The Case against a National Minimum Wage

One of the major agenda items for the new Democratic House majority is a proposal to more than double the federal minimum wage, from $7.25 an hour to $15 an hour. The last such hike came in 2007, the last time Nancy Pelosi and her caucus took over the House; a recession and spike in unemployment followed, curbing further demands for minimum-wage increases. The fundamental problem, however, is not with the minimum wage so much as the national minimum wage. READ MORE

Low Wage, Not Low Skill: Why Devaluing Our Workers Matters

During a recent hotel stay, I had a conversation about how staff divides gratuities with the gentleman who brought my room service. It evolved into a master class—generously given by him—on how to manage hours and earnings in the hospitality industry. He told me the advice he gives less experienced staff on how to time joining a new hotel so they can get the tenure needed to control their schedules. I could see he didn’t just have a Plan B, but a Plan C, D and E for when his children get sick, or he’s needed on an extra shift. Every day, week and month, he manages a complex, ever-shifting matrix that would impress any director of logistics. READ MORE

Excessive Stock-Based Compensation Is Damaging Shareholder Returns

On January 30th, Alibaba released their earnings for Q4 of last year. On the whole, their numbers were very strong when the recent weakness in the Chinese economy is taken into account. Most importantly, for me, the 84% growth in their Cloud Computing segment is outstanding, and I believe this is what will drive the overall business's growth over the coming years. A positive sign is that although revenue growth is so high, they continue to operate at a break-even level, suggesting that it should be able to make a profit in the near future. READ MORE

Mind the Gap: Seeking Far-Reaching Solutions to Pay Equity

The gender pay gap has closed some since the Equal Pay Act was signed in 1963, but many politicians and media accounts cite studies that claim women are still paid 80 cents for every dollar paid to men. Some compensation thought leaders contend such conclusions are oversimplifications because they fail to consider job-related pay equity factors such as disparate pay for different professions, the availability of advancement opportunities, education, work experience, tenure and pay-for-performance. READ MORE

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