Public companies that sponsor nonqualified deferred compensation plans that require Internal Revenue Code Section 162(m) payment delays may want to consider whether removing the payment delay provision from a plan is warranted in light of the 2017 Tax Cuts and Jobs Act (TCJA) changes to the definition of a “covered employee.” The December 31, 2020 deadline is approaching to amend plans to remove Section 162(m) payment delays without the change being considered an impermissible acceleration of payment under Internal Revenue Code Section 409A. READ MORE
Cohn Shrugs Off Goldman’s Demand for Pay With Check to Charity
After refusing to return millions in pay to Goldman Sachs Group Inc., Gary Cohn has come up with a workaround that lets him walk away with the upper hand: He’s giving the money away to charity. READ MORE
This company allows workers to take a 6-month leave of absence and retain 20% pay—here’s why
The coronavirus pandemic has highlighted the U.S. child-care crisis and has already left a mark on workforce participation rates — particularly for women around the country. READ MORE
Free Shots, Cash Bonus, Firing. Employers Weigh How to Get Employees Vaccinated
U.S. workers could soon face choices such as free COVID-19 shots and a cash bonus if all get immunized, or those unwilling to be vaccinated get reassigned or even lose their jobs.
Those options are being studied by businesses hoping to bring at-home employees back without triggering a backlash or violating federal and state employment law. Companies are consulting with lawyers, health care experts and polling their workers to gauge when to offer carrots and when to use a stick. READ MORE
Biggest Proxy Firms Issue 2021 Policy Updates
The two biggest and most influential proxy advisory firms, Institutional Shareholder Services (ISS) and Glass Lewis, recently released policy updates for 2021. In addition, ISS published “U.S. Compensation Policies and the COVID-19 Pandemic — Frequently Asked Questions” (FAQs) to help companies impacted by the pandemic consider and disclose pay actions.
Reflecting two of the major current issues in America this year, ISS and Glass Lewis guidance concentrate on COVID-19’s impact on executive pay decisions, and racial and gender diversity on boards. The ISS and Glass Lewis guidance for COVID-19 pay actions will help companies navigate in the immediate, while diversity-related policy updates — in conjunction with directives from major institutional investors — will drive change in American boardrooms in the years to come. READ MORE
Location, education propel Asian income growth above US median
Asian American households saw the biggest income growth of any racial or ethnic group in the United States over the past decade and a half — almost 8%, according to figures released Thursday by the U.S. Census Bureau. READ MORE
New vaccine billionaires gain wealth as Moderna and BioNTech shares soar
The soaring shares of vaccine makers has created a new wave of billionaires, raising questions about pandemic profits amidst an increasingly unequal recovery. READ MORE
SEC Proposes to Expand Ability of Companies to Grant Equity Compensation to Gig Economy
On 24 November 2020, the Securities and Exchange Commission (SEC) proposed rules that would meaningfully expand the ability of companies involved in the “gig economy” to grant equity compensation to their workers under Rule 701 of the Securities Act of 1933 (Rule 701) and on the Form S-8 Registration Statement (Form S-8). READ MORE
Increase in the number of investors that want executive pay tied to ESG
More than two thirds of investors want executive pay tied to ESG initiatives, a move that would pressure boards to achieve social and other key targets, according to the global Edelman Trust Barometer Special Report: Institutional Investors. Sixty-nine percent of stakeholders say they want to see a link between remuneration and ESG, a 17-point jump over 2019. READ MORE
This Is the Living Wage You Need in All 50 States
Making a livable wage can be a lifelong struggle. The mounting costs of housing and basic necessities can quickly add up, leaving you scraping to make ends meet rather than saving and building wealth. And depending on where you call home, that situation can be considerably worse. READ MORE
What Are Restricted Stock Units?
One way company managers can reward employees with a stake in the business is through restricted stock units. RSUs have become a popular means of awarding equity to employees; tech startups as well as larger and more established public companies grant their employees RSUs. READ MORE
It’s holiday bonus season — here’s who could get rewarded
Target, Amazon and Walmart announced they will pay special bonuses because of the heavy toll the coronavirus has taken on its hourly workers. Not all employers will be as generous in 2020.
“Employees should not expect a holiday bonuses this year,” said Rhiannon Staples, a human resources expert and chief marketing officer at Hibob, an HR technology firm. READ MORE
Could Biden finally get the national minimum wage to $15?
On Election Night last month, one of the most hotly anticipated results from the state of Florida—beyond which presidential candidate would capture the battleground state—was voters' decision on a proposed near-doubling of the minimum wage. READ MORE
4 in 5 companies planning to change ESG measures in executive pay plans over next 3 years
Global events such as the pandemic, economic uncertainties, and social and racial injustice are sparking companies around the world to maintain or accelerate changes to their environmental, social and governance (ESG) priorities, according to a new survey of boards of directors by Willis Towers Watson. READ MORE
42% of Americans say their income is still below pre-pandemic levels
Nine months into the pandemic, 42% of Americans say their household income is still below what it was before the coronavirus outbreak began, according to a new survey. READ MORE
SEC Proposes to Modernize Ability of Companies to Grant Equity Compensation
On 24 November 2020, the Securities and Exchange Commission (SEC) proposed rules that would significantly modernize and simplify the ability of companies to grant equity compensation to their workers under Rule 701 of the Securities Act of 1933 (Rule 701) and on the Form S-8 Registration Statement (Form S-8). The SEC noted that the proposed rules were appropriate “in light of the significant evolution in compensatory offerings” since the SEC last substantively amended the existing rules. This client alert summarizes the key aspects of these proposed rules. READ MORE
Nearly 40% of Employers Weighing Salary Increase Budget Changes for 2021
Almost 40% of respondents to the “WorldatWork 2020-2021 Salary Budget Update Survey” have made, or are considering making, changes to their projected 2021 salary increase budgets since being initially surveyed in June. READ MORE
How to Negotiate and Counter a Job Offer
Being offered a job is a reason to celebrate, but it is also an opportunity to negotiate the best terms you can get, which may not come up again for a while. You should maintain a professional, friendly tone during these talks as you forge a relationship with your new employer. “Once you receive a job offer, you stop being a candidate and you start being an employee of the company to some extent,” says career coach Paolo Gallo. “The way you negotiate starts building your reputation.” READ MORE
Good vaccine news and a flurry of stock sales by executives. There’s a pattern, study finds
As they raced to develop vaccines against COVID-19, executives at some pharmaceutical companies collected huge windfalls by selling stock around the time their companies announced positive news about the vaccines. READ MORE
The Compensation Mystery
Have you ever wondered how your salary is determined? Do Compensation departments use sophisticated formulas and algorithms to determine base pay? Or does the squeaky wheel get the grease? READ MORE