ESG Comp: An Easy A for CEOs?

Tying some amount of executive compensation to a company’s ESG performance has become more common among U.S. public companies over the last generation, Adam B. Badawi and Robert Bartlett write in a new paper.

But ESG-related pay remains a very modest part of total CEO pay and is awarded with unusually high frequency, find Badawi, a professor at UC Berkeley School of Law, and Bartlett, a professor at Stanford Law School, in their article “ESG Overperformance? Assessing the Use of ESG Targets in Executive Compensation Plans,” available on www.ssrn.com. READ MORE

How to use Creative Compensation Strategies for Employee Satisfaction

In today’s challenging economic environment, where many businesses struggle to provide regular pay increases, it's becoming essential to explore alternative ways to reward and recognise employees. As financial constraints continue to affect organisations, offering creative compensation strategies beyond traditional pay raises can help boost employee satisfaction and retention.

According to ADP's "People at Work 2024: A Global Workforce View" report, 77% of workers globally expect a pay rise within the next 12 months. However, for many businesses, meeting these expectations may not always be feasible. The good news is that there are various non-monetary alternatives that employees value and that can have a positive impact on workforce morale. READ MORE

‘Say on Pay’ Data Points to Strong Support for Exec Comp Plans

When it comes to 2024 results and the end of the recent proxy season, WTW’s U.S. executive “say on pay” research covering the Russell 3000Open in a new tab showed a continuation of the 2023 data trend.

Brian Myers, a North America governance team lead and the director for executive compensation at WTW, explained that results from the 2024 proxy season identified persistent strong support (from both proxy advisors and shareholders) for pay plans that began in 2023 — with pay and performance alignment influenced by strong stock price movement to date. READ MORE

How Pay Transparency Connects with Job Architecture and Employee Trust

In 2021, the state government of ColoradoOpen in a new tab caused a stir when it began requiring employers to disclose pay ranges on job postings. Although the state of MarylandOpen in a new tab and the cities of CincinnatiOpen in a new tab and ToledoOpen in a new tab in Ohio had already enacted pay transparency laws in 2020, they did so without the visibility that Colorado’s law required. Additional states and municipalities have since enacted pay transparency laws or proposed changes that strengthen their existing laws — and the list is growing. READ MORE

Gaming Increases Salary And Career Success. 3 Reasons It Works

If you want to increase your salary or achieve success in your career, gaming may be the perfect strategy. There is evidence that gaming as a child is linked with better pay and more promotion as an adult—and you can accomplish similar results with continued gaming as well.

It’s a tough job market today and there is tons of competition not only for the best roles, but also the best projects and promotions. Employers are looking for those with brilliant thinking and problem-solving skills in addition to people who embrace tech and who can cope with all of the current challenges. READ MORE

2024 Proxy Season Highlights: Compensation Trends and Lessons Learned

As the 2024 proxy season comes to a close, we reflect on key executive compensation trends and consider any lessons learned. This article discusses three such trends. In general, 2024 was not significantly different from 2023 but we did see the second year of pay versus performance disclosures. We also saw support for say-on-pay proposals increase this year and a diverse range of executive compensation-related shareholder proposals. READ MORE

Trends in DE&I Compensation Metrics

Amidst the debate over corporate ESG and DE&I practices, Teneo’s analysis of recent S&P 500 proxy filings reveals an interesting trend: the practice of including DE&I metrics in executive compensation is not only widespread, but increasing in prevalence.

Contrary to headlines suggesting a retreat from DE&I pay measures, our findings indicate more companies have added DE&I metrics to compensation plans than removed them in 2023. However, a notable shift has occurred – many companies are disclosing less detail about the specific DE&I metrics and goals impacting executive payouts. This shift, likely a strategy to reduce backlash from anti-DE&I activists, clashes with investor demand for transparency and the trend towards increased disclosure that began before the inception of say-on-pay. As companies navigate this complex landscape, they must consider the governance and shareholder implications of altering their DE&I pay-related disclosures. READ MORE

What will salary increase budgets look like for 2025?

At the height of the Great Resignation a few years ago, salary increase budgets told the story: Employers were willing to pay a premium to get workers in the door. Today, that urgency has lessened slightly, as organizations navigate a changing job market amid a backdrop of economic uncertainty.

New research out this week from The Conference Board found that—of the 300 compensation leaders the organization surveyed—projected salary increase budgets for 2025 are expected to edge up about 3.9%, a slight increase from the actual 3.8% these organizations reported this year. While the figure is among the highest projections the agency has seen in the last two decades, researchers say, it represents a drop from the actual increases of 4.4% in 2023. READ MORE

Appellate Court Upholds DOL Authority Behind Recent Overtime Final Rule

A U.S. appellate court on Wednesday, Sept. 11, upheld the authority of the Department of Labor (DOL) to consider salary level as the basis for determining exemption eligibility under federal overtime pay requirements.

The decision came courtesy of the U.S. Court of Appeals for the Fifth Circuit, which delivered a unanimous three-judge panel verdict for the defense in the case Mayfield v. U.S. Department of LaborOpen in a new tab. READ MORE

Wages, adjusted for inflation, are falling for new hires in sign of slowing job market

If you need further proof that the nation’s formerly sizzling job market has gone cold, look to what had been perhaps the hottest part of the post-pandemic hiring frenzy: pay for newly hired workers.

After adjusting for inflation, average wages for new hires fell 1.5% over the 12 months ending in July – from $23.85 an hour to $23.51– the largest such decline in a decade, according to an analysis of Labor Department figures by the W.E. Upjohn Institute for Employment Research. READ MORE

Are You Well-Paid? Compare Your Salary to the Average U.S. Income

The median household income in 2023 was $80,610, up 4% from the previous year, according to the U.S. Census Bureau. That's the first meaningful change in income, and increase, in recent years, when accounting for inflation.

While your industry and position largely dictate your earnings, you may want to know how your salary compares to the national average income of your peers or the general population. After all, the more you make, the more you can (usually) save for an emergency or retirement. READ MORE

Implementing a Compensation Clawback

The SEC approved a new exchange listing standard for public companies required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which required listed companies to adopt a clawback policy by December 1, 2023. This policy requires the clawback of “incentive-based” compensation erroneously received by current and former executive officers, regardless of fault, during the three years prior to an accounting restatement. Although the legal requirements for a clawback policy are straightforward, the implementation of a clawback can be complicated. READ MORE

67% of workers plan to change jobs in the next 6 months. Here’s what would stop them

The world of work continues to evolve, but one thing remains constant in the current job marketplace: the demand for remote and flexible work. From improved working relationships to better work-life balance, flexible work can benefit everyone—and job seekers agree.

To better understand workers’ career decisions, work preferences, and perspectives on the current job market, FlexJobs polled more than 3,000 U.S.-based professionals between August 5 and 18. READ MORE

What will salary increase budgets look like for 2025?

At the height of the Great Resignation a few years ago, salary increase budgets told the story: Employers were willing to pay a premium to get workers in the door. Today, that urgency has lessened slightly, as organizations navigate a changing job market amid a backdrop of economic uncertainty.

New research out this week from The Conference Board found that—of the 300 compensation leaders the organization surveyed—projected salary increase budgets for 2025 are expected to edge up about 3.9%, a slight increase from the actual 3.8% these organizations reported this year. While the figure is among the highest projections the agency has seen in the last two decades, researchers say, it represents a drop from the actual increases of 4.4% in 2023. READ MORE