How To Fix Stagnant Wages: Dump The World's Dumbest Idea

The fact is that in the 1980s and beyond, public companies began embracing a very different idea as to the purpose of a firm:  the idea that the sole purpose of a corporation is to maximize shareholder value. Then, as executives were compensated massively with stock options to sharpen their focus on increasing shareholder value at the expense of everything else, and activist hedge funds began reinforcing the focus with corporate raids on firms that didn’t buy into the doctrine, public companies began to focus totally on maximizing shareholder as reflected in current the stock price. READ MORE

Conversion of the Notice of Temporary Compensation Payable

The notice of temporary compensation payable (NTCP) and its use has always been the topic of much debate since its inception. While the document was originally created to enable an employer to contest truly questionable claims, it has become almost the only document ever issued at the beginning of a case, thereby allowing the employer to retain control of the claim for 90 days, even in cases where liability is not in question in any way. Until the legislature addresses what many consider to be blatant abuse of the system and the NTCP, it is important to consider under what circumstances an NTCP converts into a permanent claim. While beyond the scope of this article, the workers’ compensation automation and integration system (WCAIS) has dramatically added much drama to the NTCP conversion scenario since it is often difficult for adjusters to issue the appropriate documents, and the mail is no longer a component in the equation. READ MORE

KPIs Should Never Be Tied to Compensation

We recently had the opportunity to ask a large group of supervisory board members the following question: “If there is a trade-off between hitting this year’s targets and managing the company’s long-term health, which would you like your executives to choose?” About 86 percent of the audience said they would rather executives prioritise the company’s long-term health, in other words, value. READ MORE
 

How To Offer A Competitive Compensation And Benefits Package To Remote Freelancers

Startups want the best talent but can't often pay for the compensation and benefits that these workers look for. For a while, the incentive to work remotely was appealing enough to many freelancers and developers who enjoyed the freedom and flexibility it offered. However, when it comes to sick days or vacation, they have to put aside more money to cover time because they know their companies are not pitching in. READ MORE

Stock-based compensation cost-sharing regs. valid

A transfer-pricing regulation that requires related entities to share the cost of employee stock compensation is a valid regulation, the Ninth Circuit held on Tuesday (Altera Corp., No. 16-70496 (9th Cir. 7/24/18)). The appeals court reversed a Tax Court decision that had held Regs. Sec. 1.482-7A(d)(2) to be invalid under the Administrative Procedure Act (APA) (Altera, 145 T.C. 91 (2015)). The Ninth Circuit found that the regulation, which requires related entities to share the cost of employee stock compensation for their cost-sharing arrangements to be considered qualified cost-sharing arrangements (QCSAs) and avoid IRS adjustment, withstands general administrative law principals and is therefore valid. READ MORE

How Sales Compensation Must Change With The Introduction Of Automation

The introduction of automation and machine learning to the sales process is already changing the game. Modern sales technology is allowing buyers to go through a majority of the buying process without ever speaking to a salesperson. Not only is this change evolving the role of the sales professional, but it is also altering how companies should structure their compensation plans. READ MORE

Sharing salary data: Empowering HR with compensation insight

For Stacey Klimek, vice president of people at PayScale, eliminating surprises, articulating compensation philosophy and providing context for pay decisions is all in a day’s work. And it’s easier to do when you have home-grown comp data and analytical tools at your fingertips. Employee Benefit News recently spoke to Klimek about how a pay data and compensation analytical tool provider can help executives meet corporate goals. Edited excerpts of that conversation follow. READ MORE

New CEO pay ratio rule offers narrow view into executive compensation

The new CEO pay-ratio rule has provided a new view into executive compensation — but more a peephole, limited and slightly distorted.

Public companies have long had to disclose the compensation of their five highest-paid executives, including the CEO. Under the new regulation, public companies need to report the ratio of the CEO’s pay to the pay of the median employee at the company. READ MORE

7 Compensation Strategies for Cash-Strapped Startups

As a startup founder, I’m constantly struggling to recruit top talent without breaking the bank. We can’t always match market salaries, but we need exceptional (read: expensive) talent in order to build from scratch. How do you recruit a developer making well into six figures, or an experienced salesperson with four kids in private school? At our company, Hatch Apps, we’ve learned to get creative. READ MORE