Your Custom Text Here
As the midway point of proxy voting season in the U.S. nears, investors’ views on compensation, as measured by say-on-pay vote outcomes, provide some mixed messages compared to historical outcomes. In 2022, WTW observed a record number of failed say-on-pay votes among Russell 3000 companies.
Results in 2023 suggest we’ll likely see far fewer failures, as opposition rates appear to be decreasing. READ MORE
Employers are getting sick of rising healthcare costs, but recent actions by Congress and the states may leave them feeling even more ill.
That’s the prognosis dished out by Ilyse Schuman, senior vice president of health policy for the American Benefits Council. READ MORE
Financial professionals during the 12 months through January netted the biggest increases in base salaries in a decade, gaining a 5% pay hike on average compared with 4.4% during the prior year, according to the Association for Financial Professionals.
Average base salaries for CFOs rose to $256,038 in January from $245,797 in January 2022 for a 4.2% increase, the AFP said, describing a survey in February of 1,408 finance professionals. READ MORE
A compensation survey is a valuable tool to benchmark your organization's pay practices against the market and align them with your business strategy. However, conducting a survey is only the first step. You also need to communicate and implement the findings effectively to ensure that your employees understand and appreciate your compensation philosophy and policies. In this article, we will discuss the key steps and challenges in communicating and implementing your compensation survey findings, and offer some tips to overcome them. READ MORE
Stockholders have expressed serious displeasure with 2022 executive compensation at Warner Bros. Discovery led by CEO David Zaslav, according to the result of a vote at the annual meeting Monday that was filed with the SEC today.
The so called say-on-pay vote saw nearly half of all votes cast coming out against last year’s comp, which was ratified with just over 50% approval. The votes are advisory only, meaning they’re non-binding, but they do have a impact. Most public companies get over 90% approval and anything under 70% is considered pretty dismal. READ MORE
Digital transformation is at the forefront of every modern business strategy, whether it’s adopting the cloud, improving and updating IT infrastructure, or developing data and analytics strategy to drive decision-making. Companies are interested in hiring seasoned pros who have a strong working knowledge of the skills they need to accomplish technology and business goals. READ MORE
Many millennials and Gen Zers dream of the day they can wake up and say, "I made it." Some say a higher salary is the key to reaching this goal.
Gen Zers, the oldest of whom are 26, are just entering the workforce, while many millennials, who are 27 to 42, are well into their careers. A SmartAsset analysis of Bureau of Labor Statistics data from the third quarter of last year found that the median salary of a 25- to 34-year-old in the US was $52,156, while the median salary of a 35- to 44-year-old was $62,244. READ MORE
Whether one’s paycheck can keep pace with inflation is always a concern. But for women, the question is also can their pay keep pace with their male peers?
On Wednesday, the White House Office of Personnel Management proposed regulations to prohibit managers at federal agencies from considering a new hire’s salary history when setting their pay for a position. READ MORE
Microsoft will hold off on offering salary increases to full-time employees, CEO Satya Nadella told staffers by email Wednesday.
The move aligns with Microsoft’s efforts to reduce costs as revenue growth slows and clients reel in spending. In January, the software maker said it would cut 10,000 jobs, or just under 5% of its workforce. Alphabet, Amazon, Meta and other tech companies have downsized as well in recent months. READ MORE
The compensation of high-ranking corporate executives is being increasingly tied to environmental targets, but a lack of standardized data and disclosure is making the effectiveness of such goals difficult to track and may even be opening the way for some to game the system, governance experts warn.
Two-thirds of companies in the S&P/TSX 60 index use one or more environmental, social and governance (ESG) metrics in compensation plans for CEOs or other executive officers, according to a January 2023 study by law firm Fasken Martineau DuMoulin LLP. READ MORE
Across the global business landscape, companies are devoting enormous attention to environmental, social and governance (“ESG”) issues. Driven by concerns around employee well-being, social unrest, climate change and geopolitical turmoil, they face intense pressure to improve their ESG efforts from shareholders, social activists, consumers, regulatory bodies, employees and the media.
Within this context, the idea of putting one’s money where their mouth is has been gaining traction among companies when it comes to achieving ESG goals. Increasingly, companies are integrating non-financial ESG factors into executive compensation programs as a way to drive accountability toward goals and respond to the concerns of investors and others. READ MORE
Eleanor Holmes Norton (D-DC) introduced the “Salary Transparency Act,” HR 1599, a significant piece of pay transparency legislation, which would require all employers nationwide to disclose pay ranges in job listings, provide wage ranges to job applicants, and provide that same information to existing employees. The legislation is intended to close the gender pay gap and applies to all organizations, regardless of size and number of employees.
HR 1599 has been referred to the House Committee on Education and the Workforce. READ MORE
Corporate pay strategies have shifted due to remote work and inflation in recent years, leading to pay inequities and compensation inconsistencies at many companies, according to a May 4 report from The Josh Bersin Co.
Standard pay bands and performance-based pay models have fallen behind. Instead, corporate compensation should consider fairness, transparency, inflation and a systemic approach, the analysis recommended. READ MORE
U.S. employers shelled out total compensation increases that averaged 4.1% and merit increases that averaged 3.8% in 2023 to remain competitive in a strong labor market.
This is according to Mercer’s “March 2023 U.S. Compensation Planning SurveyOpen in a new tab,” which noted that while the 2023 compensation increases are the largest employers have provided since the 2008 financial crisis, the increases fell slightly short of what employers were projecting during November 2022. READ MORE
When it comes to balancing education and experience in making compensation decisions, times are changing.
For instance, a 2022 surveyOpen in a new tab of 1,500 Gen Z youth and 600 employers by American Student Assistance (ASA) and Jobs for the Future (JFF) revealed 81% of employers believe they should focus on skills rather than degrees when hiring. READ MORE
The Securities and Exchange Commission has adopted a final rule that eventually will shorten the standard settlement cycle for most broker-dealer securities transactions to one business day after the trade date (T+1) from two business days (T+2) . This rule could affect tax withholding and deposit rules for certain equity awards.
Under the IRS’ latest informal guidance, from Generic Legal Advice Memorandum 2020-004 in May 2020, withholding obligations for both federal income taxes and payroll taxes under the Federal Insurance Contribution Act for certain stock-settled equity awards arise on the day when the award either is exercised (in the case of stock options or stock-settled stock appreciation rights) or when the employer initiates payment of the award (in the case of restricted stock units). READ MORE
Options can be a valuable equity-based incentive and form of compensation for a privately-held company. However, when a private company receives a lower 409A valuation - due to financial performance or market volatility - its outstanding stock options may become "underwater." Options are considered underwater when the fair market value of a company's stock price drops below the exercise (“strike”) price of the outstanding option. Underwater options can be problematic to a company and its shareholders READ MORE
The first time a founder goes to set up an Equity Plan, also known as an ESOP, or employee share scheme, they’re faced with many challenges.
They’ve been told that they need one, but what is it, and how is it done properly? READ MORE
Senator Bernie Sanders (VT) is at it again. Last week the longtime minimum-wage advocate proposed raising the federal minimum wage from $7.25 to $17 per hour over the next five years. Sanders says a higher minimum wage will reduce poverty by increasing incomes for millions of workers, but a new study undermines his claim. READ MORE
The push to raise the minimum wage to $15 an hour in both Minneapolis and St. Paul has successfully boosted the average worker’s hourly pay in both cities, but it has also led to sharp drops in the numbers of available jobs and hours worked, new research from the Federal Reserve Bank of Minneapolis has found.
Many economists have reached similar conclusions about minimum wage increases in the past. Still, the size of the impacts the researchers measured — by comparing Minneapolis and St. Paul to data culled from other Minnesota cities from 2017 through 2021 — were eye-popping, especially in low-wage industries. READ MORE
Quisque iaculis facilisis lacinia. Mauris euismod pellentesque tellus sit amet mollis.