Chief executive officers are the highest ranking corporate executives, and their compensation often reflects as much. Across the 350 largest companies in the United States, the average CEO made $14.5 million in 2019. All things being equal, it would take the typical American about 400 years to earn that amount. READ MORE
Bolstering ESG in the proxy
At Nasdaq, the proxy statement is produced internally by a cross-functional working group whose members all have additional jobs to do. This team includes representatives from investor relations, internal audit, legal, the corporate secretary and the design team.
It’s all the more impressive, then, that Nasdaq’s 2020 proxy statement has been judged 'best in class'. Erika Moore, Nasdaq’s assistant general counsel, says it takes the working group about six months to complete the proxy statement each year. READ MORE
IRS Finalizes Regulations under Section 162(m)
The Tax Cuts and Jobs Act (the "Act")--signed into law in December 2017--made several substantial changes to Section 162(m) of the Internal Revenue Code ("Section 162(m)"), which limits a publicly traded corporation's business expense deductions for the compensation paid to its "covered employees."1 The Internal Revenue Service published proposed regulations (the "Proposed Regulations") regarding revised Section 162(m) on December 20, 2019, and released final regulations (the "Final Regulations") on December 18, 2020. READ MORE
NFL player to be paid in bitcoin
In May 2019 NFL player Russell Okung tweeted "Pay me in Bitcoin" and now that appears to be happening.
The Carolina Pathers tackle will receive half of his $13 million salary in the cryptocurrancy. READ MORE
These tech companies are paying workers the same rates across US
Tech workers and employers alike are beginning to question location-focused pay scales. A handful of companies are moving to abandon them altogether.
In setting pay without regard for location, tech companies including Reddit Inc. and Zillow Group Inc. are making a potentially expensive gamble to retain talent and gain a hiring edge. READ MORE
Another Record MBA Pay Year At Harvard Business School
Graduating in the midst of the pandemic, Harvard Business School MBAs set yet another record in median pay. The total median compensation for an HBS grad this year reached $173,500. The total including sign-on bonuses and other guaranteed first-year compensation was less than a percent of an increase over last year’s $172,090 yet nevertheless a new record for MBA graduates. READ MORE
CEO pay: Alphabet, Intel and Microsoft CEOs are among the highest paid in America
CEOs are the highest ranking corporate executives – and their compensation often reflects as much. Across the 350 largest companies in the United States, the average CEO made $14.5 million in 2019. All things being equal, it would take the typical American about 400 years to earn that amount. READ MORE
GoDaddy tests employees with phishing email promising Christmas bonuses
Might as well have offered a lump of coal.
Internet domain behemoth GoDaddy sent employees an email promising a Christmas bonus — that turned out to actually be a computer security test. READ MORE
How Will Compensation Programs Shift In 2021?
We can all agree that 2020 brought a seismic shift to virtually all aspects of our lives, from health and safety concerns to uncertain economic futures for individuals and organizations alike.
As we try to put this difficult year behind us and forge into 2021, it is imperative that corporate leaders focus on an economic recovery that benefits all levels of employees and has a focus beyond simply profits. READ MORE
File “1099-NECs” Time to Report Nonemployee Compensation
Starting in 2020, companies that pay at least $600 for services performed by someone who is not their employee are required to use the new Form 1099-NEC to report the nonemployee compensation. The Form 1099-MISC will no longer be used to report such compensation. READ MORE
Executive compensation regulations finalized
The IRS issued final regulations (T.D. 9932) on Sec. 162(m), which disallows a deduction by any publicly held corporation for employee remuneration paid to any covered employee to the extent that the employee’s remuneration for the tax year exceeds $1 million. The rules finalized proposed regulations (REG-122180-18) issued last December. READ MORE
More companies linking ESG initiatives to executive incentive plans
A trifecta of global events—the coronavirus pandemic, economic uncertainty, and the social justice movement—has significantly accelerated the need for companies around the world to link environmental, social, and governance (ESG) initiatives to their executive incentive plans, according to a recent poll. READ MORE
Performance Management: Employee Accountability
Companies work hard to attract the right people, and they work equally hard to support those employees’ development and growth within the company. Sometimes employees do not or cannot perform at the level needed. Accountability and support work together to ensure employees and companies have a mutually beneficial relationship. READ MORE
Supreme Court to consider limits on student athlete compensation
The U.S. Supreme Court agreed Wednesday to take up the NCAA's appeal of a lower court decision that loosened the limits on compensation given to student athletes. READ MORE
Can Companies Use the Outside Sales Exemption During a Pandemic?
COVID-19 has altered the way nearly every employee performs their work. Videoconferencing and phone calls have largely replaced in-person visits and face-to-face meetings in many workplaces. By extension, many sales employees who used to visit customers in person now do so remotely. While convenient, this practice may compromise their status as exempt employees under federal and state wage laws, thus forcing many employers to get creative to stay in compliance. READ MORE
Why Agencies Should Invest in Managers (and Pay Them More)
The pandemic has created an opportunity for government to change the way work gets done. Managers will be the key to success. READ MORE
“Gig” Workers May Become Eligible to Receive Equity Compensation
The Securities and Exchange Commission (the “SEC”) recently voted to propose temporary rules to permit companies to provide equity compensation to certain workers known as “gig” or “platform” workers. READ MORE
Argo Ex-CEO to Pay $450K to SEC for Not Disclosing $5.3M in Personal Perks
The Securities and Exchange Commission has settled with former Argo Group chief executive officer and president Mark Watson III over his role in the firm’s failure to disclose more than $5.3 million worth of perks and personal benefits.
The SEC said Watson has agreed to pay a fine of $450,000. READ MORE
Companies Plan to Link ESG Goals to Executive Pay
Companies are increasingly establishing executive positions to cultivate ESG strategies but recent data suggests they won’t stop there. Many of these firms will also be taking steps to tie or link executive pay with attaining ESG goals, according to a new survey from Willis Towers Watson. READ MORE
Will 2021 be the year of alternative benefits and compensation?
A shift in employee compensation has been a long time coming and, according to SemperVirens’ Allison Baum Gates, Covid-19 has accelerated this. READ MORE