On October 14, Chairman Gensler announced that the Securities and Exchange Commission (SEC) would reopen the comment period for the controversial compensation clawback rule that it had initially proposed in 2015 in response to requirements of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (the "proposed clawback rule"). The proposed clawback rule would direct stock exchanges to require listed companies to implement a clawback policy for incentive-based compensation paid to executive officers when a company has to restate its financials in a wide range of circumstances, including instances where financials were merely found to contain errors due to human or other error. READ MORE
SEC Proposes to Increase Reporting of Executive Compensation Votes
The Securities and Exchange Commission (SEC) has proposed a new rule that would require an institutional investment manager to report annually on Form N-PX how it voted proxies relating to executive compensation matters (i.e., "say-on-pay"). The proposal also includes amendments to Form N-PX that would enhance the information that registered closed-end investment companies, mutual funds and exchange-traded funds are required to report annually on Form N-PX. READ MORE
SEC Proposes Enhanced Disclosure Rules for Stock Repurchases
The US Securities and Exchange Commission has proposed amendments to its rules regarding disclosure about issuer repurchases of its equity securities, often referred to as buybacks, including a new proposed Form SR to be filed with the SEC. As proposed, these new rules prescribe considerably greater disclosure relating to buybacks and, as with the proposed rules on 10b5-1 plans, have been met with strong statements of dissent by certain SEC Commissioners. READ MORE
SEC Proposes Amendments to Rule 10b5-1 Plans and Increased Disclosure About Insider Trading Policies
Major changes may be on the horizon for "Rule 10b5-1" plans, which allow (1) company insiders to sell their company's stock (often an important piece of an employee's compensation package) or (2) an issuer to repurchase its shares, each at times when it otherwise might be prevented from doing so under the insider trading laws designed to prohibit trading by those who possess material non-public information (as is often the case for a company's officers, directors and management) or because of issuer-imposed blackout periods. READ MORE
Jimmy John’s founder predicts inflation will match fast food bill to minimum wage
The U.S. economy has been recently rocked by rising inflation and Jimmy John’s founder Jimmy John Liautaud predicted pricing will hit a new milestone in an interview with Fox News Digital.
At Turning Point USA's AmericaFest, the sub shop dynamo pressed his confidence that inflation will spike the price of Americans' fast food bills to equal the minimum wage. READ MORE
5 tips for adjusting wages to high inflation, labor shortages
CFOs blindsided this year by the Great Resignation of workers are responding with a Great Recalibration of wages.
Private sector hourly wages rose 4.8% in November compared with 12 months before, according to the Labor Department. CFOs will crack open company cash boxes even more in 2022, according to business surveys, with pay increases ranging from 3.9% (Conference Board), to 5% (Grant Thornton), to 5.2% (Deloitte). READ MORE
Minimum Wage Increases and Revised Exempt Salary Thresholds
Before ringing in the New Year, employers should carefully evaluate whether they need to adjust their current practices to ensure that they remain compliant with state and local laws, including those relating to minimum wage and salary thresholds for exempt employees. READ MORE
Minimum wage is about to rise in 21 states, 35 localities as more embrace $15 an hour
This was the year that low-wage workers finally gained significant bargaining power and wielded it to snare big pay increases.
But that’s not stopping many states and cities from cementing at least some of those advances into law. READ MORE
Hot inflation erasing Americans' wage gains
The hottest inflation in nearly four decades is eroding wage gains for a majority of Americans working at the largest and most profitable companies in the country, according to a new analysis.
The findings from the Brookings Institute, a centrist think tank, found that soaring inflation has erased at least half of the average wage gains for frontline workers employed by 13 of the largest and most profitable retail, grocery and fast-food companies in the U.S. READ MORE
More businesses offer pay in cryptocurrency in a bid to lure younger workers
Stephen Gerrits, a senior at Clemson University in South Carolina, has a part time gig with a start-up. He gets paid in cryptocurrency.
“Why not take the chance or the opportunity to kind of strike it rich, get some money out of it?” said Gerrits. READ MORE
Projected Needs in 2022 Drive Increases to Previously Planned Salary Budgets
WorldatWork’s “Salary Budget Quick Poll” confirms that organizations have evaluated the environment and are increasing their previously planned salary budgets to address the competitive labor market and inflation. This increased spending is still falling short of what the majority of responding compensation professionals say they feel is needed to stay competitive in the talent wars. READ MORE
Pay Compression Concerns Linger Heading into 2022
As the year winds down and organizations finalize their budgeting and forecasting for 2022, salary budgets are of utmost concern this year.
While the tight labor market proved profitable for many employees who switched jobs at fervent levels during the “Great Departure,” it’s put employers in a particular pickle for 2022 and beyond. New hires in the past year came aboard many organizations with the perks of salaries well above the usual market rate. READ MORE
Compensation Challenges in a Tight Labor Market
Employment growth was slow in November, with only 210,000 jobs being added to the American economy.
That number fell short of economists’ expectations, but there still seems to be more available positions than there are people to fill them. READ MORE
SEC Commissioner Voices Additional Support for ESG Disclosures
Last week, SEC Commissioner Crenshaw--one of the Democratic members of the SEC Commission--addressed the Center for American Progress and the Sierra Club, and availed herself of the opportunity to once again vocally express support for the ESG disclosures that the SEC is planning to promulgate in the near future. READ MORE
As Inflation Rises, Negotiating Compensation Becomes Key
As we head into 2022, many technologists are wondering whether their pay will keep up with skyrocketing inflation. Although the Federal Reserve and other central banks around the world are enacting policies to keep inflation under control, messy supply chains and other macroeconomic issues have caused prices to spike. READ MORE
Businesses aren't ready for how remote work is changing compensation
If you are in a leadership position and still on the fence about remote work, chances are high that you are underestimating the extent that workers value workplace flexibility and expect the option to work from home to continue after the pandemic. READ MORE
What About Now? – 83(b) Tax Rules Applicable to Early Exercise of Stock Options
Some years ago, I published an article on the importance of understanding the tax rules applicable to equity grants, with a particular focus on being aware of the timing rules for filing an 83(b) election and the importance of making timely elections (available here). READ MORE
US Companies Have Wage Hikes Planned for Next Year, Survey Suggests
US Workers are set for their biggest bump in pay since 2008, according to a survey of US businesses conducted by American think tank The Conference Board.
The companies involved in the survey – half of which employed more than 10,000 people on their payroll – are setting aside bigger proportions of their budgets to provide wage rises. READ MORE
25 States Where the Minimum Wage Is Going Up in 2022
Workers in half of the nation will earn more money in the new year thanks to an increase in the minimum wage. That’s good news for older workers , because research has found that hikes in the minimum wage help them stay in the workforce longer, leading to improve d finances in retirement. READ MORE
FedEx says it wants to keep seasonal workers past the holidays and that pandemic wage increases are 'here to stay'
FedEx may have been listening to President Joe Biden when he shout-whispered, "Pay them more."
Its wage increases are making it a standout among companies solving the labor shortage, and its CFO Mike Lenz says higher pay is "here to stay." READ MORE