Restricted Stock & RSUs: 3 Planning Tips From Top Financial Advisors

Equity compensation for employees is booming. As stock markets surge, companies find rejuvenated value in granting equity to employees, not just to executives. Those employees, in turn, are getting ever more comfortable with stock investing via online trading apps.

All of this means that the need for financial-planning advice is also booming, especially for employees who have grants of restricted stock or restricted stock units (RSUs). They have become the most common type of equity award now, surpassing stock options. READ MORE

A $30K raise or remote work forever? Employees want remote

Employees at some of the biggest and most well-known companies in the United States say they would choose working from home over a hefty pay raise—the latest evidence of the popularity of work-from-home benefits that has big implications for HR and company leaders.

According to a survey of 3,000 workers from companies including Google, Amazon and Microsoft by professional network Blind, 64% said they would choose a permanent work-from-home option over a $30,000 pay raise. READ MORE

Does Biden tax plan affect those with income below $400,000? It depends on your frame of reference

President Joe Biden has consistently pledged not to raise taxes on households making less than $400,000 a year.

Whether his tax proposal keeps or breaks that promise depends on one’s frame of reference.

Primarily, it’s a question of how an observer considers a taxpayer earning less than $400,000 who has a one-time income windfall, according to tax experts. READ MORE

How to maximize the value of your compensation programs

Decisions about compensation are tricky, with potential indelible impact on a company. A strategically designed compensation program helps a business elicit the desired behaviors, drive the right sales outcomes, do consistent and predictable budgeting and planning, enhance its overall performance, remain competitive in the market, and win the talent game. But when managed poorly, the effects can be devastating.

As 90% of top-performing companies utilize incentive programs to reward their sales associates and properly structured bonus schemes can increase employee performance by 44%, it is critical for boards and management teams to get compensation right. READ MORE

Companies should utilize real-time compensation data to ensure equal pay

Diversity, equity and inclusion (DEI) initiatives are often thought to be an issue that can be solved by intuition by some segment of the HR team. However, in reality, it needs to come from a data-driven approach that encompasses the entire workforce.

The primary aspect that companies usually look to, in terms of treating employees fairly, is remuneration. However, having the conversation and agreeing on the need for equality doesn’t mean it will be achieved on an organizational scale. READ MORE

Behold the Highest-Paid C.E.O.s

Six of the 10 largest executive pay packages of all time were awarded last year. This and other findings come from a new survey of the 200 highest paid C.E.O.s at public companies conducted for The Times by Equilar, a consulting firm. “Even in a gilded age for executive pay, 2020 was a blowout year,” writes The Times’s Peter Eavis.

The spike is due in large part to linking C.E.O.s’ pay to stock prices. This “pay-for-performance” structure is intended to align managers’ incentives with those of the company’s owners, the shareholders. But it also raises questions about how much credit executives deserve for rising stock prices, and whether the performance conditions attached to stock awards are suitably tough. C.E.O. pay jumped 14.1 percent last year, while the median worker got a 1.9 percent raise. READ MORE

When a Higher Minimum Wage Leads to Lower Compensation

In the U.S., we’re seeing an increasing number of calls to increase the national minimum wage to $15/hour. Many states and municipalities have already passed minimum wage hikes in the last several years, and a variety of proposals are under consideration at the federal level.

However, economists remain uncertain as to the long-term impact of these policies on the welfare of American workers. Some studies suggest that raising minimum wage has a small negative effect on employment rates, while others find no such adverse effect on employment. READ MORE

Spring into Summer and Fall Minimum Wage, Tipped, and Exempt Employee Pay Increases

Minimum wage laws can affect businesses of all sizes, whether operating nationwide, in multiple jurisdictions, or only in one state, county, or city. To help manage this challenge, below we provide, essentially, a rates-only update that details scheduled state- and local-level wage increases throughout the summer and fall of 2021 so employers can determine the minimum amount they must pay non-exempt, tipped, and certain exempt employees. READ MORE

Art Laffer, an Architect of 'Supply-Side Economics,' Says Minimum Wage Workers 'Aren't Worth $15'

Conservative economist Art Laffer told Fox News anchor Sandra Smith Tuesday, that many minimum wage workers "aren't worth $15."

Laffer appeared on Fox News alongside economist Austan Goolsbee to weigh the benefits and pitfalls of raising the federal minimum wage to $15 an hour from $7.25 an hour, where it has stayed for many years despite rises in the cost of living. READ MORE

Democrats hit major political wall in efforts to close gender pay gap, raise minimum wage

President Biden and Democrats in Congress suffered another setback in their push to boost millions of Americans’ paychecks, after the Senate on Tuesday opted against taking up a bill that supporters said aimed to ensure that women in the workforce earn the same as their male counterparts.

Even with Biden’s public advocacy — and nearly every Democrat voting to try to begin debate on the measure — party leaders could not overcome Republican opposition to advance one of the central promises they made in the course of the 2020 presidential campaign. READ MORE

Miami Workers to Receive Salaries in Bitcoin

As the mass adoption of cryptocurrencies and digital assets continues to make waves around the world, good news just keeps flowing from the United States. This time, workers in Miami may choose to be paid in Bitcoin as opposed to in USD.

This move positions the city to be one of the more crypto-friendly cities in the US. Bitcoin is the world’s largest and most popular cryptocurrency, with it seeing widespread use around the world. From Bitcoin ATMs, to the possibility of E-cars mining Bitcoin while parked, the crypto giant is out to get fiat currencies. READ MORE

Volkswagen's Former CEO, Former Audi CEO to Pay Compensation Over Emissions Scandal

Volkswagen AG said Wednesday that former executives including its former chief executive officer would settle claims connected to the car maker's diesel scandal as part of a 288 million-euro($350 million) agreement.

Former Volkswagen CEO Martin Winterkorn and former Audi CEO Rupert Stadler agreed to compensate the car maker in relation to the scandal that erupted in 2015. Mr. Winterkorn agreed to pay 11.2 million euros and Mr. Stadler agreed on compensation of EUR4.1 million. READ MORE

Split-dollar executive compensation plans: Doing it right

Companies without stock or other types of equity have a limited toolbox from which to create customized incentive/retention arrangements for top executives. Salary and bonuses are the first line of attack, but they are mostly short-term focused and involve a one-way outflow of funds. Unfunded “457(f)” deferred compensation plans can achieve incentive/retention goals, but are taxable to the executive (and potentially to the business), also involve a one-way outflow of funds and place the risk of underperformance of funding assets on the company rather than the executive. READ MORE

Trove of Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

ProPublica has obtained a vast cache of IRS information showing how billionaires like Jeff Bezos, Elon Musk and Warren Buffett pay little in income tax compared to their massive wealth — sometimes, even nothing.

In 2007, Jeff Bezos, then a multibillionaire and now the world’s richest man, did not pay a penny in federal income taxes. He achieved the feat again in 2011. In 2018, Tesla founder Elon Musk, the second-richest person in the world, also paid no federal income taxes.

Michael Bloomberg managed to do the same in recent years. Billionaire investor Carl Icahn did it twice. George Soros paid no federal income tax three years in a row. READ MORE

American Airlines asking Dallas-based employees to volunteer to work without pay

American Airlines is gearing up for unprecedented summer travel demand by asking employees to volunteer to work outside of normal hours without additional pay. 

The Dallas-based airline is asking non-union employees to help staffers at Dallas/Fort Worth International Airport, including helping travelers in international terminals, among other tasks, according to a company memo obtained by Dallas Morning News.  READ MORE

Striking the Right Balance for DEI Incentives in Exec Comp

While diversity, equity and inclusion (DEI) initiatives gained esteem at companies in recent years, the social and racial unrest of 2020 brought a more significant development into the spotlight.

Research from Willis Towers Watson revealed that more than half (52%) of S&P 500 companies include at least one environmental, social and governance (ESG) metric in the design of executive incentive plans. When broken down into each ESG measures, social reigns supreme. Within the social component lies DEI metrics, which Willis Towers Watson found in 2020 about 20% of companies in the S&P use as a part of their executive incentive plans. The number is trending up to 23% based on initial 2021 data. READ MORE

Companies are turning to unusual perks

At a time when the war for talent is heating up and burnout is on the rise, some companies are turning to perks to show appreciation and help with engagement and retention. I talked to leaders at OneDay, Pacaso, Siemens Mobility, and Chipotle about unusual benefits they're rolling out to employees.

OneDay: A remote work destination

A change of scenery can make all the difference in supporting worker wellbeing, Deena Naccarella, CFO at OneDay, told me. The video technology company’s New Digs program reimburses employees for a stay at a destination away from home where they’ll work remotely.  READ MORE