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As employers formulate answers to the nationwide call for racial equality, many have boosted their diversity, equity and inclusion (DEI) initiatives.
For some, this has included a decision to tie executive compensation to progress on DEI goals. Others have been doing this for some time, but newcomers include Wells Fargo and Starbucks. READ MORE
Executive compensation is a perennial engagement topic for the State Street Global Advisors Asset Stewardship team. We believe that executive compensation presents risks, such as creating perverse incentives, as well as opportunities, such as demonstrating a commitment to environmental, social and governance (ESG) priorities. When structured appropriately, executive compensation can be well aligned with operational goals and shareholder results. However, this topic is receiving elevated attention because the COVID-19 pandemic has rendered many compensation-linked performance targets unattainable. READ MORE
Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over a bribery scandal in Malaysia. READ MORE
Public companies maintaining deferred compensation arrangements for their executive officers should consider how recent changes to the regulations under Section 162(m) of the Internal Revenue Code (the Code) may impact the timing of payments to be made to participants and their beneficiaries under such plans – if action is required, the affected plans must be amended before December 31, 2020 to avoid complications or penalties. READ MORE
In a blow to Uber and Lyft, a California appeals court said Thursday that the companies must reclassify their drivers as employees rather than independent contractors, affirming an earlier court decision. READ MORE
There’s a common belief that salespeople are purely motivated by money. But if that’s true, asks PatientPop VP of Inside Sales Kevin Dorsey, then why do so many sales reps fall short of their quotas? READ MORE
U.S. consumers remain uncertain about the economic environment but CEOs are feeling incredibly confident, the latest survey from the Conference Board shows. READ MORE
At a public company, you are now much more likely to get a grant of restricted stock or restricted stock units (RSUs) than stock options. That’s true all the way from Apple, Amazon, Microsoft, or Tesla to new IPO companies. Whether you consult a financial advisor or do your own tax and financial planning, you need to understand some core issues with these grants to build wealth and prevent costly mistakes. READ MORE
Just how far has the US come in narrowing unfair wage gaps? Unfortunately, not very, according to a just-released report from ChartHop. READ MORE
This Post will begin a series of blog entries focused on the topic of linking executive pay to a publicly-traded issuer’s diversity and inclusion (“D&I“) initiatives. As background, there has been a recent push to hold executives accountable for the effectiveness of an issuer’s D&I initiatives by linking their executive pay to the success of such initiatives. Pretty straight forward (i.e., the success of the D&I initiative becomes one of the metrics in the issuer’s performance-based compensation strategy). READ MORE
Executive compensation clawback policies continue to grow in popularity. Although the Securities and Exchange Commission (SEC) has not yet finalized its rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) that will require publicly-traded companies to adopt compensation recovery policies, many companies have now voluntarily adopted clawback policies. READ MORE
As the pandemic wore on this spring, Christine Carrillo, the chief executive of Butlr Health, a small online start-up that matches people with therapists, decided to postpone the remaining performance reviews scheduled for her employees this year — and probably next year, too. READ MORE
As the 2021 proxy season approaches, compensation committees are actively assessing the unique challenges they face in making short- and long-term executive compensation decisions amidst the ongoing pandemic. READ MORE
The pandemic has pushed employees who receive company stock options to look for help from advisors, Schwab Stock Plan Services reported Tuesday.
Two-thirds of employees who have recently sold stock options did so because of the pandemic, according to a Schwab survey, which was based on 1,000 individuals receiving stock options. Thirty-nine percent of those surveyed said they were more likely to need financial advice due to the pandemic. READ MORE
The survey is a follow up to Willis Towers Watson's earlier survey conducted May through July of this year, which showed similar projections for the upcoming year. Most employers in the survey said they expected "a turn toward normalcy in 2021", according to the firm. READ MORE
As the world continues to evolve, it’s important for businesses to evolve with it. In light of social justice issues that arose over the summer, many CEO’s pledged they would strive for more diversity and inclusion within their organizations. READ MORE
As the months have passed during the COVID-19 pandemic, organizations are being more transparent about their financial situation with employees. READ MORE
In order to effectively manage reward programs, compensation practitioners and their senior management leaders need to understand how competitive those programs are. In making that determination, though, just how precise does the analysis have to be? To what lengths should one go to increase the level of perceived exactitude in the analysis, and is that effort worthwhile? Does the effort to squeeze out greater precision bring more meaningful results? READ MORE
Until a few years ago, pay equity analyses were seen mostly as projects driven by lawyers and statisticians to provide protection against lawsuits. In fact, we still work with rewards leaders who previously were left in the dark about the methodology and results of their pay equity analyses. What’s more, legally-driven analytical techniques resemble those applied in actual lawsuits and often cloud the view of what the data is revealing about pay fairness: READ MORE