After you receive that next big raise at work, or reach a certain economic level, you may think you’ll achieve contentment, happiness, or peace. The reality, though, is that such levels may very well be false summits that provide illusory benefits and ultimately, lead to just the next goal to reach in an ever-upward tilting treadmill. More, it turns out, may not be better; and there are different ways to achieve greater levels of contentment and happiness, regardless of your financial resources. READ MORE
Pay Transparency Laws Are All The Rage
Pay transparency laws are catching fire in legislative bodies around the country. As we have previously reported, these laws, which target pay equity, have gone into effect in a number of jurisdictions, such as Colorado and New York City in recent years.
New York State is one of the latest to pass such a bill (on June 2, 2022) that requires private employers in the state to publish salary or wage ranges in all job postings. The bill, which has been passed by the state legislature and awaits the signature of Governor Kathy Hochul, will become effective 270 days after it is signed. READ MORE
How to Attract and Retain Employees During the Great Resignation: Restricted Stock
The “Great Resignation” of 2021 and the low unemployment rates in the first half of 2022 have caused businesses to increase their focus on employee retention. What options do companies have to attract and retain employees in such a difficult labor market? READ MORE
U.S. laws support the collection of income tax, despite claims otherwise
A social media post that claims U.S. laws don’t support the collection of income tax makes its case using debunked information and features speakers who’ve been convicted of federal tax crimes.
"To date, nobody has been able to show that there is a law for the average American citizen working day in and day out to pay an income tax," says a person identified as Tom Selgas, in a TikTok video shared July 15 as a reel on Facebook. Selgas was convicted by a federal court in 2020 of income tax evasion. READ MORE
Can Recruiters Ask About Your Salary?
During a preliminary interview, a recruiter asked me about my current salary. Is that something they can legally ask? If so, how should I answer? READ MORE
If You Can’t Get A Salary Increase Due To Inflation, Ask For This Instead
With inflation raging, which is escalating the costs of everything, you may be thinking about asking for a raise. It’s a reasonable request. With the inflation rate spiking over 9%, your paycheck doesn’t go as far anymore. The average American household will have to spend an extra $5,200—$433 a month—just to consume the same goods and services as last year. Here’s the dilemma: it's a reasonable ask, but the economy, job market and sentiment of business leaders have shifted. READ MORE
Nothing Phony About Using Phantom Equity as Compensation
When it comes to compensating an employee with a grant of equity, it is not a perfect world when considering the impact of taxation. A perfect world when granting equity compensation from a tax perspective would include at least the following: READ MORE
What Salary Does It Take to Be Comfortable?
If you're satisfied with the amount of money you earn, consider yourself fortunate. Many workers these days are woefully underpaid, and at a time when living costs are soaring, that's not a good thing. But even if you earn a more generous salary than the average American, it may not be enough to get you the lifestyle you want, or to allow you to meet goals like buying a home or building a solid nest egg for retirement. READ MORE
Gen Z Is Overestimating the Average Starting Salary by $50K
New college grads are in for some reverse sticker shock. A recent survey by Clever Real Estate found that while the average starting salary for college graduates is $55,260, current college students expect to make $103,880 at their first job. READ MORE
CEO Pay Increased by Nearly 20% Across 500 Largest Companies
CEO pay at the 500 largest U.S. companies by revenue increased by 18.9% in 2021, according to the 2022 edition of Equilar’s CEO Pay Trends report, which features commentary from Meridian Compensation Partners. Median compensation for Equilar 500 CEOs soared to $14.2 million, rebounding strongly from pandemic declines. READ MORE
CEOs average pay in 2021 was 324 times higher than employees
CEOs of the top 500 companies in the U.S. earned 324 times more money in 2021 than their employees, with executive compensation climbing $2.8 million dollars in the past year on average as worker wages declined, according to an AFL-CIO report.
While the report found that real worker wages fell 2.4 percent in 2021 after adjusting for inflation, the average compensation for the top CEOs in the nation last year was $18.3 million, a more than $5 million increase over the past decade. READ MORE
Is offering equity compensation to employees still a good idea?
Thousands of companies – both public and private – offer equity compensation to employees. Every employer does so for a reason, but many may be reconsidering after a few painful months in the equity markets.
Starting questions
Before you make the decision to start, keep or drop an equity compensation plan, consider these questions. READ MORE
More companies adding diversity measures to executive compensation formulas
The inclusion of diversity, equity and inclusion (DEI) metrics as compensation incentives is quickly becoming one of the biggest trends in executive compensation pay plans.
Nearly 46% of companies in the S&P 500 used DEI metrics in pay plans last year, up from 30% a year ago, according to a recent report from executive compensation firm Semler Brossy Consulting Group. READ MORE
Employers plan 4.1% pay raises for 2023 — the largest since the Great Recession
Compensation has been top of mind for employers as they’ve navigated the tight labor market over the past year and look to a future that doesn’t appear to be letting up competition-wise, despite concerns about a coming recession. READ MORE
These were the highest-paying Silicon Valley tech companies in 2021
Silicon Valley is synonymous with a strong concentration of wealth, both for the tech companies that populate the area — with some of the highest valuations in the world — and for its employees, who are also paid incredibly handsomely.
Although the rising costs of living are driving some Bay Area residents out, the opportunities — and compensation — in tech are too abundant for a certain demographic to ignore. Companies like Meta (formerly Facebook), Apple and Google have long held reputations for generously paying their employees. But as the tech space approaches a saturation point, are other employers becoming competitive? READ MORE
Employers budgeting big pay raises for 2023
In response to a tight labor market, employers are planning to up employee salaries in the biggest projected hike in 15 years, new data from Willis Towers Watson finds.
Although it’s a new recent high, it’s not by much: Companies, on average, are budgeting a 4.1% salary increase for 2023, just above this year’s average 4% increase. The 2022 and 2023 salary increases are the largest since the Great Recession of 2008, according to the consulting firm, which surveyed 1,430 employers for insights in April and May. READ MORE
Ernst and Young has major payroll ‘error’: Employees’ paychecks reversed
Ernst & Young employees who got their paychecks last week suddenly discovered that the funds were reversed from their bank accounts, as the accountant giant on Tuesday worked with its payroll vendor to fix the issue.
One of the “Big Four” accounting firms, with offices in Boston and Cambridge, blamed its payroll vendor ADP for the reversal of payroll funds from employees’ accounts. READ MORE
UK workers suffer their biggest pay drop in two decades as inflation bites
Workers in the United Kingdom are struggling with the biggest drop in pay in more than two decades, as surging food and energy prices take a giant bite out of wages.
Real pay — workers' wages that take inflation into account — slumped by 2.8% between March and May compared to the same time last year, according to data released Tuesday by the Office for National Statistics. READ MORE
Inflation erasing wage gains, forcing pay cuts for American workers
White-hot inflation is forcing American workers to effectively take a pay cut, federal data revealed on Wednesday.
Real average hourly earnings — a measure of wages after adjustments for inflation — dipped by 1% in June compared to May, according to a Bureau of Labor Statistics release. READ MORE
Eighteen Dollar Per Hour California Minimum Wage Initiative Fails
Backed by numerous labor organizations, the ballot initiative entitled the California Living Wage Act of 2022 proposed increasing the California minimum wage over the next three years. The initiative would require California employers with 26 or more employees to pay minimum wage rates of $16 by 2023, $17 in 2024, and $18 by 2025. READ MORE
