Tim Cook’s compensation doubled in 2020, but he fell to No. 8 on CEO pay rankings

Bloomberg is out today with its annual Pay Index report covering the year 2020, ranking the compensation of top US executives and CEOs. This year, Tesla CEO Elon Musk unsurprisingly comes in at the top, while Apple CEO Tim Cook has fallen to spot No. 8 on the list.

In last year’s rankings, Cook was the second-highest paid CEO with $133.7 million in earnings from a combination of stock awards, salary, and bonuses. In 2020, Bloomberg’s data shows that Cook’s compensation nearly doubled to $265 million, but his placement on the rankings fell to eight. READ MORE

Paid leave proves critical for talent retention

When advocating for paid family leave, Shama Skinner points to her own pregnancies as praxis.  

"There's a term that is used for the first three months of the baby's life — they call it the fourth trimester. I see why they do, because there's still such a close connection between the mother and baby during that time," she told HR Dive. "I know it's not like this for everybody, but my personal experience was that I really needed to be at home and dedicated to my baby." READ MORE

A firefighter said he had covid-19 to get paid time off. He lied and vacationed at a resort

William Jordan Carter called the Dallas Fire-Rescue Department in late March to request leave after his wife tested positive for the coronavirus. His employer granted him the paid time off, prosecutors said.

A week later, the firefighter called his deputy chief asking for additional paid time off — he said his daughter had also contracted the virus, according to an affidavit filed last week. The city gave him another week of paid leave. READ MORE

CVS will raise its minimum wage to $15 an hour

CVS will raise its minimum wage for hourly workers to $15 by next summer, becoming the latest large US chain to pledge a $15 starting rate as companies compete for workers in a tight labor market.

The pharmacy giant, which has nearly 300,000 employees, said Wednesday that it will begin increasing wages for hourly workers this month and hit the $15 an hour mark across the company next July. CVS will also increase starting rates for positions such as pharmacy technicians and call center representatives above $15. Around 65% of CVS's hourly employees already make more than $15 an hour, the company said. READ MORE

Improving Incentive Compensation Using Revenue Multiplier

Attainment-based compensation is calculated by dividing revenue by the assigned quota. In a typical business-to-business sales organization, plans are setup in such a way that 40% to 50% of the salesforce reaches the target and 50% to 60% exceed targets.  

It is not uncommon to have upside set at three times the target incentive. A payout factor is calculated by using the revenue attainment and the factor is applied to the target incentive to calculate compensation payout. Any increase in revenue is going to increase the payout factor, thereby putting the salesperson into accelerators (usually beyond 100%) and thus increasing payout. The increase in payout factor will be achieved by a revenue multiplier, which as the name implies, is multiplying the revenue amount with pre-configured factors based on the role and by products or offers. READ MORE

Why Don’t Tech Companies Pay Their Engineers to Stay?

When news broke that breakout star Regé-Jean Page was leaving Bridgerton after only one season, my initial reaction was that of shock and heartbreak. I couldn’t fathom why Netflix and The Duke of Hastings weren’t able to come to some sort of agreement. But then it hit me: my entire career, I’ve watched talented engineers leave companies for greener pastures after painfully short tenures. I’m even guilty of this myself — I left an amazing company after less than two years to join Ethena as VP of Engineering. READ MORE

Surprising inequities in compensation

Surprising inequities in compensation The gender pay gap is consistently in the news, but there are other groups in the United States’ working world who are less likely to see stories about their lower pay rates. Most people know women and nonbinary individuals overall earn less than their white male colleagues, but mothers earn even less than women without children. Other reasons some groups see fewer dollars in their bank accounts include age and disability, or they are part of racial minority groups or the LGBTQ+ community. The differential between pay awarded to white males versus other workers is getting smaller in some instances, but the gap between wages paid to white men and both Black men and women has actually worsened in the past two decades, according to one reportfrom the Economic Policy Institute.Assemble compiled data from government agencies, human resources organizations, news outlets, and advocates for equal pay to create this list of individuals and groups still struggling to achieve pay equity. Continue reading to learn why these inequities exist, and ways that employers, human resource professionals, and advocates are trying to eliminate the differences via policy reform, litigation, and other tools.Visit thestacker.com for similar lists and stories. READ MORE

Goldman Sachs hikes junior banker pay to $110,000 as salary battle sweeps Wall Street

Goldman Sachs is raising salaries for junior bankers, following the vast majority of its main rivals as Wall Street’s focus on burnout among younger employees continues.

The bank is set to raise first-year analyst pay to $110,000, second-year analyst pay to $125,000, and first-year associate pay set to $150,000, according to people familiar with the matter. READ MORE

CEO diversity: does it explain CEO-to-employee pay ratio?

According to the Economic Policy Institute, the CEO-to-employee pay ratio increased by 1000% in the past 40 years.

US public firms were mandated to report on this gap by the 2010 Dodd-Frank Act, with the first gap data becoming available in 2017.

A recent report examines the effect of CEO gender and minority status on the size of the compensation gap between a firm’s CEO and its average worker. READ MORE

Are you in the global middle class?

The COVID-19 pandemic has rewound the clock on a decade-long progressive trend of people around the world moving out of poverty and into the middle class. At the end of 2020, there were an estimated 54 million fewer people in the middle class than had been projected at the start of the year, and 131 million more in poverty. READ MORE

When Nonprofit CEOs Are Not in the Room During Board Votes on Their Pay

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

DEI is now a factor in executive pay. But there's one big disconnect.

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 boosting wages and hiring incentives to keep up in competitive labor market

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