SEC Adopts Mandatory Rules for Clawing Back Incentive-Based Compensation: Questions and Answers for Public Companies and Best Practices

On October 26, the Securities and Exchange Commission (SEC) adopted long-delayed rules which will require companies to implement mandatory "clawback" policies with respect to incentive-based compensation if the company's financial statements tied to achieving the relevant incentive payments are later required to be restated. READ MORE

Musk testifies in lawsuit over Tesla compensation package

Tesla CEO Elon Musk took the witness stand Wednesday to defend himself in a shareholder lawsuit challenging a compensation package he was awarded by the company’s board of directors that is potentially worth more than $55 billion.

Musk denied that he dictated terms of the compensation package or attended any meetings at which the plan was discussed by the board, its compensation committee, or a working group that helped develop it. READ MORE

Americans look for side hustles to fight inflation

Do you feel like you need to take on a second job to keep up with rising prices? If so, you’re not alone. The cost of living rose 8.2% in September, while wages rose just 5.1%. And there are still jobs to be had.

The labor market remains healthy, for now at least. The economy added 261,000 new jobs in October. The Federal Reserve, meanwhile, worries strong jobs figures will keep inflation at a 40-year high. READ MORE

U.S. workers have wasted millions of hours applying to jobs with the wrong salary—how to avoid it

New York City is the latest city to require employers to list salary ranges on their job postings, joining states like Colorado and California, and cities like Cincinnati and Toledo, Ohio that have passed or enacted similar laws. However, the majority of states still haven’t risen to the occasion, and as the call for pay transparency continues, job seekers have started taking matters into their own hands by rejecting offers. READ MORE

This job pays $60,000 – or maybe $150,000: companies skirt New York salary law

Do you want to know how much money your future co-workers will make? Take a look at new job postings in New York City. One Deloitte ad promises compensation between $86,800 and $161,200 a year. A technical writer at Amazon can expect to make somewhere in the range of $125,800 to $211,300. And a head of news audio at the Wall Street Journal will earn somewhere in the range of $140,000 to $450,000. That’s a difference of $310,000. READ MORE

Pay transparency reduces wage disparities — at a cost

A coldly rational person probably wouldn’t care what her coworker is paid — at least not to determine satisfaction with her own compensation.

That hypothetical rational person would only need to answer a simple question for herself: Between wages and other benefits, does this job give me more total value than any other readily available one for my skills? What a coworker is paid wouldn’t change her answer because that coworker would have a different calculus. READ MORE

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