Sales compensation entered a tenuous position as soon as the pandemic shut down offices and retail business locations across the United States. Companies and consumers both are spending less, and as a result just about any sales projection for 2020 is going to need an adjustment. READ MORE
Economic recovery from coronavirus requires a federal minimum wage hike: Mark Cuban
The "Shark Tank" star called for a federal minimum wage of $15 per hour. READ MORE
Fewer than half of working Americans will have a paycheck in May
The millions of Americans who have lost their jobs in recent weeks due to the coronavirus pandemic will have a devastating effects on the economy going forward as workers are left without pay. READ MORE
The Covid-19 test for compensation committees
Compensation Committees are addressing whether compensation should be adjusted to reflect the effect of the coronavirus (COVID-19) pandemic on companies’ businesses and how to correlate executive compensation with changing company priorities. Here is how compensation committees can approach this challenge in the coming months. READ MORE
Exec Compensation May Need an Adjustment
The COVID-19 pandemic has left a lot of companies thinking about compensation. And, while the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) addresses a lot of issues, it lacks definitions and specificity in several important areas that pertain to executive compensation issues, according to a report from executive benefits advisory firm Fulcrum Partners, about potential consequences of the CARES Act on executive compensation. READ MORE
Initial jobless claims deteriorate further as concerns over wage deflation mount
American labor dynamics deteriorated further for the week ending April 18 as 4.427 million workers filed initial jobless claims, implying that the near real-time unemployment rate has increased to 21.1% at a minimum. READ MORE
COVID-19 Equity and Equity-Based Compensation Plan Considerations
Many public and private companies utilize employee compensation plans that are designed to deliver employer shares or cash compensation based on share price and/or other financial performance measures, which have been impacted by the effects of the COVID-19 pandemic. This bulletin discusses a number of executive compensation topics arising in an economic environment that is impacted by the COVID-19 pandemic. READ MORE
The winding road of equity compensation planning
Days after saying “I do”, Emily Van Hoorickx pulled out a map to help find her new office in Silicon Valley. The map would later come in handy when her boss would tell her, “Go to San Jose. That’s where the wealthy people live.” READ MORE
Why The Coronavirus Could Raise Wages
US unemployment shot higher in the last month, thanks to coronavirus closures. Some 17 million people filed new jobless benefit claims. READ MORE
Loans Under Section 4003 or 4116 of the CARES Act: Beware of Executive Compensation Limits
Businesses that avail themselves of financial assistance under Section 4003 or 4116 of the CARES Act must limit compensation and severance paid to certain officers and employees. READ MORE
CARES Act Executive Compensation Provisions
The $2.3 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act1 provides a variety of stimulus and relief programs to employers negatively impacted by COVID-19. Each program has different eligibility requirements and may impose limits on employee compensation that can be paid by companies that participate in the program. This alert discusses those programs and limits. This alert also discusses the limited payroll tax relief provided under the CARES Act. READ MORE
Trump revives call for payroll tax cuts in ‘phase four’ coronavirus relief package
President Trump on Friday renewed his calls for a broad payroll tax cut as a way to ease the economic pain caused by the coronavirus pandemic after he had previously called for such cuts last month. READ MORE
Unemployment Insurance Weekly Claims
The COVID-19 virus continues to impact the number of initial claims and its impact is also reflected in the increasing levels of insured unemployment. In the week ending April 4, the advance figure for seasonally adjusted initial claims was 6,606,000, a decrease of 261,000 from the previous week's revised level. The previous week's level was revised up by 219,000 from 6,648,000 to 6,867,000. The 4-week moving average was 4,265,500, an increase of 1,598,750 from the previous week's revised average. The previous week's average was revised up by 54,750 from 2,612,000 to 2,666,750. READ MORE
Trump says infrastructure bill should slash salary of highest-paid federal worker
President Trump on Wednesday called on Congress to slash the salary of the top-paid federal employee, Jeff Lyash, who earned $8.1 million last year as president of the Tennessee Valley Authority. READ MORE
Paid to quit? Backlash builds against unemployment benefits on ‘steroids’
An additional $600 per week in unemployment benefits has started going out as part of the coronavirus relief bill passed in March -- but the new payments, combined with state unemployment benefits, already are causing concern that some workers could be in a position to actually make more money by leaving their jobs. READ MORE
This company pays its workers a $70,000 minimum salary, and that’s helping it weather the coronavirus crisis
It’s been five years since we announced a $70,000 minimum wage at our company, Gravity Payments. Since then, our revenue has since tripled and our headcount and customer base have doubled. Meanwhile, our employees have made major improvements to their lives, such as buying houses, starting families, saving for retirement, and eliminating debt. READ MORE
Executive Compensation Limits In Cares Act Raise Questions
The sweeping federal stimulus bill known as the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or ‘‘CARES Act’’ includes a provision intended to prevent federal loans or loan guarantees from being used to enhance senior executive compensation. This provision, while seemingly simple on its face, raises many interpretative questions, and prompt regulatory guidance will be necessary for its implementation. READ MORE
Restrictions On Executive Compensation For Companies Receiving Financial Assistance Under The CARES Act
Among many other provisions, the recently enacted CARES Act – that is intended to provide financial assistance to individuals and businesses negatively impacted by the global pandemic – restricts executive compensation paid by companies that receive financial assistance under the Act itself. READ MORE
The CARES Act and Compensation – What Employers Need to Know
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) (H.R. 748).
In this blog post we (1) lay out an initial action plan for employers considering obtaining relief under the CARES Act, (2) summarize the compensation-related provisions of the CARES Act, and (3) identify the key questions that the CARES Act leaves unanswered. READ MORE
Compensation Considerations and New CARES Act Provisions
This client alert addresses certain complex issues facing public company compensation committees as companies are adapting to the economic impact of COVID‑19. We also point out the restrictions placed on executive compensation for companies that receive loans or guarantees under the new Coronavirus Aid, Relief and Economic Security Act (CARES Act). READ MORE