Pay transparency and salary ranges won’t solve for equity alone

The post-pandemic workplace has brought inequities between men and women into sharp view. From the burdens of unpaid labor, which women are shouldered with more often than men, to their stop-start return to work as childcare options run dry, and the ongoing struggle to navigate rigid expectations of female leaders, there’s plenty to tackle when it comes to women’s equality at work. READ MORE

Assessing the Executive Pay Landscape Ahead of 2023

As 2022 nears its close, companies across Corporate America are preparing for 2023 and what’s developing to be one of the most anticipated proxy seasons in recent years. In August 2022, the United States Securities and Exchange Commission (SEC) officially adopted its “Pay Versus Performance” rules, following several rounds of comments and proposals. The new rules require public companies to disclose information reflecting the relationship between compensation actually paid to a company’s named executive officers (NEOs) and the company’s financial performance. READ MORE

More Companies are Linking Executive Pay to ESG Performance, But Few See It as Critical to Sustainability Goals

Large US companies are increasingly linking executive compensation to some form of ESG performance, with the share growing from 66 percent in 2020 to 73 percent in 2021. At the same time, just a minority of polled corporate executives say including ESG (environmental, social, and governance) performance goals in executive pay is very important in achieving their ESG goals. Most view such measures as being of medium importance, which indicates that incorporating ESG measures into compensation is just part of companies' broader efforts to achieve their objectives. READ MORE

After Decades Of The Antiquated Job Advertisement, It’s Time For An Overhaul

The job description, the first important step in the hiring process, is an antiquated document that needs to be updated. The massive amount of bullet points in the advertisement demand what you need to bring to the table. There is virtually nothing about the financial situation of the company, your future boss or information that a job hunter would like to know before investing their time and energy. It is one-sided. READ MORE

Employees are demanding pay transparency. Here’s how HR should respond

While pay transparency laws are not yet widespread nationwide (a small handful of states and locales including New York City, so far, have laws related to pay transparency either on the books or soon to go into effect), some experts believe the issue will become a stronger force in the months and years ahead—especially if evolving employee expectations are taken into account. And HR needs to start getting ready now. READ MORE

The Current Landscape in Executive Compensation as Reflected in the 2022 Proxy Season

Pay Governance LLC provides counsel and advice to the Board of Directors’ Compensation Committees of more than 400 prominent publicly-traded companies. We frequently are requested to attend meetings of the Compensation Committee to provide our insights and advice regarding trends and developments as well as to render technical advice and services in executive compensation. Our ongoing client work and internal research as well as the Compensation Committee meetings we have attended during the 2022 proxy season give us a comprehensive view of the prevailing issues for Compensation Committees and how these issues are shaping the design and implementation of viable and effective compensation strategies. READ MORE

Supreme Court Considers Whether “Highly Compensated” Employees Paid on a “Day Rate” Basis Are Overtime-Exempt Under FLSA

On October 12, 2022, the Supreme Court held oral argument to address the decision of the U.S. Court of Appeals for the Fifth Circuit in Hewitt v. Helix Energy Sols. Group, Inc., 15 F.4th 289 (5th Cir. 2021), cert. granted, No. 21-984 (U.S. May 2, 2022), and a corresponding split among the circuit courts of appeal regarding the application of Fair Labor Standards Act (FLSA) regulations for the “highly compensated employee” (HCE) exemption from overtime. READ MORE

What Is A Compa Ratio & How Is It Used?

Are the salaries of your employees competitive? Are they paid fairly? The answer to these questions lies in compensation ratios, or compa-ratios. This metric evaluates the competitiveness of an employee’s compensation based on the midpoint of a predetermined salary range. In this article, we’ll discuss how compa-ratios can be used as a guide for your payroll and compensation decisions. READ MORE

IRS pushes 2023 FSA cap over $3K in ‘relatively large increase’

Employees may contribute up to $3,050 to flexible spending accounts in 2023, the IRS announced Tuesday.

The update represents a “relatively large increase” — a $200 jump — over this year’s $2,850, according to Lisa Myers, director of client services, benefits accounts, at advisory firm WTW. The shift is due to high inflation levels, Myers said in a statement provided to HR Dive; the previous adjustment increased the cap by $100. READ MORE

CFOs, Are You Prepared To Respond Effectively To Compensation Conversations?

It’s the season for annual planning and budgeting, and many chief financial officers (CFOs) are being urged to increase employee compensation in the year ahead for both new hires and existing staff. In many cases, CFOs have already been asked to bolster their companies’ salary budgets for the remainder of the year. A survey by The Conference Board found that U.S. employers have adjusted their total salary increase budgets for 2022 upward, from 3.6% to 4.1%. READ MORE