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As the workforce and lawmakers push for advancements in employee rights, employee-friendly regulations are popping up across the US.
Several states and localities have enacted pay transparency laws, typically requiring employers to disclose pay ranges and benefits information in job postings. By making pay and benefits public information, these laws are paving the way for pay equity. READ MORE
If Gov. Kathy Hochul has her way, New York State’s minimum wage will rise to more than $16.39 between now and 2026 and remain indexed to the rate of inflation or 3%, whichever is less.
If progressive groups and their allies in the legislature have their way, the state’s minimum wage will rise to $21.25 by that year and then be indexed annually to increases in prices and labor productivity. READ MORE
Your salary might look great on paper until you get your paycheck after taxes are taken out, and then it might look a whole lot different. Since income tax rates vary from state to state, the amount you lose will fluctuate depending on where you live. In Florida, for example, only 17.12% of your paycheck would go towards taxes. In Hawaii, on the other hand, taxes take a whopping 28.06% of your total paycheck. READ MORE
The job market is constantly evolving, and one trend that’s on the rise is salary transparency.
According to a recent survey by LinkedIn, 91% of US-based respondents said that seeing a salary range in a job post would impact their decision to apply. READ MORE
In the aftermath of Southwest Airlines' December meltdown, company executives acknowledged that their compensation packages were due to be cut as part of the carrier's response.
Answering questions from reporters after hours of testimony before the Senate Commerce, Science and Transportation Committee on Thursday, Southwest chief operating officer Andrew Watterson said executive bonuses were set to be reduced this year. READ MORE
From 2020 through 2021, tying executive pay to meeting diversity goals grew significantly in popularity, with companies including McDonald’s, Nike, and Starbucks tying some form of executive compensation to boosting gender and racial diversity in their workforces or in leadership positions. READ MORE
The SEC adopted three new rules in 2022 that significantly expand compensation committees’ agenda for this year. The rules cover pay versus performance, clawbacks and insider trading.
Two of these rules – those on pay versus performance and clawbacks – were mandated by the Dodd-Frank Act. They do not represent new concepts as they were initially proposed by the SEC in 2015. In addition, the changes to the insider-trading rules codify some of the existing best practices related to Rule 10b5-1 plans and introduce new executive compensation disclosures related to insider trading. READ MORE
The money paid to top corporate executives will get more sunlight this spring as public companies comply with new SEC pay-versus-performance rules for the first time.
Behind the scenes, however, accountants helping companies prepare their proxy statements are tackling some complex questions, including how to pinpoint the value of stock awards. READ MORE
With 2023 well underway, many employers are still trying to find the right levels of pay for their employees. The stakes are high: If employers don't get compensation right, they may find themselves losing out on talent.
The quest to attract and retain talent over the past year has already caused employers to push pay levels higher than initial projections. Data from consulting firm WTW shows that 70 percent of U.S. employers spent more than they expected to adjust employees' pay levels last year. Now, there are signs that this trend may continue in 2023. READ MORE
While it may not come as much of a surprise—considering the national unemployment rate of 3.4% is at its lowest since 1969—employers looking to keep much-needed talent in the fold are turning to merit raise increases as a primary retention strategy, according to a recent survey. However, employers have their work cut out for them when it comes to designing and communicating about changing pay practices. READ MORE
In late 2020, Keri B., a recruiter, was working with a professional-services company that was desperate to hire.
It was so eager, in fact, that the candidate she placed managed to negotiate a starting salary that she said was $20,000 more than their new boss was making. "That was the first time that I was like, 'Wow, this is crazy,'" Keri, whose last name and place of employment are known to Insider, said. "I'm seeing people who are new grads just out of school getting really, really high salaries." READ MORE
As workers around the country frantically negotiate severance packages amid tens of thousands of layoffs, employees in a tiny, influential and often secretive corner of Wall Street are being promised some of their biggest paydays ever. READ MORE
Dominion Energy Inc. will now tie the vast majority of Chief Executive Officer Bob Blue’s compensation to how the company performs, with the change coming as the utility undergoes a “top-to-bottom” business review amid a year-long share slide. READ MORE
On February 10, 2023, the SEC Staff issued fifteen Compliance & Disclosure Interpretations regarding its PvP disclosure rule. These C&DIs, which comprise the Division of Corporation Finance’s interpretations of Item 402(v) of Regulation S-K, answer a number of questions, in a generally reasonable manner, although some questions remain unanswered. READ MORE
Choppy market valuations, more engaged shareholders, and new regulations will create new challenges for corporate governance in the upcoming proxy season. Companies and boards should anticipate pressure from stakeholders regarding director elections and say on pay, high numbers of shareholder proposals on environmental and social matters, and added disclosure in proxy statements.
Broadridge’s analysis shows that in 2022 the most directors over the past five years failed to attain majority support, there was a decline in shareholder support for say on pay, and there were more shareholder proposals than at any time over the preceding five years. Directors and management should expect the following factors to weigh on the upcoming 2023 proxy season: READ MORE
The fourth quarter’s 3% year‐to‐year increase in hourly wages and benefits was lower than the 3.7% average increase since 1987, and even lower than the 3.1% norm during the horrific 2008 recession. That casts considerable doubt on the notion that inviting another inverted yield curve recession is a constructive way to bring inflation down. Patience is working fine. READ MORE
On October 26, 2022, the Securities and Exchange Commission (SEC) adopted final rules that will require public companies to implement policies to recover, or claw back, erroneously awarded incentive-based compensation from current and former executive officers in the event of an accounting restatement, regardless of whether the executive officer was in any way responsible for the causes of the restatement. The SEC originally proposed clawback rules pursuant to the requirements of Section 10D of the Securities Exchange Act of 1934 (added by Section 954 of the Dodd-Frank Act) in July 2015. These rules remained dormant until October 14, 2021, when the SEC reopened the comment period on its proposed rules twice (on October 14, 2021 and June 8, 2022), leading to the adoption of final Exchange Act Rule 10D-1 (Rule 10D-1) at the end of October 2022 with certain changes in response to the collective comments received. READ MORE
Openly discussing individual salaries is slowly becoming less taboo as younger generations enter the workforce, but it does not mean an employer has to go “all in” to embrace pay transparency in pay administration.
Transparency in compensation practices can positively impact workplace culture. Pay is a sensitive and personal subject for many, so when staff are comfortable and feel trusting in this area, it can translate to overall trust in the organization. READ MORE
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
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