SRI, CSR, GRI, ESG; Stakeholders, B-Corps, 3BL — what to make of this acronym soup? Thirty years ago, ideas of investing and managing beyond profits and shareholder return for social responsibility were new, aspirational, largely driven by individuals and presumed to come at the cost of making money. Not so anymore. READ MORE
Winds of Change Swirl Around Executive Compensation
Just over a year ago at a WorldatWork gathering of senior executive compensation leaders, we were noting the relatively slow pace of change in our field at that moment. Change and challenge tend to come in waves, and we were trying to anticipate when the next wave would hit, and how we would respond.
A few months later, we were all hit with successive waves of challenge and change that have characterized 2020. As we finish this tumultuous year, what can we expect in 2021, and how do we prepare? READ MORE
What You Must Know Before Changing the Sales Compensation Plan
2021 (thankfully) is weeks away. The end of the year is when many leaders tend to consider transforming their sales compensation plan since a new year equals making a fresh start. If you are a leader contemplating changes, I would suggest that a real purpose be at the core of any new compensation plan. The plan should be designed to incent individuals to perform the way leadership desires in support of the company’s goals. READ MORE
We’ll never solve the wage gap without better, transparent data
If your company released a document with everyone’s compensation, would you be shocked by what you saw? The prospect of compensation transparency can be a powerful litmus test for equal pay in the workplace. When comp planning is fair and unbiased, employees across the board should feel good about how salary and equity is allocated and how that ties in to their experience, roles, level, and function. READ MORE
Neiman Marcus employees rankled by bonuses paid to top executives
Neiman Marcus emerged from bankruptcy with a cushy perk for its top execs — and now its leaders are being accused of escaping the belt-tightening they imposed on everyone else. READ MORE
IRS Announces Adjusted Plan Limits for 2021
The Internal Revenue Service has announced cost-of-living-adjusted limits for 2021 that affect the operation of tax-qualified retirement plans, including 401(k) plans and certain other types of employee benefit plans, including deferred compensation plans that may be subject to Internal Revenue Code §409A. The amount by which the limits are adjusted each year is based on a cost of living index. Not all limits increase every year. In connection with the increased limits for 2021, employers should revise participant communications and election forms, amend plan documents and summary plan descriptions and update all payroll and/or human resource systems with the new dollar amount limitations. READ MORE
Nonqualified Plans Helping to Meet the Needs of Participants and Plan Sponsors Amid COVID-19
Despite a challenging year for workers and businesses alike, new research conducted by Principal® indicated that nonqualified deferred compensation (NQDC) plans - employer-sponsored benefits plans for key employees – continued to be valuable in helping employers and key talent achieve their goals. Principal gathered and analyzed data from nearly 1,200 plan participants and 137 plan sponsors nationwide to dive into their thoughts about NQDC plans and how their perspectives may have changed this year due to the pandemic. READ MORE
Public Company Nonqualified Plan Amendments May Be Required by December 31: The Law of Unintended Consequences Strikes Again
The Internal Revenue Code is famously complicated, and changes to discrete parts of the code—such as those adopted by the Tax Cuts and Jobs Act of 2017 (TCJA)—have a notorious history of leading to unpredictable and unintended consequences. One such consequence may require prompt action by publicly-traded companies to mitigate the impact of a common provision in nonqualified deferred compensation plans relating to the limitations on deductions for excess compensation paid to top executives. READ MORE
409A/162(m) Payment Delay Provisions
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