CFOs are outpacing CEOs when it comes to pay increases

How much of a base salary increase did CEOs and CFOs receive in 2022?

Compensation Advisory Partners (CAP), an executive compensation consulting firm, exclusively shared with Fortune data on salary, bonuses, and equity payouts that provides a sneak peek. The report data is based on 50 cross-industry S&P 1500 companies (with median revenue of $4.6 billion and a median market cap of $7 billion) that have fiscal year ends between Sept. 30 and Nov. 30. READ MORE

SCOTUS Ruling Increases Employer Risk Of Overtime Liability For Day Rate Compensation

On February 22, 2023, the United States Supreme Court issued a 6-3 decision holding that an employee who is paid a day rate (without any weekly guarantee) must be paid overtime under the Fair Labor Standards Act (“FLSA”) because day rates are inconsistent with the Department of Labor (“DOL”) regulations governing many exemptions from the overtime requirements. This decision compels employers – particularly those in the energy and maritime industries that commonly rely on day rates – to re-examine their payment practices.  READ MORE

DOJ Pushes Companies to Punish Misconduct With Bonus Cuts

Companies found to have committed crimes will get reduced fines from the US Justice Department if they act to claw back compensation paid to executives and employees responsible for misconduct, Deputy Attorney General Lisa Monaco said.

The department also will require every company that reaches a resolution with its criminal division to structure its compensation and bonus programs so that bad behaviors will be punished, Monaco said Thursday at a conference in Miami on white-collar crime. READ MORE

Gen Z women expect to make $6,200 less than men after graduating—salary transparency could help

As the next generation of professionals starts to think about what their salary will look like post graduation, women are more likely to lowball themselves, a new report finds.

The impacts of the gender pay gap are felt even before women enter the workforce, according to Handshake, a career platform for college students. Their latest Gen Z salary transparency report found that, after surveying 1,853 Gen Z jobseekers, women expect a $6,200 lower average salary compared to men. READ MORE

Supreme Court Upholds Salary Requirement for Overtime Exemption

Highly compensated employees can be eligible for overtime pay if they are paid on a daily basis, the U.S. Supreme Court ruled on Feb. 22 in a case that clarifies overtime exemptions under the Fair Labor Standards Act (FLSA).

In Helix Energy Solutions Group v. Hewitt, the Supreme Court ruled 6-3 that a former employee who made more than $200,000 a year was eligible for overtime pay because he was paid on a daily basis. READ MORE

Department Of Justice Focuses Corporate Compliance Efforts On Executive Compensation

The Department of Justice’s (DOJ) recent plea agreement with Danske Bank demonstrates increasingly aggressive efforts to incentivize corporate compliance and hold individual executives accountable for corporate misconduct. The DOJ charged Danske Bank, a global financial institution based in Denmark, with defrauding banks in the United States. The plea agreement contains a notable provision that ties executive compensation and bonuses for the bank’s executives to future compliance efforts. The agreement follows recent statements by DOJ officials that companies will be expected to claw back compensation from executives who engage in misconduct. Corporate executives should be on notice that the DOJ is becoming increasingly aggressive in holding corporate executives personally accountable for compliance at their organizations. READ MORE

Highly-Paid Executives May Be Entitled to Overtime Compensation

After an extensive analysis of the Fair Labor Standard Act’s (FLSA) provisions governing overtime pay as applied to highly-paid employees, the Supreme Court has upheld the FLSA’s “salary basis test” – finding that not only is the rate of pay important, so is the basis on which the pay rate is determined. The Court’s holding confirms that even very highly compensated executives may be entitled to overtime. READ MORE

Gen Z's Gender Pay Gap: Young Women Expect Much Lower Salaries Than Men

Gen Z may be known for being progressive, but young people may still be influenced by the gender wage gap when it comes to salary expectations, according to a new report.

Handshake, a college career network, surveyed over 1,800 new college graduates seeking jobs. The results show that even with pay transparency shrinking the gender wage gap in the U.S., Gen Z women respondents have lower salary expectations than men. READ MORE

The 10 Fastest-Growing Tech Salaries By Occupation In 2023

Whether it’s a DevOps engineer or a program analyst, many IT jobs saw an increased salary in 2022 despite extensive layoffs across the industry. In fact, out of 35 jobs researched 17 of them had a salary increase over the last year, according to a new Dice report.

The average tech salary increased by 2.3 percent year over year from $108,857 in 2021 to $111,348 in 2022. And the average annual salary for jobs in the IT market is more than $140,000, according to Dice. READ MORE

Justices decide a day-rate is not a salary

The basic rule is simple: If you earn an hourly wage and you work more than 40 hours in a week, you are probably entitled to “time and a half” overtime pay. But that widely known formula can give way to complexity, as it did in Helix Energy Solutions Group v. Hewitt, a case about whether plaintiff Michael Hewitt is owed overtime pay by his former employer. After parsing detailed regulatory language, a six-justice majority sided with Hewitt; the opinion, authored by Justice Elena Kagan, ultimately turns on the intuitive conclusion that someone who earns a day-rate is not paid on a “salary basis.” READ MORE