SEC Proposes Changes to Modernize and Simplify Equity Compensation Rules

On November 24, 2020, the Securities and Exchange Commission (“SEC”) proposed amendments to Rule 701 and Form S-8 (the “Proposals”) under the Securities Act of 1933, as amended (the “Securities Act”). The Proposals are intended to (1) facilitate the ability of companies that are not required to file reports with the SEC to issue securities to compensate certain service providers, and (2) simplify the existing registration processes for compensatory offerings by reporting companies. Simultaneously, the SEC also proposed a temporary rule that would allow non-reporting issuers to issue equity compensation to certain “Platform Workers” who provide services through a technology-based marketplace platform (the “Temporary Proposal”). READ MORE

Three Tips for Effective Pay Equity Audits

Especially for growing businesses, claims of pay inequities could do substantial economic and reputational harm. If structured with risk management in mind, pay equity audits are instrumental in reducing long-term legal and reputational costs. Under relevant federal laws, employers’ efforts to remediate pay disparities may limit liability based on bad faith or intentional violations. In certain states, safe harbor protection is available for employers that take affirmative steps to reduce or eliminate pay inequities. READ MORE

SEC Proposes Changes to Equity Compensation Rules

The Securities and Exchange Commission, on November 24, 2020, proposed changes to the rules and forms that are used for compensatory securities offerings by both private and public companies. If adopted, the changes should give added flexibility to companies using equity as part of their compensation programs for employees, directors and consultants. At the same time, but in a separate release, the SEC proposed to extend eligibility under these rules and forms to participants in the so-called “gig economy” for five years. READ MORE

Apple CEO Tim Cook Salary Beats Out Median Engineer Pay

It’s good to be Apple CEO Tim Cook. According to Apple’s new proxy statement filed with the SEC, he made $14.7 million last year, which included a $3 million base salary. It was a healthy bump from 2019, when he made $11.5 million, and solidified his place as one of the highest-compensated executives in tech.

Like many of the largest tech companies, Apple has a reputation for offering ultra-high salaries. In addition, the company’s burgeoning stock price has enriched employees whose compensation packages include a chunk of equity.  READ MORE

Guaranteed Income Has Come to New Orleans

The coronavirus crisis has devastated Americans throughout the country. Millions have lost their jobs in the pandemic, and many who once had savings to fall back on now have nothing.

Recently, lawmakers signed a $900 billion coronavirus relief bill that includes boosted unemployment benefits and $600 stimulus checks. But that may not be enough to help struggling households dig out.

It's for this reason, among others, that one city is taking matters into its own hands. New Orleans is rolling out a guaranteed income program. If it proves successful, it could help residents get closer to attaining financial security. READ MORE

Why this manager put workers in charge of their own raises, career development, and reviews

One of the responsibilities Casey took off his plate is evaluating performance and assigning bonuses. Previously, he was tasked with rating employees between one and five and distributing money accordingly. Taking his new lazy approach, Casey assigned everyone a three by default. He told the team, “I’m only going to talk to you if I think you deserve less than that, and I will tell you why. If you think you deserve more, come tell me.” READ MORE

What Are the Highest Income Tax Rates by State?

When you earn money in the United States, the federal government requires you to report it and, generally, to pay income taxes on it. Depending on where your live, your state may also collect taxes on your income. In fact, while there are seven states that don't charge personal income tax, the majority of them do ask for a cut of your earnings. 

Of those states, there's wide variation in the amount you may have to pay. Since this can profoundly impact how far your money goes, its helps to know how your home state stacks up. To figure that out, check out the highest income tax rates by state.  READ MORE

Apple CEO Tim Cook’s pay jumped in 2020 as remote work lifted profit

Apple Inc. said it exceeded its internal financial targets in the past fiscal year, resulting in the company paying out 179% of the targeted bonuses for named officers.

For Chief Executive Tim Cook, that meant his cash bonus rose 40% last year to $10.7 million, Apple said Tuesday in its annual proxy filing with the Securities and Exchange Commission. His bonus had taken a 36% hit in 2019 when his pay package fell as revenue and profit declined tied to weaker iPhone sales. READ MORE

Pay transparency can address gender wage gap better than alternatives

Pay inequality issues across gender and racial lines are seeing increased attention amid the coronavirus pandemic and its disproportionate impact on women and nonwhite individuals. Transparency has been linked to fixing the gender pay gap in multiple previous studies, including one from Payscale in January 2020 and a 2019 study from three researchers at three universities that found that government transparency mandates were effective as well. READ MORE

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