Today, Payscale Inc., the leading provider of compensation data, software and services, released the results of its flagship survey, the 2023 Compensation Best Practices Report (CBPR), shedding light on the ongoing power struggle between employees and employers. The largest report of its kind on compensation trends and total rewards, this year’s CBPR examines how employers can elevate their compensation management strategy to rebalance the employee experience in a precarious economy and the age of pay transparency. READ MORE
Most workers are getting raises this year, survey finds
Looks like a lot of folks may be getting raises this year, according to a Payscale survey out Wednesday morning.
Why it matters: Who doesn't love a salary increase? These numbers look big, but more employers are unsure about their plans in 2023 than last year. And with inflation running at around 6% in the U.S. year over year, some workers are barely keeping pace. READ MORE
Musk's $55B pay package continues to be scrutinized in court
Elon Musk's massive pay package from 2018 is still under scrutiny in a Delaware court.
Attorneys for a Tesla shareholder urged the judge on Tuesday to invalidate a 2018 compensation package awarded by the company’s board of directors that is potentially worth more than $55 billion. READ MORE
The SEC Continues its Efforts to Improve Option Grant Practices
The SEC’s recent Rule 10b5-1 rulemaking has drawn attention to its efforts to crack down on illegal trading by corporate insiders. (See our related post here.) But less attention has been paid to part of the rulemaking that will likely impact every public company’s option grant practices. READ MORE
What are “Double-Vest” RSUs and Why Are They Making Headlines?
Double-vest restricted stock unit awards (Double-Vest RSUs)1 made headlines a few years after the end of the Great Recession when they were awarded by pre-IPO tech giants. Since that time, it has become increasingly common for mature startup companies and other high-value pre-IPO companies, primarily in the technology industry in the United States, to award Double-Vest RSUs in lieu of, or in addition to, stock option awards to attract and retain talent.2
Fast-forward more than a decade and Double-Vest RSUs are again making headlines, but this time because the expiration date of older Double-Vest RSU awards is approaching at the same time that many companies may be confronted with less access to capital markets, coupled with pent-up desire for liquidity by employees. READ MORE
Low wages linked with elevated mortality risk for middle-age workers in the US, study finds
Middle-age workers who tend to earn a low wage have an elevated mortality risk, especially when they experience unstable employment, according to a study published Tuesday in the medical journal JAMA.
Researchers from Columbia University’s Mailman School of Public Health tracked employment and health metrics for about 4,000 workers in the US across a 12-year period, using data from the University of Michigan’s Health and Retirement Study collected between 1992 and 2018. All participants were at least 50 years old at the beginning of the study period and in their 60s at the end. READ MORE
Design Thoughtful Scorecards for ESG Measures in Incentive Plans
Organizations are facing increasing pressure to consider whether environmental, social and governance (ESG) and human capital management (HCM) have a place in their compensation programs.
Semler Brossy’s “2022 ESG + Incentives ReportOpen in a new tab” found that 70% of the S&P 500 companies already have ESG and HCM metrics in their incentive program, a 23% increase from last year. Despite the rising external pressure, companies need to first identify top ESG and HCM priorities that are material to the overall strategy and establish a set of performance goals for these priorities. READ MORE
How in-house counsel can navigate pay disclosure laws
On November 1, 2022, one of the most wide-ranging laws related to salary transparency went into effect in New York City. Businesses hiring workers in the city are now required to list the minimum and maximum salary range for a job on any printed or online posting.
The goal of the new law is to provide workers with more information regarding an employer’s pay practices so they have greater leverage to discuss and negotiate their salaries. READ MORE
Delaware Court Extends Fiduciary Duty of Oversight to Corporate Officers
For companies incorporated in Delaware (and beyond), it may be time to reexamine a number of issues impacting senior leadership from a variety of perspectives, including corporate governance, indemnification provisions, executive employment agreements, anti-harassment and discrimination policies, and more. READ MORE
Tech CEO salary cuts aren’t always the sacrifice they seem
After announcing a 17% reduction of its workforce, Twilio said Chief Executive Officer Jeff Lawson’s base salary would be trimmed by about half to $65,535. The week before, Eric Yuan, the billionaire founder of Zoom, said he would reduce his salary and forgo a bonus after cutting 1,300 jobs at the video conferencing software provider. READ MORE
With Proposed Non-Compete Ban, The FTC Joins The Executive Compensation Regulatory Landscape
Employers are accustomed to following rules related to executive compensation from the DOL, IRS, and SEC. It may be time to add a new acronym to the list – the Federal Trade Commission (“FTC”).
On January 5, 2023, the FTC proposed a new federal antitrust regulation that would ban almost all non-compete agreements for employees. Citing authority under Section 5 of the FTC Act, the rule asserts that employee non-compete clauses amount to an “unfair method of competition.” If enacted in its current form, the rule would broadly prohibit employers from entering into non-competes with workers across all industries and income levels – including those in the C suite. READ MORE
Tech Salary Report: Six-Figure Compensation Is Here to Stay
The average salary for a technology professional in the United States increased to $111,348 in 2022, up from $108,857 in 2021. When it comes to highest average salary on the state level, Massachusetts is at the top of the list for highest average tech salary. Oregon took second place, and California came in third. READ MORE
Home Depot to spend $1 billion more on hourly workers
Home Depot said it will increase pay and benefits for front line hourly staff by $1 billion this year, another sign of a tighter labor market and rising wages across the US economy.
The home improvement retail chain did not detail how much of a pay raise the average hourly worker will receive. READ MORE
Amazon stock drop has workers facing pay squeeze
Amazon’s corporate employees will make less money in 2023, people close to the matter told the Wall Street Journal on Monday.
Shares of the world's largest online retailer dropped roughly 36% over the last year, shaking up Amazon’s stock-heavy compensation plan while pulling employee pay much lower than target compensation levels. READ MORE
Elon Musk is currently working for Tesla for free. That could change
For the moment at least, Elon Musk is working at Tesla for free. Depending on how you look at it.
Musk still has the potential to continue pulling in staggering sums of money, thanks to Tesla, but not in the way that his regular workers make their money. That’s because the CEO hasn’t taken any kind of cash salary since 2019, when he only received $23,760, which was required under California minimum wage law. READ MORE
Minnesota bill would mandate paid sick leave from almost all employers
Nearly all Minnesota workers would be entitled to paid sick leave under a plan moving through the Legislature that's aimed at the roughly one-third whose employers don't already give them time off when they're ill. READ MORE
Pay Attention to State Pay Transparency Laws When Posting Jobs
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
Could New York See a $21.25 Minimum Wage?
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
How Much You Take Home from the Average Salary in Each State
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
91% Of Applicants Want Salary Range In Job Posting
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