As employers navigate ways to incentivize and retain employees in this rapidly changing business environment, below are some key considerations when addressing the impact of COVID-19 on executive compensation. READ MORE
Understanding Stock Compensation Plans | Part I: Restricted Stock Units
If you look back 20-30 years, it was common for companies to offer employees access to company stock through company retirement plans, stock compensation plans, or employee stock purchase plans. In the fallout following the collapse of Enron and WorldCom in 2002, many employees lost not only their jobs but also their life savings as their company stock went to zero. This resulted in tremendous scrutiny from regulators, ultimately leading to legislation aimed to protect employees from corporate meltdowns. READ MORE
Why San Francisco Is In Trouble – 19,000 Highly Compensated City Employees Earned $150,000+ In Pay & Perks
The San Francisco Bay Area is home to wonders of the modern world like the Golden Gate Bridge and Silicon Valley — as well as powerful progressive politicians like House Speaker Nancy Pelosi, Governor Gavin Newsom, and U.S. Senator (and vice-presidential hopeful) Kamala Harris. READ MORE
Guidance issued on payroll tax deferral
Late on Friday, the IRS issued much-anticipated guidance on the payroll tax deferral that was ordered by President Donald Trump in a presidential memorandum on Aug. 8 (Notice 2020-65). The notice allows employers to defer withholding on affected employees’ compensation during the last four months of 2020 and then withhold those deferred amounts during the first four months of 2021 READ MORE
Uber employees sue over stock price decline since IPO
What’s Restrictive about Restricted Stock?
Here’s the deal: You pay nothing; shares of your employer stock are reserved for you; a specific period of time passes; you pay personal income tax on the value of the shares; and now the shares are yours to keep or sell. Did you get that? You pay nothing and eventually receive employer stock. And, your only cost is the income tax paid. Hmmm….sounds pretty good! READ MORE
How McDonald's clawback battle highlights need for strong misconduct policies
Regardless of whether the mega chain can claw back ousted Steve Easterbrook's severance package — which has grown to a staggering estimated $57.3 million since his firing in October — what matters is what the chain does next, corporate ethics experts say. READ MORE
Reopening and Rehiring During the COVID-19 – Critical Executive Compensation Considerations
As many employers are on the way to normalizing their business practices and re-engaging their employees, they should not overlook the many potential pitfalls in the administration of their retirement, health and welfare plans and their executive compensation arrangements. READ MORE
SBA Releases Interim Final Rule Related to Owner-Employee Compensation and Related Party Nonpayroll Costs
The U.S. Small Business Administration issued an Interim Final Rule on August 25, 2020 (the “Rule”), addressing owner-employee compensation and related party nonpayroll costs. READ MORE
Amazon CEO Jeff Bezos Becomes the World’s First $200 Billion Man
Amazon CEO Jeff Bezos became the world’s first person ever to hit a net worth of $200 billion on Wednesday, as the tech giant’s stock continued a steady climb that kicked off in mid-March, as the coronavirus pandemic hit the U.S. READ MORE
The CEO who gave everyone a $70K minimum salary in 2015 has a message for the doubters
Five years ago, Dan Price upended the status quo of the corporate world—one in which executives reap many times what employees sow—by taking a radical stance on salaries at his credit card processing company, Gravity Payments. First, he cut his own salary from more than $1 million to $70,000. Then he created a minimum salary of $70,000 for every employee at his company. READ MORE
Salary increases set for workers in 2021 compensation plans
Maximizing Sales Performance is No Longer Just About Compensation
Sales organizations are being forced to change at an incredibly rapid pace. With buyers operating in new ways, and remote work becoming the norm, reps must adapt to a new selling paradigm — under heightened pressure to meet ambitious goals. READ MORE
New PPP forgiveness guidance addresses owner-employee compensation
The U.S. Small Business Administration (SBA) and Treasury issued an interim final rule Monday addressing Paycheck Protection Program (PPP) forgiveness issues related to owner-employee compensation and the eligibility of nonpayroll costs. READ MORE
CFOs must grapple with pandemic-related payroll tax nexus
Having employees work from home until COVID-19 subsides is a practical solution to the pandemic but it also creates potential state-level problems with nexus, business- and payroll taxes. READ MORE
Survey: Most employers planning raises, bonuses for 2021
This year, companies granted employees increases between 2.5% and 2.7%, below the 3% companies had budgeted before the pandemic hit, the survey report said. READ MORE
‘Not just a low-wage recession’: White-collar workers feel coronavirus squeeze
The coronavirus recession that began as a short-term shutdown devastating low-wage workers is now bearing down on white-collar America, where employers have been slower to rehire and job losses are more likely to be permanent. READ MORE
Terminating a CEO for Cause
The consequences of a “for cause” termination can be severe, with the former executive forfeiting equity awards, having to repay previously paid incentive compensation (the “claw-back”), losing severance benefits and having vested stock repurchased at a punitive price. READ MORE
PPP: Who is subject to Owner-Employee Compensation Forgiveness Limitations?
Self-employed Schedule C (and Schedule F) filers, general partners, and other PPP borrowers that utilized 2019 IRS Form 1040 Schedule C line 31 net profit amount in calculating the amount of their PPP loan are clearly subject to these limitations. However, the SBA guidance also indicates that owner-employees of C-Corporations, S-Corporations and LLCs are subject to the owner-employee compensation limits, and the SBA guidance is silent on limited partners. READ MORE
Subsidized — not minimum — wages should assist workers during the pandemic
The Democratic Party platform approved this week calls to more than double the federal minimum wage to $15 per hour. Democratic presidential nominee Joe Biden has declared that he’ll do just that if elected president, and the many supporters include his running mate, Sen. Kamala Harris (D-Calif.). But there is a more innovative way to help low-wage workers, and it’s hard to overstate how bad a minimum wage increase would be right now. READ MORE