On March 2, 2023 and March 3, 2023, in a pair of speeches by Deputy Attorney General (DAG) Lisa Monaco and Criminal Division Assistant Attorney General (AAG) Kenneth Polite, the U.S. Department of Justice (DOJ) announced revisions to its corporate enforcement policy. The changes tie corporate wrongdoing to executive compensation through a two-pronged approach: (1) mandating that companies that enter into agreements to resolve criminal allegations adopt prospective compliance-related criteria in their compensation and bonus structures and (2) offering fine reductions to companies that attempt to claw back compensation from individual wrongdoers. READ MORE
Tech titan to reportedly press pause on some bonuses
Certain corporate Apple employees will reportedly have their upcoming bonuses postponed until later in the year.
Citing unnamed sources, Bloomberg reported Tuesday tech giant Apple will do so for workers in corporate divisions that usually get bonuses on a biannual basis. Those affected will go from having their bonuses split between the two months of April and October to receiving the payment in-full in the fall, according to the outlet. READ MORE
SEC’s Final Clawback Rules: What to Know
The U.S. Securities and Exchange Commission’s (SEC) long intermission on clawbacks is over.
Act two began with the SEC’s adoption of the final clawback rules in October. Nasdaq and the New York Stock Exchange (NYSE) subsequently published their proposed listing standards for clawbacks on Feb. 22; both of which generally track SEC final regulations. READ MORE
Women still don't get the top jobs or pay even in industries they dominate
Women account for the majority of workers in a third of major U.S. industries. Yet, they are underrepresented among managers and executives in all but one of those, according to a data analysis by the Government Accountability Office for the House Oversight Committee. READ MORE
Today is Equal Pay Day. Here’s what that means
The gender pay gap is typically referred to in monetary terms, measuring how much women earn for every dollar a man earns.
But that gap is also indirectly a marker of time, since women on average earn less and therefore have to work longer just to break even with men. READ MORE
This Texas gas station went viral over job postings offering up to $225K a year (plus benefits and vacation).
A Texas gas station and convenience store chain, Buc-ee’s, received tons of attention earlier this year after a post stating employees could earn an annual salary of up to $225,000 there. The company also boasted a 401(k) match of up to 6%, along with three weeks paid vacation, health care and an additional $2 per hour for overnight services. READ MORE
SVB employees to receive 45 days of employment at 1.5 times pay
The US Federal Deposit Insurance Corporation offered Silicon Valley Bank employees 45 days of employment and 1.5 times their salary, reports say.
An FDIC official did not comment on the details to CNN, but said it is standard practice and one of the first steps the independent government agency takes after being named receiver. READ MORE
Silicon Valley Bank gave company-wide bonuses hours before it collapsed
Silicon Valley Bank employees received their annual bonuses on Friday just hours before the government took control of the company, according to reports.
SVB traditionally processes annual bonuses on the second Friday of March, unnamed sources associated with the bank told CNBC. The bonuses were reportedly for work completed in 2022. READ MORE
4 critical benefits and compensation issues facing employers this year
Already, 2023 is shaping up to be a significant year in the employee benefits and executive compensation space, as organizations grapple with a host of new regulatory requirements, mounting cyber risks and fallout from the reversal of Roe v. Wade. Just last week, pharmacy chain Walgreens announced it would stop selling abortion pills in 20 states after being threatened with legal action by Republican officials; the state of California has since announced plans to cut ties with the company. READ MORE
3 keys to implementing pay transparency in job postings
In January, the state of California joined the growing list of states requiring employers to disclose pay scales in job openings. Yet, despite the mounting pressure—new laws, candidate preferences and increasing availability of information—for organizations to disclose this information, many HR leaders are still reluctant. READ MORE
The Fed wants to limit wage growth. That’s particularly bad for women
The US labor market is remarkably strong — unemployment is sitting at five-decade lows even as the Federal Reserve does all it can to cool the economy in its fight against inflation. Wage growth is also increasing as demand for labor outpaces supply.
But not all workers have benefited equally from wage gains. READ MORE
DOJ Unveils USAO National Voluntary Self-Disclosure Policy, Announces Pilot Program on Executive Compensation
On February 22, 2023, the U.S. Department of Justice (DOJ) announced and implemented a new Voluntary Self-Disclosure Policy specific to the 93 United States Attorney’s Offices (USAOs) throughout the nation. Before implementing this policy, each USAO was responsible for establishing its own rules for self-disclosure, including what benefits, if any, could be conferred upon self-disclosing companies. Now, all 93 USAOs will have a uniform policy providing companies with clear guidelines regardless of jurisdiction. The issuance of this Policy is part of an ongoing effort by the DOJ to make corporate criminal prosecutions more uniform across the United States. READ MORE
Stock Ownership Versus Deferred Compensation
One of the topics an agency owner will often have to discuss with a new or existing producer will be “ownership.” When we ask a producer what they mean by ownership, stock ownership is often what comes to their mind. What they are usually looking for is security and that they are building something for their efforts and retirement. READ MORE
DOJ Announces Compensation Clawback Pilot Program, Changes to Corporate Compliance Program Evaluation Criteria
On March 2, Deputy Attorney General Lisa Monaco announced the launch of a significant pilot program on compensation incentives and clawbacks during a speech at the ABA White Collar Crime Conference in Miami. Under the “first-ever” three-year pilot program, companies will be able to reduce criminal fines by attempting in good faith to claw back compensation from individual wrongdoers—even if those efforts are unsuccessful—and the companies will be able to retain any recovered funds. READ MORE
American Workers’ Fortunes Have Taken a Remarkable Turn
Last month, Target announced that it would pay new employees as much as $24 an hour and extend health benefits to anyone working at least 25 hours a week. The company is hardly the only one coughing up cash to lure in new workers or retain those on staff. Starbucks recently set a national minimum wage of $15. McDonald’s, Dairy Queen, and Subway franchises have been offering signing incentives. Lowe’s is giving bonuses to hourly workers this month. READ MORE
New Supreme Court Ruling on Salary Basis for Exempt Executive Employees
The United States Supreme Court just issued a new ruling on the salary basis test for exempt executive employees. Before we get to that, here is a quick background on the salary basis and executive employee tests, which are important to understand as we look at this new case.
The Fair Labor Standards Act provide an exception to the minimum wage and overtime requirements for “any employee employed in a bona fide executive, administrative, or professional capacity.” READ MORE
Pay plan rejections hit record high
Shareholders are typically more likely to give compensation packages a thumbs down when pay plans include significant year-over-year increases in the 20%-50% range as well as when a company’s performance wanes, Newbury said.
More compensation information is on its way for investors to pore over. For the first time this year, large public companies will be required to disclose additional information about executive compensation under the long-delayed pay-versus-performance rules that were adopted last year by the SEC. READ MORE
DOJ Announces Compensation Clawback Pilot Program, Changes to Corporate Compliance Program Evaluation Criteria
The US Department of Justice recently announced a compensation clawback pilot program as well as changes to the corporate compliance program evaluation criteria in the latest of a flurry of policy updates. READ MORE
DOJ Announces Significant Guidance on Compliance, Compensation, Communications and Cooperation
On March 3, 2023, as part of the rollout of several updates to its guidance on corporate compliance programs, the Department of Justice (DOJ) released a new policy aimed at incentivizing compliance-driven compensation and bonus plans as part of its enduring priority of combating corporate crime. The DOJ described the policy as part of its continued efforts to prevent misconduct before it happens, hold individual wrongdoers accountable, and deter and punish recidivism. As part of the new policy, the DOJ has launched the first-ever Pilot Program Regarding Compensation Incentives and Clawbacks. The three-year Pilot Program consists of two parts. First, the DOJ Criminal Division will require that every corporate resolution include a requirement that the company develop compliance-promoting criteria within its compensation and bonus systems. Second, the Pilot Program will provide for fine reductions to companies that seek to claw back corporate compensation from wrongdoers. READ MORE
New York Stock Exchange and Nasdaq Issue Executive Compensation ‘Clawback’ Proposals
The New York Stock Exchange and the Nasdaq Stock Market have issued stock listing rule proposals four months after the SEC published Dodd-Frank clawback rules directing national stock exchanges to require listed public companies to implement policies intended to recoup bonuses paid to executives if the company is found to have misstated its financial results.
The proposals by the two exchanges are very similar but not identical. Perhaps the biggest difference is the explanation about the type of compensation that should be recovered. READ MORE