Inflation is hitting everyone hard -- even Snoop Dogg.
On Tuesday, the rapper tweeted that even his professional blunt roller got a raise. READ MORE
Can salary transparency laws fix the pay gap?
Question: Are you for or against pay or salary transparency laws or anti-secrecy laws?
On the one hand, companies that offer salary transparency might attract more potential candidates. If people know the salary range for a position and still apply, they’re less likely to bail during the interviewing process. And it could close the pay gap between genders and races. READ MORE
How Sharing Your Salary Can Help Make Your Job More Equitable
Gen Z is making pay transparency more common, and now some states are creating laws to require it.
How much do you make?
Some people have no problem answering the question, but others aren't comfortable sharing that information. READ MORE
Microsoft will become first major US employer to post salary ranges for ALL job openings
Microsoft is set to become one of the first major US employers to disclose salary ranges for all its job postings in America, in a step to boost transparency for jobseekers.
The move announced on Wednesday follows a new law in Microsoft's home state of Washington, which will require such disclosures on new job postings starting next year. READ MORE
Microsoft to curb use of non-competes, drop NDAs from worker settlements, disclose salary ranges
Bending to employee sentiment and legislative mandate, Microsoft announced a series of reforms Wednesday that will curtail or end some of its most controversial workplace policies and practices. READ MORE
Pay gaps between CEOs and employees have widened
The pay gap between CEOs and their workers grew wider last year among companies paying the lowest wages.
The average gap between CEO and median worker pay jumped to 670 to 1, up from 604 to 1 in 2020, according to a new report by the Institute for Policy Studies (IPS), a progressive think tank based in Washington D.C. The report looked at the 300 publicly-held U.S. corporations that had the lowest median wages in 2020. Among the 300 companies, 49 had ratios of CEO-to-worker pay above 1,000 to 1. READ MORE
Executive Stock Options and Systemic Risk
Banks’ role in financial intermediation and the provision of other specialized financial services not only places them at the center of many important global financial markets, but also ties their health to that of other financial institutions, industrial firms, and consumers. The vast reach of banks’ activities was made apparent during the financial crisis of 2007-2009, which also highlighted the acute need for a better understanding of whether, how, and the extent to which banks contribute to systemic risk in the economy (i.e., the risk that many financial institutions fail together). Prior research into the sources of systemic risk largely focuses on the outcomes of banks’ risky activities (e.g., the composition of banks’ financing or the correlation of banks’ asset returns). However, these and other risky activities are ultimately the result of bank managers’ decisions which, we argue, are shaped by their contractual incentives. Following this intuition, we study whether and how bank executives’ compensation contracts lead to the systemic risk of their institutions. READ MORE
Investors Are Pushing Back on CEO Pay Hikes
Excessive CEO pay is coming under threat. Workers at large companies are speaking out against big CEO pay raises while investors at roughly two dozen major U.S. companies have rejected generous executive-pay packages in shareholder votes in the past year, balking at the massive pay gaps between chief executives and workers. READ MORE
Executive Recruiters Enjoying Best Run in Over 20 Years
Performance-related pay is helping drive total compensation upwards in the executive search industry, according to an early preview of Tempting Talent’s USA Executive Search & Recruitment Compensation Report for 2022. That and a growing degree of collaboration with executive search firms in the Silicon Valley venture capital community and across private equity are contributing to an optimistic outlook for the industry, despite an ongoing pandemic, inflation, fear of a recession, and the reverberations of Russia’s attack on Ukraine, among other challenges. READ MORE
Is it Groundhog Day? SEC reopens comment period for clawback proposal
Yesterday, the SEC announced that it is reopening the comment period for its 2015 proposal for listing standards for recovery of erroneously awarded compensation. Wait—didn’t they just do that? Yes, in October 2021. (See this PubCo post.) But no, that’s not Sonny and Cher on the radio. The SEC has decided to reopen the comment period AGAIN to allow further public comment in light of a new, just released DERA staff memorandum containing “additional analysis and data on compensation recovery policies and accounting restatements.” The new comment period will be open until 30 days after publication of the reopening notice in the Federal Register. READ MORE
The Earnout: Contingent Purchase Price or Compensation?
Compared to the torrid pace of M&A transactions last year, the current year seems rather pedestrian. That is not to say businesses are not being sold; they are. The purchase and sale of a business is one of the natural alternative paths in the evolution of the business. READ MORE
Why Retirees are Returning to Work — It’s Not for the Paycheck
There might be a Great Resignation going on in some parts of the American workforce, but other parts are witnessing a Great Unretirement. A recent report from the AARP, citing data from the Indeed employment website, found that 1.7 million Americans who retired a year earlier have returned to the workforce. That represents just more than 3% of overall retirees. READ MORE
These 3 factors could end the pay gap
Every year, Equal Pay Day is a reminder of the gender pay gap, marking how far into the year women in the U.S. must work to earn the same amount as men did the previous year. This year, the day fell on March 15, 2022. READ MORE
Wages are rising at their fastest pace in decades. Here's how that stacks up with inflation
The white-hot labor market has driven up wages faster than at any time since the mid-1980s, as employers struggle to attract -- and retain -- workers.
But Americans aren't rolling in dough. Inflation has also surged, with the Consumer Price Index rising by 8.3% in the 12 months ending in April. This means the cost of essentials is eating away at workers' fatter paychecks. READ MORE
Don’t Use Compensation as a Babysitter
Have you ever used a babysitter? This is when you have someone else assume your responsibilities while you take a break and focus on something else. The babysitter stands in for you and is you during the period of your absence. READ MORE
Location, Location, Location: The State of Geographic Pay Differentials
The coronavirus pandemic has proven that, by and large, remote work works.
As a result, the workforce is more dispersed than ever, and it’s likely to stay that way. And, with employees’ newfound ability to work from anywhere, geographic pay differentials have been thrust into the spotlight during the past two-plus years of the COVID era. READ MORE
Bezos Was Wrong, and Biden Was Right: Taxing the Wealthy Will Help Tame Inflation
A new report in The Wall Street Journal unintentionally sheds light on what economists, including Lawrence Summers, have long known: Higher taxes reduce spending. READ MORE
5 States With The Highest State Income Tax Burdens
Depending on your income in 2021, you may be feeling the pain of paying your state and federal income taxes. Some of you reading this post may be feeling a bit more pain based on the state within which you live, how you earn your income, and whether or not you own a home. The overall tax burden can vary widely from state to state. READ MORE
New York City Council Amends Wage Transparency Law
In 2021, New York City joined the growing list of cities and states requiring employers to include salary ranges in job postings. This law was expected to go into effect on May 15, 2022. However, after heeding concerns raised by many groups pertaining to ambiguities in the law, the New York City Council passed an amended version of the New York City Pay Transparency Law that postpones its effective date to November 1, 2022. READ MORE
Feeling Pinched on a $250,000 Salary? Just Wait.
How much does it take to feel flush in the US these days? Not even $250,000 a year will get you there, according to a recent survey by Pymnts.com and LendingClub Corp., which found that 36% of those earning at least that amount say they’re living paycheck to paycheck. READ MORE