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A group of U.S. chief executive officers earned 140 times more last year than the median workers at their companies, according to a survey that gives a first glimpse of newly required pay ratio disclosures.
Workers at the 356 public companies included in the study received $60,000 in median compensation, Equilar said in the report released Thursday, which didn't include CEO pay figures. READ MORE
The momentum for disclosing gender pay gaps at major U.S. banks is moving at lightning speed. Six banks and financial institutions were targeted last year for gender pay disparity. Today, Wells Fargo became the third bank to agree to report on and work to close gender and racial pay gaps. In response, Arjuna Capital withdrew its gender pay shareholder proposal. READ MORE
America’s biggest companies are about to tell the world for the first time how compensation for their chief executives compares with what they pay their rank-and-file workers. READ MORE
The laws for evaluating and discussing employee compensation are undergoing dramatic changes. Under these laws — including one in California that took effect at the start of the year — you can no longer ask a candidate about their past compensation. In some cases, even if it’s voluntarily provided without prompting, you can’t make future offers based on that information. READ MORE
As CEO incentive pay packages bring attention to transparency issues in executive compensation, a group of directors and chief risk officers from The Directors and Chief Risk Officers Group published a set of guiding principles for compensation committees around the governance of risk related to pay and performance.
The report aims to give a company's board of directors and board-level compensation committees guidelines for the governance of risks linked to an organization's compensation culture.
Here are 10 guidelines for compensation committees to best guide executive pay and performance, according to the report. READ MORE
The Tax Cuts and Jobs Act is fueling changes to corporate America’s employee benefits, compensation and executive pay programs, according to a survey by Willis Towers Watson.
Of 333 large and midsize employers who responded, 49% are considering making a change to at least one of these programs either this year or next. READ MORE
Tesla has installed a new compensation plan for CEO Elon Musk that would reward him handsomely if he can build the electric vehicle automaker into "one of the most valuable companies in the world." READ MORE
In the blink of an instant, a corporate brand can turn from sterling to tarnished. Just ask Volkswagen or Wells Fargo—two prestigious names that have become associated with scandal in recent years, and now become synonymous with shady corporate practices. READ MORE
The 2017 tax reform act referred to as the Tax Cuts and Jobs Act (Act) was signed into law Dec. 22, 2017. The law affects executive compensation and employee benefits in several ways. This alert provides a brief overview of some of the changes. READ MORE
As much has been written regarding the repeal of the performance-based exception to the $1 million dollar deduction limitation under Code Section 162(m) under the Tax Cuts and Jobs Act (the Act), we have highlighted certain issues that compensation committees should consider in the post-Act era as they review 2017 bonus payouts and chart a course forward without having the benefit of the performance-based compensation exception. The Act makes the following key changes to 162(m) effective for tax years beginning after December 31, 2017: READ MORE
President Trump signed the Tax Cuts and Jobs Act of 2017 on Dec. 22, 2017. Effective as of Jan. 1, 2018, the Act adds Section 4960 to the Internal Revenue Code (“Code”), which imposes a new 21 percent excise tax on “Compensation” paid by an “Applicable Tax-Exempt Organization” with respect to employment of any Covered Employee. The employer is responsible to pay the excise tax, even if the amount paid is determined to be reasonable under the intermediate sanction rules. For purposes of Section 4960, the following terms are defined: READ MORE
Money talks. And it's also a main reason employees walk.
More than a third of employers expect to lose more workers this year, with 45% citing salary as the main reason behind the resignations, according to a new data from Glassdoor. READ MORE
At the end of 2017, President Trump signed into law The Tax Cuts and Jobs Act (the “Act”) that includes significant changes in the employee benefits area, most of which became effective on January 1, 2018. The following is a brief description of some of the notable changes, and we expect additional guidance on many of the Act’s provisions. READ MORE
Wages were mostly flat again last year, even as the stock market rose to record heights. This is kind of what we expect nowadays: The divide between Main Street and Wall Street has become a staple of stump speeches everywhere. READ MORE
The tax bill formerly known as the Tax Cuts and Jobs Act (the Act) reduces tax rates for individuals, lowering the top marginal tax rate from 39.6% to 37%, effective January 1, 2018. Employers should make sure that the tax rates used for federal tax withholding on equity awards are reduced to correspond to the lower rates under the Act, in order to avoid adverse financial accounting consequences. This change may require an adjustment to payroll systems. READ MORE
Jeff Bezos’s net worth reached $105.1 billion Monday on the Bloomberg Billionaires Index as Amazon.com Inc. shares added to a 12-month surge that’s lifted the online shopping giant’s market value by almost 57 percent. READ MORE
Apologists for the many millions in compensation that America’s largest corporations regularly dole out to their top executives have essentially one basic, all-purpose go-to defense. READ MORE
This is the fifth article in our series covering the various employee benefits-related changes contained in the Tax Cuts and Jobs Act signed by the President on December 22, 2017.
Some of the most fundamental changes under the Act in the employee benefits and executive compensation arena impact executive compensation paid by tax-exempt employers and may result in the imposition of significant new excise taxes on such employers. READ MORE
The Tax Cuts and Jobs Act of 2017 (the “Act”) signed into law on December 22, 2017, will significantly impact many public company executive compensation plans and arrangements. Companies should take this opportunity to revisit their overall compensation design and consider whether changes are appropriate to enhance flexibility and/or better align compensation design with the company’s business objectives. This alert highlights changes in the law affecting public company executive compensation arrangements and key considerations in revising compensation plans and arrangements and overall compensation program design. READ MORE