Only a small number of large companies have tied executive compensation to goals for hiring and promotion of workers from underrepresented groups. READ MORE
How meaningful are CEO pay cuts?
Companies across a wide range of industries have decided to slash CEO and executive pay amid the COVID-19 crisis, with some top leaders seeing their pay reduced from 10%, all the way down to zero. READ MORE
Presidential Compensation At Public Universities: 19 CEOs Made One Million Dollars Or More In 2019
Last year, 19 presidents or chancellors of public universities made one million dollars or more in total compensation. And average total compensation for chief executives of public institutions reached $544,136, according to recent data assembled by The Chronicle of Higher Education, which published its findings this week. READ MORE
Stop Asking Job Candidates for Their Salary History
In response to nationwide protests, CEOs have committed to fighting discrimination and intolerance and have renewed pledges to increase diversity and fairness within their organizations. But how can they demonstrate that these are more than just empty promises? New research (by Bessen, Denk, and co-author Chen Meng) shows that CEOs can take one simple, immediate action to substantially reduce pay disparities for Black and women employees: Stop asking job applicants about prior pay. READ MORE
Minimum wage workers cannot afford rent in any U.S. state
Full-time minimum wage workers cannot afford a two-bedroom rental anywhere in the U.S. and cannot afford a one-bedroom rental in 95% of U.S. counties, according to the National Low Income Housing Coalition’s annual “Out of Reach” report. READ MORE
Equity Compensation Considerations
A study from UBS finds employees value their equity compensation more when they receive education and advice about it, and working with an adviser boosts confidence in decisions about equity awards. READ MORE
New IRS Rules for Reporting Non-Employee Compensation
On July 6, 2020, the IRS issued Tax Tip 2020-80 to remind business taxpayers that, commencing with payments made in 2020, they must report any payments of over $600 per year for services by non-employees on Form 1099-NEC (for Non-Employee Compensation), a form last used by the IRS in 1982. READ MORE
IRS Tax Tip: Reporting Nonemployee Compensation, Backup Withholding (IRC §6041A)
Beginning in tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee, the IRS stated. Nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number to the payer or the IRS notifies the payer that the TIN provided was incorrect. The form is generally due by January 31, but for 2020, the due date is February 1, 2021, the IRS stated. READ MORE
IRS Issues Proposed Regulations for Tax-Exempt Organizations Paying Excess Executive Compensation
The IRS issued proposed regulations under Section 4960 of the Internal Revenue Code of 1986, as amended (the “Code”), which was added as part of the Tax Cuts and Jobs Act. The proposed regulations published in the Federal Register on June 11, 2020, largely follow the IRS interim guidance under IRS Notice 2019-09. However, the IRS made some helpful changes in the proposed regulations which are briefly summarized below. READ MORE
How to Do Performance Reviews — Remotely
You may have conducted hundreds of performance reviews over the course of your career, but in the era of Covid-19 everything is different. You and your team have been working remotely for months now in an extremely difficult situation. How do you begin to evaluate your employees’ performance at such a challenging time? How much should you consider the impact of Covid-19 on your assessment? And how do you make sure you’re fair-minded given everyone’s different circumstances? READ MORE
Employment in black and white: Wage inequality
The American condition, no matter how one measures it, inevitably comes back to jobs and wages. Wage inequality, whether between men and women, or African-Americans and whites, is a real concern. READ MORE
Pay and performance management in the age of COVID-19
As COVID-19’s impact on the market and workplaces lingers on, companies are facing a range of unprecedented questions. Among them: What should we do with performance management? And should performance link to pay for this year? READ MORE
COVID-19 and Executive Pay
COVID-19 has caused many illnesses and deaths worldwide. It also has caused significant economic loss for many business enterprises and this may impact, in turn, on the compensation those enterprises pay their executives. Today’s column discusses the impact COVID-19 may have on executive compensation. READ MORE
Elon Musk, Tesla board sued over alleged excessive compensation
Study finds salary history bans boost pay for African-Americans, women
As many companies across the U.S. explore ways to promote more racial equality in hiring, new research suggests banning salary history questions for job applicants provides considerable benefits for African-Americans and women. READ MORE
S.F. officials seek to tax "overpaid" execs and stock compensation
San Francisco’s board of supervisors has proposed November ballot measures that would tax companies that grant stock to their employees and those who pay top execs more than 100 times their median salary. READ MORE
Tesla’s board chair faces opposition from proxy advisers
Institutional Shareholder Services Inc. and Glass Lewis, the two largest independent services meant to advise investors on crucial shareholder votes, have come out against the reelection of Tesla Inc.’s board chair on concerns about executive compensation and board independence. READ MORE
Trump says infrastructure bill should slash salary of highest-paid federal worker
President Trump on Wednesday referred to as on Congress to slash the salary of the top-paid federal worker, Jeff Lyash, who earned $8.1 million final 12 months as president of the Tennessee Valley Authority. READ MORE
Wells Fargo ties progress on diversity to executive pay
Wells Fargo CEO Charlie Scharf announced Tuesday that the bank’s progress on diverse hiring goals will directly impact executive compensation decisions, as he laid out a series of internal changes to improve the experience of Black employees at the bank. READ MORE
Target raising its minimum wage to $15 an hour, giving frontline workers $200 coronavirus bonus
Target said Wednesday that it is raising its minimum wage for U.S. hourly workers to $15 beginning July 5. READ MORE