Revised 2022 Salary Increase Budgets Head Toward 4%
In midyear 2021, most salary increase budget projections were pegged at around 3 percent to 3.2 percent for 2022. Those expectations have since gone by the wayside.
In newly released findings by The Conference Board, a membership and research organization for large businesses, which would be the highest growth rate since 2008. READ MORE
Compensation Truths You Need to Know for Success in 2022
Compensation and benefits are among the biggest drivers for attracting top talent. Like everything else, however, compensation has dramatically evolved since the start of the pandemic. The changes keep coming, so HR leaders have to keep up with the trends that are likely to surface well into 2022. READ MORE
Avoid these 5 phrases when asking for a raise—and what to say instead
Initiating a conversation about your salary is often an uncomfortable process to navigate. The fear of rejection and disappointment can make it easy to get tongue-tied and use language that might hurt your chances of getting what you want.
All successful negotiations begin with being aware of the words you use. I’ve spent more than a decade coaching Fortune 500 executives and their teams on how to achieve their objectives through effective communication. READ MORE
Costco worker's viral TikTok sparks debate about pay
A Costco employee has gone viral for posting a video on TikTok talking about her pay.
Natalie, a TikTok user who goes by the handle @natnatt21, posted a short clip on the social media platform last week, where she said that she makes $29.50 an hour as a Costco employee. READ MORE
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
U.S. workers are about to see their biggest raise in more than a decade
Americans are in line for their biggest wage increase in more than a decade, according to a report released Wednesday, as companies struggle against a tight labor market and high inflation.
Businesses are expected to bump up pay an average 3.9 percent in 2022, according to the Conference Board report. That’s the fastest wage growth since 2008. READ MORE
Here’s One Way Shareholders Can Get Companies to Act on Global Warming
Here’s one way your fund can start prodding companies to act on climate change: Link executive pay to their plans to reduce emissions that cause global warming, and then vote every year on how well executives are doing on those goals. READ MORE
Companies plan 3.9% wage boost in 2022, highest rate since 2008
CFOs setting company prices and wages for 2022 confront the prospect that a flare-up of inflation during much of 2021 may spark wage increases that, in turn, lead to bigger price gains. READ MORE
Will 2022 Break Compensation Budgets?
Going into 2022, workers' pay is all about supply and demand—and inflation. With more job openings than people looking for work and inflation at the highest level in three decades, topping 6 percent year-over-year in October, employers face pressure to increase salaries and hourly wages. 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
SEC Staff Issues Guidance On "Spring-Loaded" Compensation
The SEC issued accounting guidelines as to how companies should disclose and account for "spring-loaded awards" granted as compensation to executives. READ MORE
Equity Compensation Increasingly Becoming an Important Financial Benefit
The pandemic has changed the way employees and employers alike view their workplace financial benefits, with an increased focus on offerings like equity compensation, according to findings from Morgan Stanley at Work’s inaugural State of the Workplace Financial Benefits Study. READ MORE
States Are Seeing Steep Income Tax Revenue Growth. Will It Last?
States collected nearly $455 billion in total income tax revenue in fiscal 2021—an astounding 14.7% increase over the prior year. That’s according to the latest report from the National Association of State Budget Officers (NASBO), which covers spending through June 2021. Over two years, income tax revenue is up 15%. 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
How to Test Your Incentive Plan
Employee incentives shouldn't just garner employee satisfaction--they should garner employee innovation. READ MORE
SEC Continues Its Focus on Executive Compensation
In its latest move to press for stronger regulation of executive compensation, on November 29, 2021, the U.S. Securities and Exchange Commission announced staff accounting guidance on share-based executive compensation awards while the company is in possession of “positive” material non-public information (“MNPI”). READ MORE
Tying Purpose-Based Goals to Financial Rewards
One option is to reimagine how executive compensation is tied to various purpose-based goals of the organization. Creating an executive rewards program tied to performance metrics isn’t something new. The only difference here is that certain executive compensation elements are determined by ESG initiatives as opposed to sales or other metrics. READ MORE
