How To Align Executive Compensation With Strong Governance: Seven Recommendations

A well-designed compensation system is an essential pillar of corporate governance. Not only can it attract and retain top talent, but it can also create structures that effectively incentivize performance and alignment with strategic objectives. But its impact goes even further: An effective compensation system also strengthens trust and transparency in management, contributing to the company's sustainability and long-term value creation.

In times when corporate trust is built or lost around these principles, the way companies define and manage executive compensation reflects their corporate culture and values. It's a tangible expression of the organization's strategic priorities. READ MORE

What Trump’s crackdown on proxy advisors could mean for executive compensation

The Trump administration is seeking to weaken the power of proxy advisors that play a major role in shaping corporate governance issues, including compensation.

In a Dec. 11 executive order, President Donald Trump called for increased oversight of the proxy advisor industry, arguing that these organizations have used their power to advance shareholder proposals related to issues like DEI and ESG, rather than prioritize investor returns. READ MORE

Elon Musk's net worth hits record $749B after legal win restores massive Tesla compensation

Elon Musk just got richer. The Tesla CEO saw his net worth rise to $749 billion after the Delaware Supreme Court on Friday overturned a lower court ruling that had invalidated his 2018 Tesla compensation package, according to Forbes.

The decision effectively restored a pay package now estimated to be worth approximately $139 billion, up from its original valuation of around $56 billion due to Tesla stock appreciation. READ MORE

Employees Are Accepting Lower Salaries Just so They Can WFH—Would You?

I consider myself to be one of the lucky ones. You know, one of those people who somehow dodged the return-to-office mandate and still works from home every day of the week. I’m not being dramatic when I say that nothing, and I mean nothing, could get me to go back into an office on a daily basis. However, I had a moment this week, after watching Tinx’s viral TikTok video, when I asked myself, “Would I go back if the price was right?” After considering a few shiny salary amounts, the answer was still a hot, fiery no. But, as it turns out, not everyone feels that way. Even my husband thought I was certifiably insane. READ MORE

Why financial wellness should start with employees' paychecks

Employers have invested heavily in financial wellness tools that go beyond the basics, but most employees still don't even know how to set up their paychecks.  

Traditional financial wellness tools give employees access to a wealth of information about their finances, but they rarely help employees understand how those insights will impact their take home pay. Whether it's saving more, or adjusting their withholdings for HSAs, FSAs or taxes, employees aren't being given the proper education or guidance on how those choices affect their overall compensation. READ MORE

Bitcoin’s Silent Exodus Hits Crypto as Long-Time Buyers Cash Out

Bitcoin’s most entrenched investors are still cashing out — and the pressure is starting to show.

More than two months after the token hit a record high above $126,000, Bitcoin has fallen nearly 30% and is struggling to find support. One reason: its long-time holders haven’t stopped selling. New blockchain data shows that coins held for years are being divested at some of the fastest rates in recent memory, just as the market’s ability to absorb them is fading. READ MORE

The Future of Payroll: How Crypto and Stablecoins Are Changing Salaries

The payroll game is changing, and it’s not just about numbers on a check anymore. With the rise of blockchain payments and stablecoins, companies are starting to rethink how they pay their employees. So, how is crypto payroll making its way into the mainstream? Let's dive into how these digital currencies are reshaping the salary landscape and what it means for businesses and employees alike. READ MORE

A Revolution in Payrolls: How XRP Changes Global Compensation

The conversion rate of XRP to USD now has a deeper meaning than its mere surface-level value. XRP is increasingly seen as a settlement token for global payroll systems because it is faster and cheaper than traditional software. Organizations all over the world have to deal with slow payments between countries and high conversion fees. Companies can use XRP for payroll to change fiat money into XRP, move it across borders, and change it back to the local currency right away for a lot less money. READ MORE

Tesla board made $3 billion via stock awards that dwarfed tech peers

Tesla's board of directors has earned more than $3 billion through stock awards that far exceeded the value of those given to peers at the biggest U.S. technology firms at the time they were paid, according to an analysis performed for Reuters by compensation and governance specialist Equilar.

The analysis found CEO Elon Musk's brother Kimbal has earned nearly $1 billion since 2004, based on the appreciated value of stock options held or liquidated. Director Ira Ehrenpreis has collected $869 million since 2007. Board chair Robyn Denholm has made $650 million since 2014. READ MORE

Equity Compensation and Profits Interest Incentive Structures in Companies

With the end of the fiscal year approaching, we continue to see an uptick in the number of clients seeking counsel on structuring equity incentive plans. As our clients take a look back at the prior year’s performance and a look forward to tax planning and financial strategy for the upcoming fiscal year, often now is a time when clients will consider implementing an equity-based incentive structure. The use of equity-based incentives remains a central strategy for our clients seeking to attract, retain, motivate, and compensate employees and independent contractors. As the formation of partnerships — including limited liability companies (LLCs) classified as partnerships for income tax purposes — has proliferated, so too has the issuance of profits interests as a primary form of equity compensation in these entities. READ MORE

Executive Pay - How C-Suite It Is!

On the first two nights of November, a young man from a small, coastal Japanese town became the biggest star of America’s pastime. Yoshinobu Yamamoto, standing all of 5’10’’ (half-a-foot shorter than the average MLB pitcher), pitched on consecutive days to win the final two games of the 2025 World Series for the Los Angeles Dodgers. He threw a combined 130 pitches over two days, a feat last accomplished by Randy Johnson, an intimidating figure at 6’10”, in the final games of the 2001 World Series. READ MORE

Executive pay implications for the 2026 proxy season

Proxy advisor Glass Lewis released its final 2026 benchmark policy guidelines in early December with impacts for say-on-pay (SOP) and shareholder proposal vote recommendations. The updates affecting SOP are consistent with the quantitative pay-for-performance (P4P) methodology changes that Glass Lewis previewed earlier this year (see ISS and Glass Lewis gear up for 2026: both launch policy surveys, Glass Lewis previews methodology changes). The updates affecting shareholder proposal vote recommendations reflect recent SEC changes to the shareholder proposal process that make it easier for companies to exclude shareholder proposals. The final guidelines are effective for annual meetings held after Jan. 1, 2026. READ MORE

NFL Refs Union Doesn't Want Compensation Tied To Performance Because Of Course It Doesn't

NFL executive vice president of football operations Troy Vincent didn't have good news for club owners this week when he updated them on the negotiations between the league and the referees union because, obviously, the sides haven't struck a new deal and the officials are balking at some things the NFL wants to do in the next contract.

And I know what you're thinking: The zebras have a union? READ MORE

What to Expect in 2026: Anticipated Changes to Executive Compensation Disclosure After the SEC Chairman’s NYSE Speech

For the first time in nearly two decades, the SEC is preparing to modernize Item 402 of Regulation S-K, the backbone of public-company executive compensation disclosure. Although the timing remains uncertain, we expect proposed reforms to emerge in 2026, setting the stage for the most significant shift in pay disclosure since 2006.

Recent public remarks—including Chairman Paul Atkins’s December 2025 address at the New York Stock Exchange[1]—indicate a strong shift toward re-centering the SEC’s executive compensation disclosure regime on financial materiality, scalable requirements for smaller and newly public issuers, and avoidance of what Chairman Atkins described as an “avalanche of trivial information.”[2] These remarks reinforce that any modernization of Item 402 is likely to emphasize clarity, decision-useful disclosures, and proportional compliance burdens. READ MORE

The 2026 Compensation Committee Agenda

Based on developments over the course of 2025, we expect that 2026 is going to be a busy year for compensation committees as they adapt to a changing shareholder and regulatory environment. Changes in regulatory priorities should provide compensation committees with room for muted optimism about certain areas under their purview (e.g., shareholder advisor influence and disclosure compliance). However, continued economic uncertainty and changing policy creates additional work for compensation committees in 2026. READ MORE

Do executive compensation incentives really matter?

When it comes to executive incentives, the conventional wisdom is clear — if you want to improve a metric, tie compensation to it. Unfortunately, creating the right mix of incentives to influence the right combination of outcomes is tricky, and many companies fail to do this well.

A new analysis by the EY-Parthenon team closes the loop on an important question: How much do executive compensation incentives matter in improving a company’s focus on return on invested capital (ROIC) and cash flow (CF)? The analysis has lessons about designing incentives that achieve the desired outcomes. READ MORE

Most US Employers Plan to Keep 2026 Salary Increases Flat to 2025

Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today released the results of its October 2025 Mercer QuickPulse® US Compensation Planning Survey.

The survey of more than 1,000 US organizations revealed that on average, employers plan to hold base salary increases for merit at 3.2%, and total increases at 3.5%, which encompasses all salary increases, including for merit, promotions, cost-of-living, and other adjustments, in 2026 – same as the actual increases employers reported in 2025. READ MORE