NQDC plans: Solutions in search of a problem

In this roaring economy, much has been written about employers reinvesting tax breaks to sweeten benefit packages and take-home pay, but what about the nonqualified deferred compensation (NQDC) area? Kirk Wolf, managing regional VP of nonqualified plans and principal securities for Principal Financial Group, explains to EBA how these plans fit into the war on talent and the importance of periodic benchmarking, as well as applying their inherent flexibility to commonly faced issues and communicating their value. READ MORE

Wages Are Growing Faster Than You Think

Standard wage data show that between the spring of 2017 and the spring of 2018, real wages in the U.S. increased only 0.1%. But there are three major problems with these data. First, they don’t account for fringe benefits, which are an increasing proportion of employee pay. Second, standard wage data use an index that overstates the inflation rate. Third, each year the composition of the workforce changes, as older, higher-paid workers retire and young, lower-paid workers enter the workforce. READ MORE

Why workers are earning better pay — and why it won’t help them all that much

Hurray. American workers are finally getting bigger pay raises. Unfortunately, rising inflation is eating up a lot of the extra cash and will lead to higher borrowing costs on mortgages and car loans.

The amount of money paid per hour to American workers rose in August to a yearly pace of 2.9% — the highest level since the end of the Great Recession in mid-2009. READ MORE

What HR needs to know about performance management

You might have heard by now that the annual performance review process has fallen out of favor. But what does that mean in practice?

The classic lawyer answer applies: It depends — on your company culture, your technology and your management team. Employers are inundated with options, but many are shifting toward something more informal and less tightly structured. More employees want continuous feedback and, increasingly, managers are able to offer it. A solid performance management program will be able to nurture star workers and suss out bad hires, while finding ways to support both when necessary. Inside you'll find guides on what works — and what to do when it doesn't. READ MORE

Could New 'Smaller Reporting Company' Rules Affect GC Compensation?

In June of this year, the Securities and Exchange Commission (SEC) voted to approve rule amendments (referred to in this article as the amendments) that specifically expand the definition of the so-called “smaller reporting company.” The amendments, that become effective this September, will result in 966 additional companies becoming eligible for smaller reporting company status. As a result, almost 1,000 companies can take advantage of scaled-down disclosures in their periodic reports and proxy statements, which includes opting out of executive compensation disclosures entirely. This article explores whether such an opportunity could affect executive compensation decisions altogether. READ MORE