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HR leaders are increasingly facing sleepless nights over rapid changes in the world of compensation—as pay transparency laws sweep the country, illuminating pay equity issues and their own need to develop data-crunching skills and savvy.
These three issues—pay transparency, pay equity and data analytics skills—were cited as top concerns among HR leaders at the WorldatWork conference last week in San Diego. READ MORE
Free lunch and game nights and live concerts — oh boy!
These are some of the perks a growing number of U.S. employers are dangling in front of workers, in hopes of luring them back to the office. Companies are also relaxing their dress codes, adding commuter benefits and even raising salaries to entice employees. READ MORE
Twitter failed to pay out annual bonuses to staff after its acquisition by billionaire Elon Musk despite repeated assurances from executives in the lead-up to the deal closing that the company would do so, according to a new lawsuit filed on behalf of employees. READ MORE
The Fourth Circuit Court of Appeals recently affirmed the Tax Court’s application of the multifactor test in its denial of bonus deductions for a closely held company’s CEO. In the case, the Tax Court held that a portion of compensation paid by a C corporation to its CEO and sole shareholder was unreasonable compensation under Section 162(a)(1).
The reasonable compensation issue is critical for C corporations for determining whether payments are deductible as compensation and incur only one layer of tax as compensation at the individual level, or should be considered distributions that are not deductible against corporate tax and are taxed as dividends again at the individual level. READ MORE
“An incentive compensation program should drive behavior, engagement and results that a company wants its employees, customers and investors to know are important to it. Incorporate ESG incrementally and with that broader goal in mind. Set targets that are meaningful to the core of the business and make sense in the industry, that can be communicated clearly, and that are measurable. Then support those targets with robust data collection processes and reporting frameworks to ensure integrity and credibility and to facilitate clear and effective reporting out to key stakeholders.” READ MORE
This March, Silicon Valley Bank (SVB) collapsed after gross risk management — making it the largest bank to fail since the Great Recession of 2008. The failure resulted in growing economic instability and prompted another major bank, Signature Bank, to fail as well.
Silicon Valley Bank failed because of executives’ mismanagement of interest rate risk. However, due to weaknesses in our current federal law, SVB’s executives were able to get and keep their bonuses. Greg Becker, SVB’s CEO, received $9.9 million in total compensation in 2022 with a $1.5 million cash bonus. He also sold nearly $30 million in stock, including $3.6 million days before the bank’s failure. READ MORE
Today, the Senate Banking Committee meets for a relatively rare event: a legislative markup. It’s actually the first legislative markup under committee chair Sen. Sherrod Brown (D-OH), who took over the gavel in 2021. (There have been several dozen nomination markups, but nothing for legislation.)
Senate committees in general reserve markups for legislation that can pass, and the Recovering Executive Compensation Obtained from Unaccountable Practices (RECOUP) Act, a joint measure from Brown and the committee’s ranking Republican, Sen. Tim Scott (R-SC), is that kind of bill. It seeks to hold executives who bankrupt their companies more accountable, empowering the Federal Deposit Insurance Corporation (FDIC) to claw back compensation, remove executives from their positions and the industry at large, and impose civil penalties. The legislation follows the collapse this spring of Silicon Valley Bank and other large regionals that failed to manage interest-rate risk. READ MORE
The Senate Banking Committee is set to vote Wednesday morning on a bipartisan bill that would allow the FDIC to claw back some compensation from senior executives at failed banks.
Why it matters: The bill has the backing of two key senators on both sides of the aisle and looks to be lawmakers' main response to the failure of Silicon Valley Bank, which set off a mini-banking crisis this spring. READ MORE
Last December, Yun Yati Naing began searching for the job she would begin after graduating from Baruch College in New York City. It was one month after a law passed by the city went into effect requiring employers with four or more employees to post salary ranges on all new job advertisements.
“All my friends were talking about it,” Ms. Naing said. “It really made a difference going into the work force as a fresh graduate. We had no idea what the wages of these entry-level jobs were.” READ MORE
The proliferation of studies, surveys and analyses of public disclosures are turning executive compensation data into a commodity. Those who use this data day in and day out know that finding relevant and robust market data to inform critical pay decisions isn’t easy.
This is especially true for pre-IPO and other non-publicly traded companies. READ MORE
Vast workforces will feature a diversified set of needs, which requires total rewards leaders to lean on data to offer benefits that are befitting their entire employee base.
This was one of several key messages the panel of practitioners conveyed to nearly 2,000 attendees in Tuesday’s opening session at WorldatWork’s Total Rewards’23 Conference in San Diego. READ MORE
Alphabet, the parent company of Google, and Meta were among the top-paying public companies in 2022, according to an analysis by the Wall Street Journal.
The Journal analyzed data compiled by public-company analysts MyLogIQ about the median salaries at 278 companies in the S&P 500. READ MORE
In response to the Black Lives Matter movement that gained traction following the murder of George Floyd in 2020, companies in the U.S. have committed $340 billion to address racial inequity. Three years later, corporate leaders are facing headwinds that could challenge those commitments.
Now, there are concerns that an anticipated Supreme Court ruling could strike down affirmative action in college admissions. The potential impacts of the decision could extend beyond college campuses and reach into corporate America. Companies’ diversity, equity, and inclusion (DEI) efforts could face an even greater backlash and corporate leaders may be pressed to make the case for why this work matters. READ MORE
In the early 2000s, the wage gap between Black and white workers in the U.S. was as large as it had been in 1950.
That is a shocking statistic and a sign of the country’s deep racial inequality. Over the past five years, however, the story has changed somewhat: The wage gap, though still enormous, has shrunk. “It’s a pretty meaningful reversal,” Elise Gould, a senior economist at the Economic Policy Institute, told me. READ MORE
Whatever career you choose, your job becomes a big part of your life. It may even form part of your identity, letting others know about your values, your skills and your interests. If you think a work path that’s a bit more unusual may suit you, you have plenty of options. You can pick a nontraditional job with a salary that allows you to live comfortably.
Earlier this year, the job site Indeed came out with a list of 15 of these jobs. READ MORE
Given rising layoffs and a stubbornly high inflation rate, you’d think companies would be pinching pennies on worker salaries these days.
Yet the opposite is happening, according to a new study.
In general, annual compensation (i.e., salary, bonuses, and benefits) rose higher in 2022 than in 2021 at 278 S&P 500 Index companies according to data collected by MyLogIQ and analyzed by The Wall Street Journal. The review of each company’s security filings tracked 453 S&P mainstay U.S. companies. READ MORE
The events of the last few years triggered a fundamental shift in workplace flexibility standards, mostly for office-based and corporate employees. But how can other workers experience similar flexibility, like those working in quick-service restaurants (QSR), retail, and gig positions, says Tate Hackert of ZayZoon. READ MORE
There’s no question that artificial intelligence is changing our lives. A bot that sounds almost human can author your emails, teach you a new language, book your trip,s or even be your friend. READ MORE
A six-figure salary is a goal for many Americans, but depending on where you live, it might not go as far as somewhere else.
The purchasing power of a $250,000 salary, for instance, depends largely on a city’s cost of living and overall tax environment. High earners might be able to maximize their earnings and take advantage of lower tax rates by moving cities. READ MORE
If the last few years have taught us anything, it’s that the modern economy is turbulent and often challenging. However, a growing number of Americans feel that having just enough money to get by — and managing to live well with less stress — is the true meaning of “wealthy.” READ MORE