Matters To Consider for the 2022 Annual Meeting and Reporting Season

Companies have important decisions to make as they prepare for the 2022 annual meeting and reporting season.

We have compiled this overview of key issues — including SEC disclosure requirements, recent SEC guidance, executive compensation considerations and annual meeting and corporate governance trends — on which we believe companies should focus as they plan for the upcoming season. As always, we welcome any questions you have on these topics or other areas related to annual meeting and reporting matters. READ MORE

Fourth Circuit Requires Parity in Each Component of Compensation, Not Only in Total Compensation, Under Federal Equal Pay Act

On December 3, 2021, the U.S. Court of Appeals for the Fourth Circuit rejected the notion that under the federal Equal Pay Act (EPA), equality should be assessed based on total compensation, holding instead that equality must be satisfied regarding each component of compensation. Sempowich v. Tactile Sys. Tech., Inc., No. 20-2245, 2021 WL 5750450 (4th Cir. Dec. 3, 2021). The Fourth Circuit hears appeals from the nine federal district courts in Maryland, Virginia, West Virginia, North Carolina, and South Carolina. This case has significant implications for how employers in the Fourth Circuit structure compensation. READ MORE

Use Market Data as a Guide to Price Jobs

The stories my son Grey finds the most entertaining are those about my father’s legendary lack of direction. He loves hearing how Grandpa would regularly get lost coming home from work, a place we drive to every single day. My father would nearly always end up about seven miles from our house at a restaurant called the “Giant Artichoke.” They sold only deep-fried fresh artichoke hearts — the 1970s were kind of awesome. But Grey’s favorite stories are about Grandpa driving around with the whole family. READ MORE

Better Incentives Drive Better Decisions and Behaviors

There are many common, yet ineffective and counterproductive executive compensation practices. Unfortunately, this problem is perpetuated by the emphasis on “doing what everyone else is doing” in the field. In a world with public compensation disclosure, critical proxy advisors and sometimes alarming say-on-pay votes, it may seem less risky to compensation committee members to follow the crowd rather than to blaze a better trail. READ MORE

IRS data prove 2017 tax cuts benefited middle class the most

Biden and many Democrats in Congress have argued that their plan to raise taxes in the midst of an economic recovery is justified because it would help offset or reverse important elements of the Republican tax reform passed in 2017. Democrats have long claimed that the Tax Cuts and Jobs Act needs to be repealed or heavily altered because it unjustly benefits the wealthy at the expense of working and middle-class families.

However, the most recent personal income tax data from the IRS prove that this claim is completely false. The 2017 tax law has disproportionately benefited lower- and middle-income working families. The data show the law has also led to substantial improvements in economic mobility for middle-income and upper-middle-income households. READ MORE

Understanding Equity Compensation

Your upcoming IPO should make employees feel excited, not unsure, so it’s crucial to take care of their equity compensation needs. If employees feel they are part of the company’s success story, the stock they own can serve as a powerful reminder of their commitment and contribution. It is key that employers focus on their employees and their equity compensation every step of the way as they go public. 

Much depends on the administration provider you choose. The right one will be adept at establishing a plan for communicating with and educating employees. In this way, you equip your staff with the information they need to understand what’s happening and to act with confidence on their awards. READ MORE

Amid Tight Labor Market, Organizations Are Increasingly Relying on Bonuses

WorldatWork’s 2021 “Bonus Programs and Practices” survey revealed that organizations have heightened their bonus activity to attract and retain employees during an especially active labor market.

The four types of bonus programs measured in the survey were: sign-on, referral, spot and retention. More than one in three (38%) of 957 organizations surveyed use all four types. Overall, the trend is increasing among use of all four bonus types, and of those without a program currently implemented, consideration is also growing. Only 7% of organizations reported not using any of the four types of bonus programs. READ MORE

Walmart salaries revealed: from up to $200,000 for an engineering role to $74 hourly rates for pharmacists

Walmart pays some engineers up to $200,000 — at least in Colorado.

To determine how much Walmart pays employees, the Wall Street Journal analyzed 5,000 job offers at major companies posted in the state between August and October, after Colorado began mandating employers disclose hourly or salary compensation or range in all job postings. The state's legislators passed the law to ensure equal pay for equal work. READ MORE