New York City Council Passes Amended Salary Disclosure Law, Paving the Way for Enactment

On April 28, 2022, the New York City Council passed Int. No. 134-A, which revises Local Law 32, New York City’s previously enacted salary disclosure law. In order to become law, the bill must be signed by New York City Mayor Eric Adams. While the mayor has thirty days to consider the bill, timing is key as the current salary disclosure law is set to take effect on May 15, 2022. If the mayor signs the bill, the effective date of the salary disclosure law would be pushed back to November 1, 2022. READ MORE

Advocates push for salary transparency as states work to close pay gaps

A growing number of cities and states are rolling out laws requiring businesses to be more forthcoming with how much their job openings pay to close the pay gap for women and people of color.

At least seven states and multiple cities have passed laws requiring more transparency with salary information over the last four years. The amount of information required varies between places, but most require salary information to be available upon request or after an interview, with exceptions for small businesses. READ MORE

Balancing Employee Compensation With Shareholder Return

Companies usually have multiple stakeholders they have to cater to including customers, employees, shareholders and vendors. The order in which these stakeholders are listed is important because this is the hierarchical importance many companies assign to each of these stakeholders. Some CEOs also might argue that the communities that the company operates in or the broader society as a whole also are stakeholders. READ MORE

NYC Wrestles With Salary Disclosure in Job Ads

Help wanted. The job: putting one of the nation's most far-reaching salary disclosure laws into practice. Location: New York City. Just four months ago, lawmakers overwhelmingly voted to require many ads for jobs in the city to include salary ranges, in the name of giving job applicants—particularly women and people of color—a better shot at fair pay. But on the cusp of implementing the measure, lawmakers will likely vote Thursday to postpone it for five months after employers waved red flags. The debate marks a prominent test for a burgeoning slate of US "pay transparency" laws. And the answer seems simple to Brooklyn restaurant server Elizabeth Stone. READ MORE

Young workers share salary information as pay transparency gains steam

Talking about how much money you make is generally seen as taboo.

Yet many younger workers are doing just that, according to a Bankrate.com survey.

Some 42% of Gen Z workers, ages 18-25, and 40% of millennial employees, ages 26-41, have shared their salary information with a coworker or other professional contact, the survey found. The poll was conducted by YouGov Plc, Feb. 16-18 among 2,449 adults, and of those 1,416 were either employed or looking for work. READ MORE

NYC salary transparency law likely to remain unchanged; additional guidance provided

The New York City pay transparency law requires that NYC employers with four or more employees include the salary range of the position in job postings. In March, new legislation was introduced in the New York City Council to amend the law. This bill, if passed, would amend the law in a few critical aspects. Among other things, the amendment would (i) push the effective date of the law from May 15, 2022 to November 1, 2022; (ii) exclude employers with fewer than 15 employees; (iii) change references to the term “salary” to read “hourly or salary compensation”; and (iv) amend the law so that it would not apply to general notices without reference to particular positions and to positions that are not required to be performed at least in part in NYC. READ MORE

Negotiating Favorable Executive Equity Terms in an LLC – Capital vs. Profit Interests

Despite the pandemic, executive recruiters face one of the strongest candidate markets in the past twenty years. You have more negotiating power than ever for executive compensation. 

When it comes to executive equity compensation, do you know that there are differences between employee equity from a corporation and an LLC? This article explains two types of employee equity you can receive from an LLC, how they compare to equity in corporations, and what favorable terms to negotiate for your executive equity compensation package. READ MORE

Comment Periods Close Again for Proposed Clawback and Pay-for-Performance Rules

Two Securities and Exchange Commission (SEC) executive compensation rules on recoupment of incentive compensation in the event of a financial restatement (clawbacks) and the correlation between executive pay and company performance (pay-for-performance), which were originally proposed in 2015 but never adopted, were reopened for public comment on October 14, 2021 and January 27, 2022, respectively. The proposed rules on clawbacks and pay-for-performance were intended to fulfill rulemaking requirements mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act). In reopening the comment periods on these rules, the SEC also requested input on certain possible expansions to the original proposals in view of the time elapsed and developments in executive compensation since the original proposals. READ MORE

Elon Musk scores hat trick of Tesla compensation goals worth $23 billion

With Tesla's strong quarterly report on Wednesday, Chief Executive Elon Musk has scored a hat trick of performance goals worth a combined $23 billion in new compensation.

The world's most valuable carmaker posted March quarter revenue and profit that surged past Wall Street estimates as it raised prices in response to inflation, offsetting the impact of a Shanghai factory shutdown. READ MORE