A successful compensation program, one that drives strategic execution and competitiveness, starts with a guiding philosophy. That’s especially true of executive compensation. Just as companies develop different business strategies, they benefit from different compensation philosophies that respond to their unique circumstances. READ MORE
New Laws Are Forcing Employers to Share Salary Details With Applicants
When looking for a job, it can take hours of interviews and days of preparation to get an answer to a very basic yet crucial question: How much does the gig pay?
Broach the salary question too soon, and an employer might view it negatively. Avoid the question or salary negotiations altogether, and you risk getting underpaid. It’s a delicate song and dance. But a new wave of laws, which are requiring private companies to fork over salary details, could end that rigamarole once and for all. READ MORE
Using a Non-Compete to Create a Substantial Risk of Forfeiture Under a Section 457(f) Plan: Limited (But Meaningful) Opportunities
The Treasury Department’s proposed regulations regarding the income tax treatment of “ineligible plans” of tax-exempt employers under Code Section 457(f), published in June 2016, were greeted with much fanfare. (Final regulations have not yet been published, but taxpayers may rely on the proposed regulations now.) Section 1.457(f)-12 of the proposed regulations (the “Proposed Regulations”) attempts to fill in the gaps, and iron out some of the inconsistencies, between the general rules governing deferred compensation plans under Code Section 409A and the special rules governing “ineligible plans” (“Section 457(f) plans”). READ MORE
Stock Options: To Qualify, or Not to Qualify? That is the Question.
Options to purchase stock of an employer continue to be a popular form of equity-based compensation, particularly among start-ups and other privately-held companies.
One perennial question companies face in designing stock option programs is the extent to which they should grant nonqualified stock options, known as “NQSOs,” or statutory stock options, known as “incentive stock options” or “ISOs.” READ MORE
Some firms thrived during Covid and then got their PPP Covid relief loans forgiven
In late June, Sharps Compliance, a Houston-based medical waste management company, reported spectacular financial results. The rollout of Covid-19 vaccines had increased demand for the company’s services, Sharps said, and its earnings had more than quadrupled. The company’s board granted Sharps’ top three executives twice the compensation they’d received a year earlier based on the performance; the trio shared almost $1 million more than they’d received in fiscal 2020, Securities and Exchange Commission filings show. READ MORE
CEO pay trending up after declining early in pandemic
The economic fallout from the pandemic has forced businesses to adjust the structure and compensation of their workforces. Many companies altered their performance plans, froze or reduced salaries, and furloughed employee segments, according to the 2021 Gallagher Russell 3000 CEO and Executive Compensation Trends study. READ MORE
Colorado Issues New Rules Governing Employee Compensation for 2022
Changes Include No More 'Use-It-Or-Lose-It' Policies; Guidance on Pay Rate for HFWA Leave; Clarity on Missed Rest Period Penalty; and New Rules for Agricultural Employers
The Colorado Department of Labor and Employment (CDLE) has adopted new rules, effective Jan. 1, 2022, pertaining to overtime and minimum pay, adjusted labor compensation and wage protection. READ MORE
Unions and Bargaining Over Pay: Two-Tier Wage Systems, Explained
Thousands of John Deere workers have been on strike for more than a month. Nearly 1,500 Kellogg’s workers likely will celebrate Thanksgiving on the picket line. More than 30,000 Kaiser Permanente workers narrowly avoided a strike this week through an 11th-hour deal with management.
The common thread? Tiered wage proposals that help companies cut costs but that unions say cheat new workers out of pay and retirement benefits. READ MORE
The Future of Inflation May Lie in the Hands of Workers
While U.S. job vacancies remain high, there’s no clear evidence yet of a shift in the power balance toward labor that could drive a wage-price spiral. READ MORE
Salary Negotiations Are Up. Here's How to Pull Off Yours Successfully
Last year, it seemed like companies were shedding jobs left and right. This year, it seems like companies can't hire quickly enough.
Not surprisingly, that's led to an uptick in salary negotiations, reports Jobvite. In fact, 73% of the recruiters Jobvite recently surveyed say they've seen an increase in negotiating higher salaries among both job applicants and existing employees. And 56% of recruiters say average salaries in the industries they service have increased this year. READ MORE
How are new state salary transparency laws working in this economy?
According to The Conference Board, in the first half of 2021, wages and salaries rose at their fastest pace in more than 20 years. There are a number of things at play — not least the tight labor market, which is leaving some employers scrambling to hire good candidates.
Meanwhile, that trend is colliding with another big change in the workplace: the growing movement toward salary transparency. READ MORE
This year at USPS: Mail slowdowns, big executive bonuses
The U.S. Postal Service paid its top executives more in bonuses and perks this past year than in a decade, adding up to $370,622 in extra income for Postmaster General Louis DeJoy and four of his deputies, according to a Center for Public Integrity review of the agency’s financial disclosures. READ MORE
Most millionaires would receive a tax cut under Democrats' latest spending proposal
A majority of millionaires would receive a tax cut under the newest reconciliation framework unveiled by House Democrats, according to a new analysis published this week.
The non-partisan Tax Policy Center found that two-thirds of people making more than $1 million a year would see an average tax cut of $16,800 next year. READ MORE
Early wage payments draw scrutiny
At a congressional hearing Tuesday, industry organizations offered testimony before the House Financial Services Committee's Task Force on Financial Technology regarding the benefits and potential detriments of earned wage access and other new fintech consumer services, such as buy now-pay later installment payment options. House members of the task force questioned the witnesses and offered dueling interpretations of EWA and BNPL offerings. READ MORE
How ‘Boomerang Employees’ are getting heftier salaries
It’s one of the biggest hiring trends happening right now: employers welcoming back employees who up and left during the pandemic.
They’re called, ‘Boomerang Employees’ and their return to the office can actually benefit both parties.
‘Boomerang Employees’ are workers who decided to leave their employers for a new gig, only to return to their former employer several months or years later. READ MORE
These top 10 tech jobs have the fastest growing salaries
IT managers, system architects, cloud engineers and cybersecurity engineers took home the biggest salaries last year, according to the latest Tech Salary Report from jobs website Dice, with Texas and other emerging hubs taking big leaps forward.
Overall, the salaries of US tech professionals grew 3.6% between 2019 and 2020, reaching an average of $97,859. This was despite many businesses tightening budgets in response to the financial pressures caused by the pandemic. READ MORE
GE’s CEO could make a fortune when the company splits into 3
GE plans to split the conglomerate into three companies focused on aviation, healthcare and energy. We can’t know the ultimate outcome of such a split, but there is one absolute certainty: CEO Larry Culp will have extraordinary financial gains.
We know this is a certainty because Culp has an employment contract that guarantees it. It fits with how GE has behaved for decades: executives have accumulated wealth regardless of how shareholders fared. READ MORE
A new recruitment tool for employers — paying workers every day
Struggling to attract workers as the coronavirus pandemic drags on, major companies are dangling an uncommon benefit to lure job candidates: a chance to get paid every day.
Dozens of employers — including fast-food chains Arby's, Wendy's, Jimmy John's and Taco Bell as well as retailers Big Lots, Dollar Tree and Kroger— are now giving employees the option to withdraw money from their paychecks moments after finishing their shift by using smartphone apps like Branch or DailyPay. READ MORE
Tax brackets will be higher in 2022 due to surging inflation, IRS says
The IRS on Wednesday announced 2022 inflation adjustments for a slew of different tax provisions, including federal income brackets and the standard deduction, that reflect a months long surge in consumer prices.
Because of a spike in the cost of most consumer goods, the majority of the tax bracket thresholds are rising at a faster pace than is usual, the IRS said. READ MORE
Workers take a pay cut as inflation erodes wage gains
Surging inflation resulted in an effective pay cut for American workers during the month of October, despite an increase in wages, according to monthly figures released Wednesday by the Bureau of Labor Statistics.
Real average hourly wages, a measure of income adjusted for the cost of goods and services, declined 0.5% for all employees from September to October, according to the bureau. Real wages are down 2.2% since January and have declined in eight of the last 10 months. READ MORE
