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Wages are going up. That's great news for workers. But some smaller companies may struggle to absorb higher labor costs.
The Russell 2000 (RUT), an index of small cap American firms, has fallen about 2.5% in the past month while the Dow and S&P 500, home to giants such as Apple (AAPL), Nike (NKE) and Walmart (WMT), are each up more than 2%. READ MORE
Keeping nonprofit chief executive officers out of meetings when members of their boards discuss or vote on compensation can lead to these CEOs making less money and working harder.
This is a key finding from a study of nonprofit pay I recently completed with two fellow finance scholars, Benjamin Bennett and Rik Sen. We reached this conclusion after reviewing data for more than 14,700 nonprofits across the country from paperwork most nonprofits must file with the Internal Revenue Service every year, known as Form 990, and the associated Schedule J, which includes compensation. READ MORE
There's been an uptick in companies tying their executives' compensation packages with diversity goals — with a recent Mercer analysis putting the percentage of S&P 500 firms embracing the idea at 27%, which was more than double the rate from before 2020.
But experts say companies are often taking a short-term approach to the issue – a disconnect that could limit the effectiveness of the idea, given that successful diversity, equity and inclusion strategies require long-term efforts. READ MORE
Amazon is finding it necessary to boost wages and increase its use of incentives to fill some of its open positions, resulting in higher costs in its fulfillment network.
“We certainly see stronger demand for workers,” said Brian Olsavsky, Amazon’s chief financial officer, on a conference call with reporters. “So far, we’ve had good success in hiring them with our wage and benefit package that’s pretty competitive. So we’re watching it carefully. But it’s probably one of the bigger elements of inflation in our business right now.” READ MORE
Free doughnuts. Tickets to see the Los Angeles Lakers. Video visits with loved ones for people in prison. The chance to win a million-dollar lottery.
States, cities, and private companies are dangling anything they can think of to convince Americans to get a covid-19 vaccine. The idea is to nudge people who are open to a vaccine but just need an extra push—but so far, there’s little evidence these programs have had the impact some had hoped. READ MORE
Pay raises in the U.S. are returning to pre-pandemic levels but rising prices mean higher salaries aren't likely to keep pace with inflation, new research shows.
The median total U.S. salary increase budgets for 2021 are 3 percent, on par with the previous 10 years, and projections for 2022 are also 3 percent, the Conference Board reported in June. READ MORE
Tax increases may be looming. If you have stock options, restricted stock units, or company shares, now’s the time to analyze whether President Biden’s proposed tax changes could impact your financial planning, whether directly or indirectly. Some of the potential tax increases, such as a major hike in the top rate of capital gains tax, may require you to take action before any new tax legislation is adopted. READ MORE
What would it take to arouse a sense of financial restraint among America’s top corporate executives and the people who set their pay? More than a global pandemic, it turns out. READ MORE
Organizations around the world are strategizing for the post-pandemic workplace by pressing the reset button—revamping hiring practices, approaches to flex work, organizational culture and more for a new world. It’s also a prime opportunity to examine inequities in pay, experts say. READ MORE
Once, at the end of a long job interview, after discussing everything else under the sun, I asked the interviewer what the pay range was for the position. Her lips thinned; she was clearly offended. She said it wasn't something the company was comfortable sharing. READ MORE
Pressure on Activision Blizzard is mounting as more than 2,000 current and former employees signed a petition slamming what they see as the video game company's "abhorrent and insulting" response to a California lawsuit.
The petition, which was circulated Monday and seen by CNN Business, criticized the company's statements following a lawsuit filed last week by California's Department of Fair Employment and Housing, which alleged that multiple female employees were subjected to gender discrimination, sexual harassment, and unequal pay. READ MORE
Many federal contractors would have to pay workers at least $15 an hour by 2022 under a proposed rule from the U.S. Department of Labor (DOL) that would implement and enforce a recent executive order.
In April, President Joe Biden signed Executive Order 14026, which aims to promote "economy and efficiency in federal procurement by increasing the hourly minimum wage paid by the parties that contract with the federal government to $15.00 for those workers working on or in connection with a federal government contract," according to the White House. READ MORE
Congress will pass an embarrassing milestone on Saturday: a dozen years without so much as a penny increase to the federal minimum wage.
The wage floor set by the federal government remains just $7.25 per hour, well below a living wage everywhere in the country. A worker earning that pay with a full-time schedule would bring home an annual salary of only $15,000, hardly enough to cover basic living expenses for a single person, let alone a family. READ MORE
Despite a labor shortage brought about largely by the COVID-19 pandemic, companies can find workers by offering "fair wages," Brian Deese, the top economic adviser to President Joe Biden, told Yahoo Finance on Monday.
Deese, the Director of the National Economic Council, pointed to coronavirus fears and child care obligations amid remote schooling as key reasons why unemployed Americans have stayed on the sidelines. However, employers can overcome these obstacles by providing fair compensation, he added. READ MORE
Only 3% of American companies are freezing employee pay, and many plan to raise pay in 2022, according to a new Willis Towers Watson WLTW 0.38% survey.
Companies project average salary increases of 3% for executives, management and professional employees and support staff next year — up 2.7% from 2021.
The largest increases are projected in sectors like high tech, pharmaceuticals, health care, media and finance, oil and gas and retail. READ MORE
Nothing, it seems, can burst the bubble of America's highest-paid chief executive officers. Last year, even as the economy recorded its worst year for job losses since 1939, CEO pay continued to grow apace. At the same time, worker pay – for those lucky enough to remain employed – lagged even farther behind what the nation's top executives raked in. READ MORE
Have you owned a stock that declined in value significantly because the CEO or CFO of the company committed a misdeed, financial or otherwise? And then to add insult to injury, the Securities and Exchange Commission imposed a substantial fine on the company. You say to yourself, why penalize the company — and therefore me? Why not go after the CEO’s compensation? READ MORE
No matter the type, employer stock is fraught with contradictions.
On the one hand, it’s a key source of wealth for many households. It's also typically issued as a bonus, above and beyond regular compensation, so employees who receive it might be inclined to think of it as "gravy," or mad money. READ MORE
As organizations emerge from the COVID-19 pandemic, hiring is on the rebound—and that is especially true in the information security ranks where demand has outstripped supply for years. Despite the work-from-home push opening opportunities to hire beyond the usual geographical boundaries, many organizations continue to struggle to find these needed workers, which is putting pressure on salary and benefit offerings. READ MORE
Changes to short-term incentives (STIs) prompted by the global pandemic/economy are largely temporary, and some organizations cite the pandemic as the reason for modifying long-term incentives (LTIs). These findings are captured in the "2021 Incentive Pay Practices Study" of publicly traded, privately held, nonprofit, and government organizations conducted by WorldatWork in partnership with Compensation Advisory Partners (CAP). WorldatWork has been conducting incentive pay surveys since 2007 with CAP (via acquisition of Vivient Consulting). The four-part survey provides a sweeping overview of approaches to incentive pay, including types of STI plans; annual incentive plan (AIP) measures, eligibility, targets, and payout frequency; long-term incentive (LTI) prevalence; incentive plan budgets (actual and estimated); and more. READ MORE
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