With the holidays in full swing and less than one week remaining in 2022, we wanted to pass along a few compensation income tax related stocking stuffer reminders in connection with the year-end for which companies and/or individuals may want to consult about with their advisors (and in particular to see if they should take any actions before 2023). For simplicity, this blog assumes that the calendar year is the income tax year for both service providers and service recipients. READ MORE
More companies linking executive pay to stakeholder measures
More than three quarters (78 percent) of large companies now include stakeholder-based metrics in their executive compensation plans, according to a global survey from Farient Advisors.
That figure is an increase from 73 percent in 2021 and 64 percent in 2020. Marked regional differences persist, however. Almost nine in 10 companies surveyed in continental Europe this year (88 percent) used stakeholder incentive measures, compared with 63 percent of those in the US and 62 percent of those in Canada. READ MORE
How Walmart CEO Doug McMillon went from unloading Walmart trucks as teen to earning $25.7 million in total compensation
Carl Douglas McMillon was born in 1966 in Memphis, Tennessee. When he was 16, his family moved to 'the birthplace of Walmart' — Bentonville, Arkansas. During the summer, McMillon worked at the Walmart distribution center unloading trucks. READ MORE
CFOs hold pay raises far below inflation despite war for talent
CFOs are spurring resignations by letting inflation far outpace wage gains. They can take steps to improve employee retention even as prices increase at the fastest rate in four decades. READ MORE
Key Compensation Considerations for Public Companies in a Market Downturn
As a result of recent market trends, US public companies and their compensation committees face challenging decisions as they seek to maximize shareholder value while retaining and competitively incentivizing key employees. This insight highlights some of the key considerations that US-based public companies and their compensation committees should consider in this environment. READ MORE
Average US Pay Increase Projected to Hit 4.6% in 2023
Employers in the U.S. plan to boost salaries an average of 4.6 percent in 2023, up from 4.2 percent this year, according to a new study.
Employers say inflationary pressures and the ongoing challenges of finding and keeping workers are the main reasons for the higher projected increases. Indeed, 3 in 4 of the 1,550 U.S. employers in the latest Salary Budget Planning Report by consultancy WTW say they continue to experience problems attracting and retaining workers. The survey was conducted from Oct. 3 to Nov. 4, 2022. READ MORE
Contemplating the Use of Job Levels for Sales Force Compensation
Organizations should consider using job levels to improve the sales force compensation program.
Job levels offer different target compensation amounts that recognize incumbents’ applied skill levels: entry; career; and expert. And while the incentive element rewards sales outcomes, job levels help recognize seller proficiency. READ MORE
The Tangled Web of Pay Disclosure Laws in the U.S.
Pay equity has been a significant focus for employees, employers and state and federal enforcement agencies for the past five to six years. Until recently, the attention was singularly focused on the sudden rise in class action pay discrimination claims at the state and federal level. READ MORE
2023 Pay Transparency Laws Coming to a State Near You
Pay transparency legislation took hold in New York in November and now similar legislation will take effect farther up the coast in Rhode Island and across the country in California and Washington at the start of 2023. READ MORE
A running list of states and localities that require employers to disclose pay or pay ranges
A new front has emerged in state and local governments’ attempts to address pay inequity. Once an addendum to broader laws restricting the ability of employers to ask about pay during the hiring process, pay disclosure requirements have now become full-fledged, targeted pieces of legislation in a growing number of jurisdictions. READ MORE
Worker says she told her ‘cheaper replacement’ her own salary the day she left
The TikToker, named Kayla (@corporatecanadian), posted a video about the situation on Tuesday. In it, she is seen smirking as an audio clip from “Gossip Girl” says, “It’s so mean. Don’t do it. It’s the meanest thing you could do.”
In the video’s text overlay, Kayla elaborates on what the “mean” thing is.
“Training the cheaper replacement they hired but letting her know your salary on the day you leave,” she writes. Kayla adds in the caption, “Knowledge is power.” READ MORE
SEC Pay Disclosure Rules Allow Companies to Highlight ESG Goals
The Securities and Exchange Commission in August adopted final pay versus performance rules that require disclosure of the relationship between executive compensation actually paid and financial performance of a company.
The final rules, required by the 2010 Dodd-Frank Act, apply to all reporting companies with a few exceptions. READ MORE
ISS and Glass Lewis Announce Policy Updates Ahead of the 2023 Proxy Season
Proxy advisory firms Institutional Shareholder Services (“ISS”) and Glass Lewis (“GL”) each published their annual policy updates for 2023, which updates made certain changes relating to executive compensation.[1] As a general matter, the changes are incremental to the existing policies and do not significantly change the rubric by which ISS and GL review compensation programs READ MORE
'Unjustifiable': Bowl game executive pay went up or stayed mostly the same amid pandemic
The college football season of 2020 might go down in history as the worst to ever hit the postseason bowl game business.
Nineteen of those 44 games got canceled amid the COVID-19 pandemic. Most of the rest saw their revenues plummet from the year before as attendance was restricted to 25% of capacity or less while public health restrictions choked the flow of tourism. Many nonprofit bowl game organizations even turned to the federal government for relief, taking in more than $3.7 million in combined Paycheck Protection Program (PPP) funds in 2020, government records show. READ MORE
Employers are reshaping performance management and pay programs
Employers in North America need to reshape their performance management efforts and pay-for-performance programs to give them a much-needed boost, according to a survey of over 800 global organizations by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company. The survey revealed similar conclusions worldwide. READ MORE
Toward Fairer Data-Driven Performance Management
Meritocracy matters. A company that rewards talent, effort, and achievement can be expected to outperform those where nepotism, systemic biases, toxic politics, and sheer incompetence are prevalent; it’s just a matter of time. The rise of people analytics, innovations in the field of HR technologies, as well as the inevitable integration of AI and machine learning algorithms into talent management practices, are all signals of the same underlying phenomenon: a relentless quest for a more rational, fair, and evidence-based approach to managing workers, and unlocking human potential at work. READ MORE
Looking for a Lucrative Side Hustle? These 10 Cities Can Kick Your Income Up a Notch
The rise of the side hustle has been years in the making, but it moved into a much higher gear during the COVID-19 pandemic due to a combination of high job losses and increased remote work. Many Americans who took on side gigs to help make ends meet during the pandemic have now turned those gigs into full-time income. READ MORE
More Americans in Living-Wage Jobs as Year-End Approaches
Just in time for the holiday season, American workers saw an increase in the number of living-wage jobs available for November, with functional unemployment dropping for all major demographics, according to the monthly True Rate of Unemployment (TRU) report by the Ludwig Institute for Shared Economic Prosperity (LISEP). READ MORE
Preparing for pay transparency regulations: Communicate salary ranges across your organization
As of January 1, 2023, pay transparency laws will be in effect in New York City, California and Washington, covering virtually 1/5 of the country’s workforce. The new pieces of legislation expand upon others like those in Colorado in requiring salary ranges to be published as part of every job posting and require pay reporting to help close pay gaps across marginalized communities. READ MORE
Here’s why salaries in the U.S. don’t keep up with inflation
Inflation in the United States hit a record high in June 2022. Consumer prices soared by 9.1% compared with a year prior — the largest annual increase since 1981. While wages are rising, they’re not keeping up with inflation. Wage growth has been consistent with an inflation rate of about 4.5%. Meanwhile, as of November, inflation was at 7.1%. READ MORE