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Federal Reserve Chair Jerome Powell spoke about his salary on Tuesday, sparking an array of different responses on social media.
While speaking at the Economic Club of Washington Powell was asked by billionaire David Rubenstein what the salary of the Federal Reserve chair is. READ MORE
Posting salary ranges on job listings is the smart move for employers looking to attract stronger candidates and build a relationship based on mutual trust from the get-go.
One in five Americans live in a state that requires pay transparency. For companies, colleges and public agencies in states that don’t require salary disclosure, it makes sense to stop listing “competitive salary” and start providing potential job candidates with meaningful financial information upfront. Why waste your time or theirs on one or two interviews that are likely to end with a rejected offer? READ MORE
Zoom, the tech company that shot into the spotlight during the Covid-19 pandemic as many companies went remote, announced plans on Tuesday to cut 1,300 employees from its workforce.
In a message shared Tuesday with Zoom employees, CEO Eric Yuan wrote the company needs to adapt to the “uncertainty of the global economy” and “its effect on our customers.” READ MORE
In preparation for the 2023 proxy season, proxy advisory firms Glass Lewis and Institutional Shareholder Services (ISS) announced updates to their voting guidelines for investors, effective on January 1, 2023, and February 1, 2023, respectively. Several updates to these guidelines relate to environmental, social, and governance (ESG) topics, including—as discussed below—updates related to climate-related accountability and climate disclosures as well as racial equity audits. The firms’ approaches to ESG, including their guidelines, recently drew criticism as 21 state attorneys general sent a letter to Glass Lewis and ISS accusing the firms of violating their fiduciary duty by prioritizing social goals over the financial interests of their clients. READ MORE
As concerns over a slowing economy drive continued layoffs, particularly in the tech industry, individual contributors aren’t the only ones feeling the impact. In the last few weeks, a number of large firms have announced pay cuts for their highest-paying executives, creating what experts say could be an opportunity for HR to boost employee morale, and ideally, drive retention. READ MORE
While news of big corporate layoffs and growing interest rates have left many workers nervous about their earning potential, it looks like the job market remains competitive — for some more than others.
Adzuna, a job search engine, examined 17.9 million U.S. jobs advertised on their site, comparing the salaries posted in November 2021 to those posted in December 2022. Certain roles are seeing substantial salary increases, hinting at the continued effort companies are making to recruit new talent. READ MORE
Would you rather be a front-desk clerk or "Director of First Impressions"? A barber or a "Grooming Manager"?
How you answer could mean a significant difference in annual earnings. That's because companies routinely inflate workers' titles to avoid paying them in full for overtime work, according to researchers from the University of Texas and Harvard Business School. READ MORE
With salary ranges being required in more areas, how can executives use these new laws to better their hiring practices? READ MORE
The majority (77% as of 2021) of S&P 500 companies are now tying executive compensation to some form of ESG performance. They’re most commonly tying executive compensation to human capital management goals — 64% of the S&P 500 do so — and least frequently (25%) to environmental performance goals. READ MORE
On January 27, 2023, the SEC’s new Executive Compensation Clawback Rules became effective. The rules require listed companies to: (1) develop and implement a policy to recover erroneously awarded incentive-based compensation received by current or former executive officers; and (2) satisfy related disclosure obligations. With new rules, come new risks. At a minimum, companies will have to closely examine the new rules and establish protocol to ensure adequate compliance and disclosure. READ MORE
As companies begin preparing for the 2023 proxy season, we note that Institutional Shareholder Services Inc. (ISS) and Glass Lewis, the leading providers of corporate governance solutions and proxy advisory services, issued updated benchmark policies (proxy voting guidelines), which can be found here and here, respectively. The updated proxy voting guidelines generally focus on board accountability and oversight considerations and address topics such as climate accountability, board diversity, shareholder rights, corporate governance standards, executive compensation and social issues. What follows is a summary of the proxy voting guidelines published by ISS and Glass Lewis for the 2023 proxy season. READ MORE
Some big-company CEOs are seeing big cuts to their compensation packages. The reductions come amid economic hardship across different industries, including Big Tech. Employees at some of the companies have seen their own pay cut — or jobs eliminated. READ MORE
Global businesses have reached a sustainability inflection point. Stakeholder expectations and heightened investor scrutiny are putting organizations under pressure to articulate their societal roles more clearly, prioritize environmental and social objectives within their business strategies, and demonstrate progress to stakeholders. We also know that employees are prioritizing their employment decisions based on an organization’s purpose, culture, ESG goals, and diversity, equity and inclusion (DEI) priorities. Yet for the most part, corporations have been neglecting a powerful lever for advancing their sustainability agendas: executive compensation. READ MORE
As the employment market continues to shift, a worker push for transparency is making headway. About a quarter of U.S. workers now live in states, counties, or cities where employers are legally required to share pay ranges. In some areas, including New York City and the states of Colorado, California, and Washington, employers must list the salary range in job postings. Other localities’ laws oblige companies to share salary ranges upon request, during the interview process, or when extending a job offer. READ MORE
Startup stock options mean something different in 2023.
Many unicorns are staying private for around eight to 10 years while enjoying household name status with public companies like Amazon and Microsoft. READ MORE
A major undercurrent of last year's entire economic policy debate has been this question: Is compensation for American workers spiraling upward because of a tight job market destined to fuel inflation? READ MORE
While CFOs typically budget more for compensation every year, ongoing inflationary pressures and a still-tight labor market puts compensation plans “front and center” in CFOs’ “ability to engage and retain top talent,” Bant said in an interview. READ MORE
Intel Corp., struggling with a rapid drop in revenue and earnings, is cutting management pay across the company to cope with a shaky economy and preserve cash for an ambitious turnaround plan.
Chief Executive Officer Pat Gelsinger is taking a 25% cut to his base salary, the chipmaker said Tuesday. His executive leadership team will see their pay packets decreased by 15%. Senior managers will take a 10% reduction, and the compensation for mid-level managers will be cut by 5%. READ MORE
Employee compensation growth has slightly cooled again, according to new data released today, suggesting wage growth may have peaked since its record jump in mid-2022.
Labor compensation costs in the U.S. for private sector workers—including pay and benefits—increased 5.1 percent year-over-year from a 4.4 percent increase a year earlier, the U.S. Bureau of Labor Statistics (BLS) reported Jan. 31 in its quarterly Employment Cost Index (ECI). That's slowed from the third quarter index, released in October, which found that wage growth grew 5.2 percent year-over-year, and from 5.5 percent year-over-year growth from the second quarter of 2022.
Overall, compensation costs for civilian workers climbed 1 percent in the third quarter. READ MORE
Recent pronouncements and enforcement activity by the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC) reflect a singular agency focus on the importance of clawing back incentive compensation after instances of executive misconduct, even if how these agencies compel companies to do so may have unintended consequences. READ MORE