Bill seeks recouping executive pay following bank failure

U.S. Sen. Mark R. Warner (D-VA) has joined a group of colleagues to introduce legislation that would authorize efforts to recoup executive pay when a bank failure occurs.

Bill proponents noted the Failed Bank Executives Clawback Act would, among other provisions, require the Federal Deposit Insurance Corporation (FDIC) to regain up to three years of compensation received by bank executives, board members, controlling shareholders and other key decision makers. READ MORE

Tying executive compensation to ESG metrics is pointless and ridiculous

As virtue signals go, environmental, social and governance (ESG) initiatives are a popular and noisy bandwagon that companies are jumping aboard to show how much their brands care about things that often have little or nothing to do with their bottom-line business success.

An increasing number of companies are even taking the window dressing of doing good to an absurd and sometimes reckless level by tying executive compensation to leadership’s performance on these feel-good metrics. More than 70 per cent of Fortune 500 companies now have baked – or are considering baking – some ESG elements into their executive-compensation formulas. READ MORE

Executive Compensation and Stakeholder Capitalism

Addressing the needs of a range of stakeholders has long been a part of managing a company, though explicit “stakeholder capitalism” has grown in influence in recent years following Business Roundtable’s updates to “The Purpose of the Corporation” in 2019. While the broader stakeholder focus is growing, shareholder value creation is still the primary company objective, implying that financial and shareholder value metrics should remain the most prominent incentive tools for executive pay programs. With the ongoing market evolution, many companies are more actively contemplating broader stakeholders and considering direct adoption of ESG metrics in pay programs. In these cases, many enduring principles of executive compensation should be applied to ESG metrics, including considering the alignment to company strategy and values and the incentive value that a broader view of performance can provide. READ MORE

For the few women who sit atop S&P 500 companies, thinner paychecks as median compensation slips

Last year was a mixed bag pay-wise for the women who run companies in the S&P 500 -- compensation increased for more than half of them, but the median pay package fell 6%.

Of the 343 CEOs in the compensation survey of S&P 500 companies done by the AP and Equilar, only 20 were women. Because they are a small group, changes in pay for only a few can easily skew the overall figures. READ MORE

How HR can make the most of working with a compensation consultant

Among the many tasks CHROs often face, helping the company’s board of directors shine before shareholders can be one challenging area, especially as it relates to your investors’ “say on pay” vote for executive compensation packages. Because, ultimately, if shareholders don’t approve the compensation strategy, it can give the board, and HR, a black eye. 

Take Netflix, for example. Its board of directors encountered an embarrassing situation as shareholders withheld their support during the “say on pay” vote at the company’s annual shareholders meeting last week. Fortunately for Netflix and other public companies, such a vote is advisory only and not binding. READ MORE

Netflix shareholders reject multi-million dollar compensation package for executives

Netflix (NFLX) shareholders rejected a multi-million dollar executive compensation package on Thursday that includes the pay of co-CEOs Ted Sarandos and Greg Peters. The company spent an estimated $166 million on its executive pay package last year.

The non-binding vote comes against the backdrop of the Hollywood writers' strike as members of the Writers Guild of America (WGA) encouraged shareholders to vote against the package earlier this week. READ MORE

How to Conduct a Pay Equity Analysis

As more organizations embrace the hybrid workplace, the need for fair pay policies becomes increasingly important. Ensuring that employees receive equal pay for equal work not only fosters a healthy working environment but also promotes diversity, inclusion, and employee satisfaction. As such, conducting a pay equity analysis is a crucial step in identifying and rectifying any pay discrepancies. READ MORE

HR leaders lack data access for pay equity

Of those surveyed, more than a third (35%) of senior HR leaders do not have enough data on pay, half (50%) lack employee self-identification data, and three in five (59%) are without data on employee demographics.

Alongside significant data gaps, there is a reliance on legacy technology and out-dated, manual internal processes, which makes pay equity analysis much more challenging and ultimately less effective. Most organizations outsource pay equity analysis to external consultants, but for those that manage it in-house, the most common tool reported by senior HR leaders is spreadsheets (59%). READ MORE

EEOC Title VII: What It Means for AI & Pay Equity Compliance

Employers that use AI and automated systems such as pay equity software to streamline workplace processes have received a stark reminder about potential employment discrimination violations.

On May 18th, the EEOC released a technical assistance document outlining the application of Title VII of the Civil Rights Act of 1964 to automated systems incorporating artificial intelligence (AI) in HR-related uses. The document aims to prevent discrimination caused by AI to job candidates and employees, including areas affecting pay equality. READ MORE

Around 79% of American workers believe AI will threaten their salary and lead to pay cuts, new survey finds

American workers are concerned about the adoption of AI in the workplace, especially the prospect of wages declining across the country, a new survey found.

The survey, carried out via survey platform Pollfish and commissioned by employment screening service Checkr, polled 3,000 employed American workers between April 27 and 28, 2023. An equal number of Boomers, Gen Xers, Millennials, and Gen Z were surveyed as part of the report. READ MORE

What do new grads want from an employer? To start, a salary range

In the past year, layoffs and hiring yo-yoed across industries, creating a sense of whiplash and anxiety for graduates of the Class of 2023. After witnessing the class before them enter a job market of inflated salaries and extraordinary perks, 2023 graduates are resetting their expectations, and focusing on some particular priorities, according to a recent report.

In its eighth annual “Class of” report designed to uncover how college graduates’ career expectations meld with HR professionals’ hiring plans, iCIMS, a recruitment software company, surveyed 1,000 college seniors and 500 HR/recruiting professionals. READ MORE

The law vs. salary secrecy

"How much money do you make?"

If that question freaks you out, there's likely a good reason. Whether it's because of the fear of reprisal from an employer or plain social convention, not talking about your salary has, for generations, been the status quo. But in the last few years, increasing pay transparency has become a common cause for young workers, anti-discrimination advocates, and, increasingly, state legislators. READ MORE

Startup CEO Salaries Decline to 2019 Levels

The average startup CEO salary in 2023 is $142,000, down from $150,000 in 2022 and $146,000 in 2021 and back to the same level as 2019. The decline is attributed to increasingly restricted capital markets and the resulting requirement to extend cash runways.

Importantly, the pay gap between male and female startup CEOs is closing, but remains wide after the dramatic spread that took place during the pandemic. In 2019, there was a $5,000 difference between male and female CEOs that increased to a $45,000 difference during the pandemic in 2020. In 2021 that spread lessened to a $16,000 difference and a $20,000 difference in 2022. This year, the spread has improved modestly, to a $14,000 difference between male and female startup CEOs. Male CEOs earned an average of $145,000 this year, while their female counterparts earned an average of $131,000. READ MORE

What Is a Living Wage? Definition & Related Concepts

A living wage is the minimum amount of income a person or family requires to meet their basic needs without assistance in the place where they live and work. Typically, earning a living wage means making enough money to pay for housing, utilities, food, healthcare, clothing, transportation, childcare (if applicable), and any other necessities with a small margin left over for emergencies and unexpected expenses. READ MORE

See What a $100K Salary Looks Like After Taxes in Your State

A six figure salary is a goal for many people. However, even if you're fortunate enough to make a six-figure salary you may take home a lot less home after taxes, depending upon the state you live in.

If federal taxes seem to take a big enough chunk, there are also FICA deductions, social security taxes, and you might have to pay state and local taxes, depending on where you live. Each state has its own tax brackets and rates, so how much of your hard earned money goes to taxes varies by state. READ MORE

From Illinois to Hawaii, States Race to List Salaries in Job Ads

Bills requiring salary ranges in job postings have become a priority for several state legislatures, most recently Illinois, adding to the variety of pay transparency rules employers must learn to navigate nationwide.

Illinois and Hawaii soon will join a fast-growing list of state and local governments requiring salary information in job ads, assuming the states’ governors, both Democrats, sign the legislation (Illinois HB 3129 and Hawaii SB 1057). Employment lawyers see Massachusetts as next in line to pass a similar law, given its history of pay equity legislation. READ MORE

Certifications can boost your salary by as much as 20%. Here’s how you can boost your own pay

In the aftermath of the pandemic, many companies slowed down their hiring and were more conservative about handing out raises and promotions in an effort to stay afloat amid the ongoing economic uncertainty—to many workers’ dismay. 

But waiting on your boss to give you a raise isn’t the only way to increase your salary. You could make a strong case for a pay bump if you can prove that you add more value to your company. 

One concrete way to do that is to work toward expanding your skillset.  READ MORE

CEOs of Major US Companies Who Are Paid 1000 Times More Than Their Employees

CEOs of companies listed on the S&P 500 earned an average of $18.8 million last year, up about 21% from the previous year, Times recently reported. This jump in executive pay came despite an 18% drop in the market index in 2022.

Many of these CEOs were gifted generous stock options by their boards as a reward for steering their companies through the challenges of the coronavirus pandemic. But the ratio of CEO pay to the typical earnings of company employees has been trending upwards for decades, due largely to an increase in the use of stock-based compensation. READ MORE