The Average Age of a Super Wealthy American Has Fallen Dramatically Since 2014

The rich are getting richer, and younger.

A survey of U.S. investors with $25 million or more finds their average age dropped by 11 years since 2014, to 47. These fabulously rich Americans, whose ranks have more than doubled since the depths of the Great Recession, are younger than less wealthy millionaires. The average age of those with at least a mere $1 million is 62, a number that hasn’t budged in years. READ MORE

Trending Topics in Executive Compensation

In 2018, a number of executive compensation issues made headlines, with trending topics including director compensation litigation, the impact of the recent U.S. tax reform on performance-based compensation, the influence of the #MeToo movement, persisting gender pay disparity issues and enforcement actions by the Securities and Exchange Commission (SEC) on executive perquisite disclosure. We expect further developments on these topics in 2019 and beyond and encourage companies to consult with their legal advisers as needed in order to stay informed and prepare for new developments in the rapidly changing landscape of executive compensation. READ MORE

Research: Gender Pay Gaps Shrink When Companies Are Required to Disclose Them

Government-mandated reporting of gender pay discrepancies has been a subject of much debate in the last 5-10 years. Those arguing for legislation to require such reporting say that it will help to address the persistent gender wage gap. Opponents insist that not only is that unlikely; it will also increase companies’ administrative burden and decrease profits. Until recently there has been no strong evidence to support either side. READ MORE

Investing in Low-Wage Jobs Is the Wrong Way to Reduce Migration

Amid today’s global immigration crises, wealthy governments are seeking ways to keep out newcomers. Border security measures (typically more sophisticated than U.S. President Donald Trump’s wall) are often first on the list. But other ideas are gaining adherents as well. In the European Union and elsewhere, policymakers are betting that investment and trade will reduce migration from less developed countries. Put money into export-oriented jobs where the would-be workers are, the theory goes, and fewer will leave in search of opportunities elsewhere. READ MORE

Raising the Minimum Wage Will Cut Entry-Level Jobs

According to the Bureau of Labor Statistics, there are 80 million hourly paid workers in the United States. Only 221,000 hourly paid workers age 25 or over earn the federal minimum wage. That’s 0.27 percent, an extremely small number. Moreover, most people in minimum wage jobs remain in them for less than a year. They typically work at that level for a relatively brief training period before their pay goes up. READ MORE

IRS Issues Guidance on Executive Compensation Excise Tax for Tax-Exempt Organizations

n Notice 2019-09, issued December 31, 2018 (the “Notice”), Treasury and the IRS have provided interim guidance on the excise tax on certain executive compensation arrangements under section 4960 of the Internal Revenue Code. This new provision was enacted as part of the Tax Cuts and Jobs Act at the end of 2017. The Notice, which spans more than ninety pages, is primarily structured in a question and answer format and clarifies many ambiguities in section 4960. The Notice requests comments by April 2, 2019. READ MORE

Three performance management trends to shake up 2019

In HR we need to stay up to date with the latest performance management trends. It's the only real way to ensure we're motivating and encouraging our team in the most effective way. As the years go by, our knowledge of human psychology advances. On top of this, each generation is motivated and driven by different factors. If we don't keep up, our companies fall behind and in this great war for talent we'll lose out to our more forward-thinking competitors. READ MORE