10 Keys to Excise Tax on Executive Compensation Paid by Tax-Exempt Organizations

Proposed Regulations under Section 4960 of the Internal Revenue Code provide important guidance for tax-exempt organizations and their affiliates regarding an excise tax on certain executive compensation.  The U.S. Department of the Treasury (“Treasury”) and Internal Revenue Service (the “IRS”) are accepting comments until August 10, 2020.  (Throughout this post, “Sections” refer to sections of the Internal Revenue Code.) READ MORE

SKILL-BASED PAY 2.0 & TECH

The very definition of a “job” is evolving rapidly in many organizations today — and not just in technology fields. “Work” today is more dynamic and unpredictable than ever. According to research on workforce reskilling by the World Economic Forum, one in four adults reported a mismatch between the skills they possess and the skills they need for their current job, with the shelf life of those professional skills being just five years. READ MORE

Blue-collar jobs are hotter than ever, yet entrepreneur asks why many make more money by staying at home

Now that at least some coronavirus reentry is a reality in many parts of the country, blue-collar entrepreneurs like me face the challenge of hiring back our workforces to return to some semblance of normalcy and get this economy rolling again. But there’s an obstacle that wasn’t there before and that the federal government is to blame for: the now missing incentive to go back to work. READ MORE

The Evolution of CEO Compensation in Venture Capital Backed Startups

Venture capital (VC)-backed firms play a disproportionately important role in the econ-omy in terms of innovation, job creation, and productivity growth (Kortum and Lerner2000; Puri and Zarutskie 2012). However, despite the importance of VC-backed firms andthe wealth of information about VC contracts (Hellmann 1998; Kaplan and Str ̈omberg2003; Ewens, Gorbenko, and Korteweg 2019), we know very little about thecompensationcontracts provided to founder-CEOs in private, venture capital-backed firms. READ MORE

Employees With ESPP Purchases During Stock Market Drop Reaped Big Gains In Rebound

An employee stock purchase plan (ESPP) buys company stock for participants at set intervals, usually every six months. An ESPP can be a very good deal. Employees at companies with ESPP purchases during the stock-market lows of March and April 2020 experienced meaningful gains of over 40% in the market rebound as of mid-June, according to data from a major brokerage firm. READ MORE

The U.S. Department of Labor Issues New Guidance on Leave and Wage & Hour Issues Confronting Employers as They Reopen for Business

On July 20, 2020, the Wage and Hour Division (“WHD”) of the U.S. Department of Labor (“DOL”) published new guidance for businesses reopening amid the COVID-19 pandemic. The guidance is in the form of additions to the WHD’s existing Frequently Asked Questions (“FAQs” or “Guidance”) and addresses issues arising under two leave laws—the Family and Medical Leave Act (“FMLA”), and the Families First Coronavirus Response Act (“FFCRA”)—and wage and hour matters governed by the Fair Labor Standards Act (“FLSA”). READ MORE

Remote work is closing the wage gap

The pandemic sent most people home to shelter and to work. Remote work has been so successful that many companies have either given employees the option to continue telecommuting when the pandemic wanes or ends, or, have shifted all work to remote operations. There are unforeseen benefits to remote work, which include the wage gap closing, but remote work proved to have a positive economic impact. Telecommuting may be the key to solving the  increasing geographic wage and opportunity gaps in the US. READ MORE