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Wealthy Americans living in New York, New Jersey and California could face one of the steepest tax rates in decades if the legislation released Monday by House Democrats becomes law.
The proposal would roll back key parts of Republicans' 2017 tax law, including restoring the top individual income rate to 39.6%. READ MORE
Organizations that pay in minimum-wage range were affected by statutory changes at the local, state or federal level in 2021.
This is according to WorldatWork’s 2021 “Compensation Programs & Practices Survey,” which found that 41% of the 920 organizations surveyed have jobs in the minimum-wage range, with 56% of those organizations reporting they’ve been affected by changes in minimum-wage laws. READ MORE
The economic recovery from the COVID-19 pandemic has created a fervent job market that’s led to a great departure of talent, fueled by employees who feel undervalued by their current employer. Thus, some organizations are acting in a reactive manner to retain their existing talent by shelling out counteroffers at an unusual rate.
Shelly Holt, chief human resources officer of Payscale, said employers can avoid this pickle by enhancing their transparency around compensation. READ MORE
The Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”) includes a requirement that benefit statements issued by ERISA-governed defined contributions plans include lifetime income illustrations and explanations. We previously discussed these rules, both generally and when the Department of Labor issued Interim Final Rules to implement the disclosure requirements. READ MORE
One evening in early June, Leo and his family were able to enjoy a treat they hadn’t experienced in months: a sit-down meal at a restaurant.
At a fried chicken chain in a Compton, California strip mall, they splurged on a few plates of fried rice, each costing under $13.99. The money Leo, 39, makes as a mechanic never seems to satisfy the deluge of bills that pile up on his kitchen counter each month, so the modest meal felt like a luxury. “It made me very happy,” Leo says in Spanish through an interpreter. READ MORE
American household income fell last year amid the economic hit of the pandemic, reflecting the first decline in median household income since the Great Recession in 2011, according to new data from the Census Bureau.
The median household income decreased 2.9% to $67,500 between 2019 and 2020, the Census said. READ MORE
Investors finally got a glimpse of how Democrats intend to pay for their $3.5 trillion spending spree. It did not go well; the Dow sank almost 300 points, despite a slightly better than expected inflation reading.
Who can be surprised? When you snatch more than $2 trillion away from job creators and investors for the purpose of income redistribution, as Democrats propose to do via huge tax hikes, the country will suffer. READ MORE
If you're not happy with your current salary and are considering a job change, you're not alone. The COVID-19 pandemic took a toll on a lot of American workers' personal finances. Millions were left out of work. Others who fell ill with the virus saw an increase in healthcare costs. And parents of school-age children were left feeding and entertaining them largely at home, leading to increased childcare costs. Not to mention that inflation has risen to a level not seen in 13 years, meaning that it simply costs more to do everyday things like shopping for groceries and filling up your gas tank. READ MORE
It was six years ago when CEO Dan Price raised the salary of everyone at his Seattle-based credit card processing company Gravity Payments to at least $70,000 a year.
Price slashed his own salary by $1 million to be able to give his employees a pay raise. He was hailed a hero by some and met with predictions of bankruptcy from his critics.
But that has not happened; instead, the company is thriving. READ MORE
In 2020, amid the vast economic uncertainty from COVID-19, median total compensation for CEOs (excluding change in pension value) in the S&P 500 rose 2.3 percent and remained roughly flat for CEOs in the Russell 3000, according to a new report.
The Conference Board analysis also reveals that both indices saw decreases in median CEO base salary and annual bonuses. Median base salary declined 4.2 percent for the S&P 500 and 6.4 percent for the Russell 3000. While median annual bonuses generally increased across most business sectors, in aggregate, median bonuses declined by 5 percent for the S&P 500 and 4.1 percent for the Russell 3000, driven by a larger proportion of companies in sectors that saw decreases in bonuses. Equity opportunities (stock awards and stock options) were roughly flat for the S&P 500 and saw a slight 1 percent increase for the Russell 3000. READ MORE
Remote work, or some amount of workplace flexibility, is going to be expected by the workforce when the pandemic ends — at least among office workers, according to research released today by Payscale. But while 43% of workers overall expect remote work options to increase after the pandemic, only 50% of organizations say they will have a flexible or hybrid office after the pandemic.
In addition, 81% of employers do not have a compensation strategy that encompasses remote workers, although they are concerned about the impact. READ MORE
1. Your Equity Compensation Philosophy Will Be A Core Part Of Your Plan
Despite its lofty name, a compensation philosophy is a down-to-earth document that formally outlines a framework for employee compensation as well as the rationale. Yours should address attracting new talent as well as retaining and motivating current employees. And for most pre-IPO companies, the use of equity in the compensation philosophy is critical. READ MORE
FedEx Corp shareholders should reject founder and CEO Fred Smith's $54 million pay package because the logistics company gave him stock options after scrapping a cash bonus in the wake of the COVID-19 pandemic, only to reinstate it later, the Teamsters labor union said on Friday.
Smith, whose net worth is pegged by Forbes at $5.8 billion, was given a special option award "for motivation and retention purposes" in June 2020 after FedEx canceled a $3.4 million cash bonus for him, citing uncertainty around the COVID-19 pandemic. READ MORE
When Colorado’s Equal Pay for Equal Work Act (“EPEWA”) went into effect at the beginning of 2021, Colorado became the first state in the U.S. to require employers to disclose compensation (or a range of compensation) in its public job postings. The far-reaching job-posting requirements, intended to combat pay discrimination, have had some unintended consequences. Most notably, the law has made national headlines as some employers have attempted to avoid the compensation-posting requirements by excluding Colorado workers from applying to remote job listings with phrases like “the position may not be performed remotely from Colorado” or “role can be performed anywhere in the United States except Colorado.” READ MORE
Capital One Chief Executive Officer Richard Fairbank was hit with a $637,950 civil penalty to settle charges he broke US antitrust laws when he failed to report stock compensation in 2018, the Federal Trade Commission said on Thursday.
Fairbank initially failed to report receiving more than 100,000 shares of the company’s stock that year, violating a law that requires companies and individuals to report such large transactions to the U.S. Federal Trade Commission and Department of Justice. The CEO corrected the error in December 2019, the FTC said in a statement. READ MORE
The Sept. 1 charge was filed by Cher Scarlett, an Apple software engineer who said the company repeatedly stopped discussions of pay among employees. READ MORE
IBM has been sued by sales manager Mark Briggs for allegedly capping sales commission payments despite a written commitment not to do so, joining dozens of cases claiming Big Blue screws its sales staff.
The lawsuit [PDF], filed in a US federal district court in Northern California on Friday, challenges IBM's practice of insisting that it does not have a contractual obligation to pay commissions spelled out in written documents provided to its employees. It is at least the 30th lawsuit since 2014 in which IBM has argued its "incentive plan letters" are not enforceable contracts. READ MORE
For managing the performance pay in an effective manner, the performance objectives should be focussed on a particular outcome, be specific, attainable, measurable, related to time which is mostly at an individual level. According to Nimitt Thakkar, Assistant General Manager HR, CapitalVia Global Research Ltd, at the organization level, goals of cost control, rising efficiency, increasing productivity, project completion and customer service are prominent and for such goals, flexible pay and benefits become important. Organizations also try to motivate their employees, not only through monetary flexible components, but also make best use of the non-monetary flexible benefit programs. READ MORE
Earlier this year, the SEC began to explore changes that would bring improper use of these plans to heel. This new focus comes not so long after executives of pharmaceutical companies sold a collective half a billion dollars of stock in 2020 – frequently through such plans.
In examining 10b5-1 plans, the SEC has shown a spotlight on a pervasive problem trend in the realm of executive compensation – the use of supposedly long-term tools for short-term pay. The reasonable goal of a 10b5-1 plan is to schedule the sale of a set amount of stock on a regular basis. But about a third of plans since 2004 involve just a single trade. Clearly, what was intended to be a tool to provide structured liquidity over time is being gamed to provide one-off paydays instead. READ MORE
Have you been cheated out of a benefit you earned on the job? Was your job terminated for no good reason when you were on the eve of making a big score? Do you think you were fired just so the company could keep the money or equity and not pay you?
Even as a C-level, VP or other senior executive, you, like most executives, are likely to be an employee “at will”. And as an at-will employee, you may think there is nothing you can do when you have been deprived of what you rightfully earned as your executive compensation. READ MORE