Nonqualified Deferred Compensation and the Special Timing Rule HR Professionals Should Be Aware of.

Twenty years ago this month the Enron Corporation imploded in spectacular fashion and declared bankruptcy. In the weeks leading up to its bankruptcy filing, over 100 highly compensated employees raced to receive early distributions of nonqualified deferred compensation, and were ultimately successful in removing over $50 million from the company before the bankruptcy filing. One of the most significant consequences of the Enron story was enactment of Section 409A of the Internal Revenue Code (“Code”), which now governs the time and form of payment of nonqualified deferred compensation. 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

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