw him lift the Carabao Cup, Premier League and FA Cup as City secured a historic domestic treble.
The Belgium international played a crucial role in City’s title run-in, starting the final four games and scoring a 25-yard screamer to secure a vital 1-0 win over Leicester.
Pearce, who managed and played for the Citizens, told talkSPORT: “When I was watching Manchester City train pre-Pep, you could see influence Vincent had on the training pitch.
“One thing I said yesterday was the best signing of the summer could be Vincent Kompany – to keep him at the club, keep his influence and hang on to leaders within the group.
“I’d be very interested to hear how that conversation went between Vincent and the club. You’d bet it would have been very amicable.
“But it’s where he goes from here, is it retirement or is it to play football elsewhere or is there a management opportunity?
“Vincent’s been, arguably over last ten years, the best captain and best leader there’s been in the Premier League.”
Kompany has signed a deal to become player-manager of Belgian side Anderlecht, the club he started his career with.
But Pearce believes the defender will return to the Etihad in the future.
He said: “If you’re going to bow out with Manchester City there’s probably no better season to do it than here and now with what they’ve achieved this year.
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