Money and compensation are among the most sensitive issues that family business members face. Some of the pitfalls include using pay to maintain parental control and/or to resolve emotional issues, mixing compensation with gifts, and keeping (or trying to keep) compensation a secret from most people. As a result, family businesses often deal with disputes involving bonuses, salaries, paid time off, and ownership interests (including voting vs. nonvoting interests). READ MORE
Tim Cook’s compensation doubled in 2020, but he fell to No. 8 on CEO pay rankings
Bloomberg is out today with its annual Pay Index report covering the year 2020, ranking the compensation of top US executives and CEOs. This year, Tesla CEO Elon Musk unsurprisingly comes in at the top, while Apple CEO Tim Cook has fallen to spot No. 8 on the list.
In last year’s rankings, Cook was the second-highest paid CEO with $133.7 million in earnings from a combination of stock awards, salary, and bonuses. In 2020, Bloomberg’s data shows that Cook’s compensation nearly doubled to $265 million, but his placement on the rankings fell to eight. READ MORE
US employers plan to hike pay increases in 2022
The survey results are a follow up to October 2020 research by Willis Towers Watson that showed more than one-third of U.S. employer respondents would reduce projected salary increases, though half of respondents said that planned increases for 2021 would remain intact. The firm pointed to financial concerns and budgetary constraints as a potential damper for planned increases. READ MORE
Paid leave proves critical for talent retention
When advocating for paid family leave, Shama Skinner points to her own pregnancies as praxis.
"There's a term that is used for the first three months of the baby's life — they call it the fourth trimester. I see why they do, because there's still such a close connection between the mother and baby during that time," she told HR Dive. "I know it's not like this for everybody, but my personal experience was that I really needed to be at home and dedicated to my baby." READ MORE
A firefighter said he had covid-19 to get paid time off. He lied and vacationed at a resort
William Jordan Carter called the Dallas Fire-Rescue Department in late March to request leave after his wife tested positive for the coronavirus. His employer granted him the paid time off, prosecutors said.
A week later, the firefighter called his deputy chief asking for additional paid time off — he said his daughter had also contracted the virus, according to an affidavit filed last week. The city gave him another week of paid leave. READ MORE
CVS will raise its minimum wage to $15 an hour
CVS will raise its minimum wage for hourly workers to $15 by next summer, becoming the latest large US chain to pledge a $15 starting rate as companies compete for workers in a tight labor market.
The pharmacy giant, which has nearly 300,000 employees, said Wednesday that it will begin increasing wages for hourly workers this month and hit the $15 an hour mark across the company next July. CVS will also increase starting rates for positions such as pharmacy technicians and call center representatives above $15. Around 65% of CVS's hourly employees already make more than $15 an hour, the company said. READ MORE
Vanguard will pay vaccinated workers $1,000
Vanguard, one of the world's largest asset managers, is offering employees $1,000 to get vaccinated.
The incentive shows how aggressively some companies are moving to encourage workers to get vaccinated as concerns about the Delta variant mount. All of Vanguard's approximately 15,500 US employees are eligible and must show proof of vaccination by October 1. READ MORE
Improving Incentive Compensation Using Revenue Multiplier
Attainment-based compensation is calculated by dividing revenue by the assigned quota. In a typical business-to-business sales organization, plans are setup in such a way that 40% to 50% of the salesforce reaches the target and 50% to 60% exceed targets.
It is not uncommon to have upside set at three times the target incentive. A payout factor is calculated by using the revenue attainment and the factor is applied to the target incentive to calculate compensation payout. Any increase in revenue is going to increase the payout factor, thereby putting the salesperson into accelerators (usually beyond 100%) and thus increasing payout. The increase in payout factor will be achieved by a revenue multiplier, which as the name implies, is multiplying the revenue amount with pre-configured factors based on the role and by products or offers. READ MORE
The two-week pay cycle is broken, but employers can fix it
The U.S. labor shortage is a major issue for businesses.
Ninety-percent of businesses say it's difficult or very difficult to find workers right now, according to a report from the Chamber of Commerce. Although job openings reached a high of 8.1 million in March and restaurant and retail traffic is up 47% since January, many businesses are reducing hours because of a lack of workers. READ MORE
Why Don’t Tech Companies Pay Their Engineers to Stay?
When news broke that breakout star Regé-Jean Page was leaving Bridgerton after only one season, my initial reaction was that of shock and heartbreak. I couldn’t fathom why Netflix and The Duke of Hastings weren’t able to come to some sort of agreement. But then it hit me: my entire career, I’ve watched talented engineers leave companies for greener pastures after painfully short tenures. I’m even guilty of this myself — I left an amazing company after less than two years to join Ethena as VP of Engineering. READ MORE
Surprising inequities in compensation
Surprising inequities in compensation The gender pay gap is consistently in the news, but there are other groups in the United States’ working world who are less likely to see stories about their lower pay rates. Most people know women and nonbinary individuals overall earn less than their white male colleagues, but mothers earn even less than women without children. Other reasons some groups see fewer dollars in their bank accounts include age and disability, or they are part of racial minority groups or the LGBTQ+ community. The differential between pay awarded to white males versus other workers is getting smaller in some instances, but the gap between wages paid to white men and both Black men and women has actually worsened in the past two decades, according to one reportfrom the Economic Policy Institute.Assemble compiled data from government agencies, human resources organizations, news outlets, and advocates for equal pay to create this list of individuals and groups still struggling to achieve pay equity. Continue reading to learn why these inequities exist, and ways that employers, human resource professionals, and advocates are trying to eliminate the differences via policy reform, litigation, and other tools.Visit thestacker.com for similar lists and stories. READ MORE
CEO Compensation Blows Away Average Worker's Salary
If one of your fantasies is having a semi-tractor-trailer back up to your house and dump a giant mountain of cash on your front lawn, you should consider becoming the CEO of a large corporation. Recent data published by the AFL-CIO covered CEO pay rates from 2020 to 2021 and compared them to the median salary of employees working in the same company—and the differences are staggering. READ MORE
Goldman Sachs hikes junior banker pay to $110,000 as salary battle sweeps Wall Street
Goldman Sachs is raising salaries for junior bankers, following the vast majority of its main rivals as Wall Street’s focus on burnout among younger employees continues.
The bank is set to raise first-year analyst pay to $110,000, second-year analyst pay to $125,000, and first-year associate pay set to $150,000, according to people familiar with the matter. READ MORE
Do the New IRS Nonqualified Plan Audit Guidelines Mean Section 409A Audits are Coming?
The IRS updated its Nonqualified Deferred Compensation Audit Techniques Guide (the “2021 Guide”) in June 2021. The 2021 Guide replaces a similar guide that was published in June 2015. READ MORE
CEO diversity: does it explain CEO-to-employee pay ratio?
According to the Economic Policy Institute, the CEO-to-employee pay ratio increased by 1000% in the past 40 years.
US public firms were mandated to report on this gap by the 2010 Dodd-Frank Act, with the first gap data becoming available in 2017.
A recent report examines the effect of CEO gender and minority status on the size of the compensation gap between a firm’s CEO and its average worker. READ MORE
Are you in the global middle class?
The COVID-19 pandemic has rewound the clock on a decade-long progressive trend of people around the world moving out of poverty and into the middle class. At the end of 2020, there were an estimated 54 million fewer people in the middle class than had been projected at the start of the year, and 131 million more in poverty. READ MORE
Consumer spending and incomes rose while a key measure of inflation dipped in June
A key measure of inflation showed price increases slowing down in June, while Americans' incomes and spending rose — signaling better-than-expected momentum in the economic recovery.
Even though prices continued to climb, albeit at a slower pace than expected, it didn't weigh on American spending, the Bureau of Economic Analysis reported Friday. READ MORE
Higher wages are fantastic for workers. But small businesses are struggling to keep up
Wages are going up. That's great news for workers. But some smaller companies may struggle to absorb higher labor costs.
The Russell 2000 (RUT), an index of small cap American firms, has fallen about 2.5% in the past month while the Dow and S&P 500, home to giants such as Apple (AAPL), Nike (NKE) and Walmart (WMT), are each up more than 2%. READ MORE
When Nonprofit CEOs Are Not in the Room During Board Votes on Their Pay
Keeping nonprofit chief executive officers out of meetings when members of their boards discuss or vote on compensation can lead to these CEOs making less money and working harder.
This is a key finding from a study of nonprofit pay I recently completed with two fellow finance scholars, Benjamin Bennett and Rik Sen. We reached this conclusion after reviewing data for more than 14,700 nonprofits across the country from paperwork most nonprofits must file with the Internal Revenue Service every year, known as Form 990, and the associated Schedule J, which includes compensation. READ MORE
DEI is now a factor in executive pay. But there's one big disconnect.
There's been an uptick in companies tying their executives' compensation packages with diversity goals — with a recent Mercer analysis putting the percentage of S&P 500 firms embracing the idea at 27%, which was more than double the rate from before 2020.
But experts say companies are often taking a short-term approach to the issue – a disconnect that could limit the effectiveness of the idea, given that successful diversity, equity and inclusion strategies require long-term efforts. READ MORE