Getting Your First Job After College? 3 Signs Your Starting Salary Is Too Low

A big reason many people are willing to take on the expense of college is that having a degree tends to lead to higher wages. Workers with a bachelor's degree earn a median $2.8 million over the course of their careers, according to the Georgetown University Center on Education and the Workforce. By contrast, workers with only a high school diploma earn a median $1.6 million.

If you've recently graduated college, you may be aware that you're probably not going to manage to command the most impressive salary. After all, your experience may be minimal to nonexistent, and if you didn't study in a specialized field, you may not have a six-figure paycheck hitting your bank account right away. READ MORE

Heads of failed banks questioned on executive pay, how they handled risk at Senate hearing

Executives from two large U.S. banks that failed dramatically in March appeared in front of the Senate Banking Committee to respond to questions about why their banks went under and what regulators could have done to avoid the calamities.

Along with questions about how these banks failed, senators used the hearing to also address executive pay and whether senior executives in the U.S. are being rewarded more for short-term gains — like rising stock prices — than for ensuring their companies’ long-term health. READ MORE

How do you align executive pay with long-term value creation?

Executive pay is a hot topic in the corporate world, especially in times of crisis, disruption, and stakeholder scrutiny. How can you design a compensation package that motivates your top leaders to drive long-term value creation for your organization and its stakeholders, while avoiding excessive risk-taking, short-termism, and misalignment with your strategy and culture? In this article, we will explore some key principles and practices for aligning executive pay with long-term value creation. READ MORE

How Early- To Mid-Stage Startups Should Use Incentive Compensation In This Economic Environment

With the global economy slowing during this exceptional period of uncertainty, it is essential that companies, especially early- to mid-stage startups dependent on outside investors, leverage incentive compensation to drive revenue growth.

Offering a commission on top of a base salary has served to motivate salespeople to meet or exceed their quotas. A well-designed incentive comp plan is an important strategic lever that can be applied to dramatically improve the financial results of a company. Well-designed incentive comp programs allow companies to improve productivity and reduce employee attrition. It also motivates employees to do their best work. READ MORE

Chipotle, Papa John’s link ESG goals to bonus compensation, and pay practice is moving below the C-suite level

The political debate around corporate focus on environmental, social and governance issues is nowhere near over, but more C-suites and corporate boards are putting their own money where there mouth is when it comes to the the importance of these strategies. Companies are increasingly linking ESG metrics to executive compensation packages. READ MORE

2023 Proxy Season Portends More Say-on-Pay Successes

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

Salaries for financial professionals rise 5% yet lag inflation

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

What are the key steps and challenges in communicating and implementing your compensation survey findings?

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

Warner Bros. Discovery Shareholders Slam CEO’s Compensation In Say-On-Pay Vote

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

10 highest-paying IT skills for 2023

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

Gen Zers and millennials who make more than $100,000 a year explain how they spend their salaries

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

White House wants to ban use of salary history in setting pay for new federal hires

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 skips salary increases for full-time employees this year

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

How do you know a company is accurately rewarding the CEO for climate targets?

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

Is Executive Compensation the Answer to ESG Accountability?

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

Is the US Moving Towards National Pay Transparency Legislation?

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 practices aren’t meeting employee needs, analysis suggests

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

2023 U.S. Total Compensation Increases Averaged 4.1%

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