Compensating for compensation: Keeping talent when dollars don’t work

Competitive compensation has always been essential to attracting and retaining talent. And today, it’s become an increasingly significant piece of the puzzle. Recent US job growth numbers amplify the hyper-competitive hiring conditions in many sectors. Inflation places pressure on family budgets. And pay transparency allows people to not just imagine that the grass would be greener elsewhere, but to calculate exactly how much more “green” they might expect to tuck away in their wallets if they made a move. READ MORE

Why Pay Equity Needs To Be Addressed Now

Pay equity is a hot topic for people leaders. New pay transparency laws are only going to make it hotter. Organizations are under increased pressure to address pay disparities and ensure that all employees get fair treatment. Why the urgency? As compensation information is made public for new roles, current employees will have access to this information and become aware of disparities. So to retain your best talent, prioritize your compensation adjustments accordingly. READ MORE

Pay transparency is good for workers — and employers see more of the top job applicants

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

Proxy Advisory Firm Policy Updates for the 2023 Proxy Season

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

Are executive pay cuts the ‘bold move’ your organization needs?

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

10 jobs with the biggest salary increases in 2023

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

Companies save billions of dollars by giving employees fake "manager" titles, study shows

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

The SEC Incentive-Based Compensation Clawback Rule is now effective

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

Proxy Advisory Firms Issue 2023 Voting Guidelines

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

Linking Executive Pay to Sustainability Goals

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

Will Salary Transparency Laws Change Employee Compensation?

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

Intel Slashes CEO Pay by 25% as Part of Companywide Cuts

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