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If Apple’s (AAPL) example is any indication, the customary springtime challenge between shareholders and corporate boards known as proxy season will result in more concessions by management this year.
On March 4, only 64% of shareholders voted to approve Apple’s executive compensation plan, with naysayers including Norway’s $1.3 trillion sovereign wealth fund, which owns 1% of Apple’s shares. READ MORE
IBM moved to appease shareholders that last year revolted against executive compensation proposals when they contested the massive one-time equity award granted to former Red Hat boss Jim Whitehurst.
Whitehurst, who was made IBM President following Big Blue's $34bn buy of Red Hat, was to be handed a compensation package of more than $27m last year, including $22.4m in stock awards. This upset investors. READ MORE
What do employees really want from their employers? Lavish perks, ranging from shorter workweeks to signing bonuses, are currently being used by various companies to attract workers. Companies recruiting employees, however, might want to look beyond using the carrot-and-stick approach to recruit and retain talent. READ MORE
Striking a balance between investors and employees when having a 409A valuation conducted on a company’s share price is more manageable than many CFOs think, a valuation specialist says. READ MORE
How clear is the line of sight between your performance pay programs, strategically linked performance metrics and the organizational strategy? Do your managers see these performance measures as they really are (imperfect proxies for larger, intangible strategic constructs), or do they focus on the performance measures themselves as the ultimate goals? READ MORE
Amid the “Great Resignation,” equity compensation has become more critical for public and private companies competing for talent across the globe, according to the latest proprietary research report from Morgan Stanley at Work.
To gain an edge, the report finds companies are rolling out creative solutions in their plan design to improve retention. READ MORE
We continue to stand at a crossroads in the world of work. As a result of the past two years of adapting and evolving, organizations globally have charted new business and talent strategies, and this has had a significant impact on the direction of reward programs. During this time, Korn Ferry has gathered insights into how organizations are adapting their reward programs in response to a rapidly changing world. READ MORE
Environmental, social and governance (ESG), sustainability and corporate responsibility matters touch every area of a business, and the breadth of related metrics is expansive. Most organizations have done some work in this realm. But many find the amount of change, data and transparency needed to be overwhelming. Each aspect of an ESG program is complex, and organizations seeking to make progress may struggle with how to implement it effectively. One trend we see increasing is organizations linking performance in ESG metrics to executive compensation. This strategy is one way for businesses to show ESG is being prioritized and aligned with business goals – but this conversation is not without nuance. READ MORE
Apple Inc (AAPL.O) shareholders approved Chief Executive Officer Tim Cook's annual compensation in a virtual meeting on Friday, and voted in favor of a proposal urging Apple to oversee a third-party civil rights audit of the company's policies and practices.
By approving Cook's pay package with 64.4% of votes cast in favor, investors rejected some concerns, including from proxy advisory firm Institutional Shareholder Services (ISS), over the magnitude and structure of his equity award. ISS had urged shareholders to vote against the pay package. READ MORE
In an era where TikTok stars outearn scores of CEOs of top earning publicly traded companies, executive compensation is no less important to the investing public or to companies striving to attract and retain top talent. Indeed, just this year the CEO of Starbucks received a 39% pay increase. Such soaring executive compensation has not escaped the notice of the SEC. READ MORE
Stock-based (equity) compensation has become more critical for companies competing for talent, new research shows.
Financial services provider Morgan Stanley at Work's new The State of Equity Plan Management 2022 Report is based on an October 2021 survey with responses from 408 leaders responsible for managing equity plan compensation programs at public and private companies with at least 100 workers. (Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges.) Respondents included chief executive officers, chief financial officers and chief HR officers, among others. READ MORE
Companies’ most frequent response to “the great resignation” is to raise pay. In fact, average increases were around 3% at the end of 2021, and many employers are planning to raise increases this year.
These small-looking percentages disguise how many dollars they represent among corporations and within our economy as the total jump in percentage increases they represent equals 54%. READ MORE
In response to today’s tight labor market, more companies are looking at boosting pay this year.
WorldatWork’s January 2022 “Salary Budget Quick Poll” revealed that organizations are increasing their previously planned salary budgets to address the competitive labor market and inflation. The poll, which had more than 200 compensation professional participants, reported an average salary budget increase of 4.0% and a 5.0% median. The WorldatWork “2021-2022 Salary Budget Survey,” which was released in August 2021, projected 3.3% average and 3.0% median for 2022 overall salary budget increases. The same study stated an anticipated 2.9% average and 3.0% median budgeted merit increases for 2022. READ MORE
If you want to know one thing job candidates want to find in your job listing, it’s salary ranges. How else will they be able to decide if your position, which seems perfect for them, will allow them to pay their mortgage, bills and other financial commitments.
Yes, we’re in the mist of the Great Resignation. Yes, it’s currently an employees’ market right now. And, unfortunately for employers, they have the upper hand when it comes to getting their demands met. READ MORE
Target announced Monday that it is raising its starting wage for workers in some positions to up to $24.
The Minneapolis-based retailer said the increase will apply to hourly workers at its discount stores, supply chain facilities and headquarters. READ MORE
Data, analytics, and AI responsibilities are led by those in roles that include chief data and analytics officer, chief data scientist, and head of machine learning or AI. But what backgrounds do these executives come from, how much are they paid, and how diverse are the roles they are being drawn to? It’s all found in a new Heidrick & Struggles’ “Data, Analytics, and Artificial Intelligence Executive Organization and Compensation Survey” report, which examines both organizational structure and compensation for executive roles with AI and/or data analytics responsibilities. The report was authored by Ryan Bulkoski and Kristin van der Sande. READ MORE
Corporations—particularly public corporations—typically include some form of equity (corporate stock) in their executives’ pay. That equity can take different forms, each with its own tax and investment consequences. Whatever the form of equity compensation, it typically vests—or becomes available to the employee—over a set time, often three to five years. The goal is to reward loyalty and make continued employment remunerative, with less turnover by more valuable employees. Employees who leave before that compensation vests never receive it. READ MORE
Sales departments aren't immune to the heightened rate of employees leaving their roles for positions elsewhere, commonly referred to as the Great Resignation. According to LinkedIn data, in late 2021, sales departures increased by 39% compared to average churn. READ MORE
“Women earn 82 cents for every dollar that a man earns” is a phrase we hear often reverberated from the left. There are rallies with signs, graphics on social media, and countless columns arguing for equal pay for women using this slogan. This must mean that women need the government to intervene on our behalf, right?
Pay discrimination on the basis of sex is already illegal. According to the Equal Pay Act of 1963: READ MORE
Earlier this month, minimum wage advocates announced a massive $25 million campaign to raise the minimum wage and eliminate the subminimum tipped wage in 25 states, with the goal of getting both done by the United States’ 250th birthday in 2026. This campaign couldn’t have come at a more important time. Record-breaking inflation and a 12-year-stagnant federal minimum wage have combined to leave countless working Americans struggling to afford their most basic needs despite working full-time jobs. Congress must act now to raise the minimum wage and lift millions of working Americans out of poverty. READ MORE