How to pay your employees fairly

Are you being paid fairly? I need an honest answer.

I’ll go first, and if I’m being totally honest: In 20+ years doing startup, I’ve been underpaid way more often than overpaid. I’m willing to bet your answer is similar. I used to think salary didn’t matter, because I love what I do. But along the way I’ve learned that it’s critical to get employee pay right from the beginning. READ MORE

What to Do When Your Equity Compensation Is Granted and Vested

If you are on the receiving end of an equity compensation award, you may be overwhelmed by the amount of new information, jargon, and rules coming your way. You might also feel uncertain about how new equity grants and vesting schedules should fit into your existing financial plan.

To begin, you can start by focusing on a few fundamentals about how your specific benefits work. Regardless of what kind of equity compensation you have, two critical components to understand will be grant dates and vest dates. READ MORE

SEC Adds Its Voice to Those Looking for “Equity”-ble Treatment of Gig Workers - New SEC Proposal Modernizes Rule 701 and Form S-8

The Securities and Exchange Commission (the “SEC”) recently proposed temporary rules that would permit companies to offer equity compensation to “platform workers” who provide services available through the company’s technology-based platform. The proposed changes would amend Rule 701 promulgated under the Securities Act of 1933 (which permits non-reporting companies to issue equity compensation to employees) and Form S-8 (which permits simplified registration by reporting companies of securities to be issued as equity compensation). READ MORE

GE Won’t Try to Claw Back Jeff Immelt’s Pay

General Electric Co.’s board won’t claw back compensation from former CEO Jeff Immelt and other executives over GE’s accounting issues or Mr. Immelt’s use of a backup corporate jet, ending a three-year probe into allegations of misconduct at the conglomerate.

The investigation didn’t find evidence to support shareholders’ claims of fraud and abuse, and pursuing litigation against former leaders wasn’t in the company’s interest, according to the law firm that GE’s board hired to run the process. READ MORE

Reporting Non-Employee Compensation: A Year of Change

The IRS has made significant changes as to how non-employee compensation must be reported. In the past, compensation of $600 or more paid to non-employees for services in the course of a trade or business was reported on the Form 1099-MISC. But, compensation of $600 or more paid to non-employees in 2020 and subsequent years is now required to be reported on the Form 1099-NEC. All organizations — including government agencies — that hire independent contractors should take note of this change because it affects how compensation is reported. READ MORE

Raising federal minimum wage amid coronavirus will be a ‘disaster’ for US business

Former CKE Restaurants CEO Andy Puzder believes that raising the federal minimum wage to $15 an hour would be disastrous for businesses, especially those suffering amid the coronavirus pandemic.

“Increasing labor costs for these businesses will be a disaster,” he said on FOX Business' “Varney and Co.” “Can you imagine what this $15 minimum wage would do at a time when we're seeing tens of thousands of small businesses close?” READ MORE

Director Pay Remains a Prime Target of the Plaintiffs’ Bar

There are many benefits to being a corporate director, both professionally and financially. But there are many challenges as well, including the prospect of stockholder litigation. These benefits and challenges sometimes intersect—as in the area of non-employee director compensation. For although directors typically have the authority to determine their own compensation, what could be considered the self-dealing nature of that determination can expose them to claims that they breached their fiduciary duties in the process. READ MORE

The Last Corporate Taboo Is Ready To Be Broken, It's Time Companies Share Salaries And Total Compensation

When I was a kid, in social settings, my dad would ask people what they do for a living. He’d then innocently inquire, “How much does a job like that pay?” The recipient of the question and everyone within earshot would cringe. I was used to it, and 20-plus years later I’m asking the same questions to people as a recruiter.

He wasn’t being an insensitive, rude jerk. My father was a school teacher in Brooklyn and later went into administration. He always felt that he was in the wrong profession as it paid substantially less than what peers earned in the private sector. He was curious about just how much less he earned and what other types of careers paid. READ MORE

Is demanding a salary raise advisable during the pandemic?

Seeking a raise can be an intimidating task, especially during the pandemic, when the entire world faces a massive economic downturn and crisis. The pandemic not only saw COVID-19 destroying the lives of people but a vast number of layoffs and shutdowns of corporations.

However, if you are expecting a raise or feel underpaid at this challenging time, you might want to ask your boss about the forthcoming raise. Or is it not a good time? Your condition and concerns are understandable. However, despite the bad news, there is also a silver lining when there is a substantial growth of new jobs, raises, and promotions. As such, getting a raise during the pandemic is not entirely impossible. You need to figure out the ways to seek the raise in these turmoil times. READ MORE

Minimum Wages Increase in 25 States in 2021

According to a study by Wolters Kluwer Legal & Regulatory 25 states will raise their minimum wage in 2021, with 21 of those states enacting the increases on New Year’s day.

By the beginning of the New Year, New York and Oregon, which both have regional minimum wage rates, will see the highest wages reaching $15.00 in New York City and $14.00 in the Portland Metro Area effective July 1, 2021. READ MORE