Does It Pay to Link Executive Compensation to ESG Goals?

As ESG investing has boomed, so has a movement to tie executive compensation to environmental, social, and governance goals such as reducing carbon emissions, diversifying the workplace, and improving corporate culture. Like all things ESG-related, this has sparked skepticism and controversy. Are these incentives and bonuses driving CEOs to meet ambitious goals or are they just another way to pad compensation packages? READ MORE

Share Buybacks and Executive Compensation: Assessing Key Criticisms

Stock repurchases (or “buybacks”) — where a company uses excess cash flow to repurchase shares of its stock to reduce common shares outstanding — have attracted significant attention from journalists, academic researchers, and government regulators; the concept of repurchases has also accrued significant supporters and detractors. According to Securities and Exchange Commission (SEC) Chair Gary Gensler, “In 2021, buybacks amounted to nearly $950 billion and reportedly reached more than $1.25 trillion in 2022”. [1] In 2023, the SEC revised rules issued in 1982 governing buybacks to require quarterly reporting of daily officer and director stock transactions that occur during a period of a stock repurchase program in addition to narrative disclosure of the details of the company’s buyback program and trading policies applicable during the program. The new regulations are intended to increase transparency of buyback processes and executive stock transactions during such programs. This Viewpoint summarizes Pay Governance research on buybacks within the S&P 500, the impact of buybacks on incentive compensation, and recent regulations governing buybacks. READ MORE

Section 409A and the Deferred Compensation Trap for Startups and Early-Stage Growth Companies

Frequently during the financial crisis, the COVID pandemic, and now in a rising interest rate environment, we see startup and early-stage growth companies that, in the effort to conserve cash, reduce or eliminate the pay of the founders and senior executives for some period of time.  While this step is logical and critical to the company achieving long-term success, it is fraught with potential adverse consequences under Internal Revenue Code section 409A (“section 409A”).  

This article is intended to be a general overview of the issues that arise and the proactive and mitigating strategies that may be applied to avoid the harsh tax consequences to the employee when violations of section 409A occur. READ MORE

Pay Increases Budgeted for 4% in 2024, Survey Finds

When it comes to paid time off from work, America doesn’t have the best reputation. Last year, researchers named the U.S. one of the worst countries in the world for giving employees paid leave.

American workers get an average of 10 paid days off per year, according to careers site Zippia. While this increases slightly after five years with the same employer, it’s still far less than workers in other parts of the world are entitled to—often by law. READ MORE

How much of a $100K salary is left after taxes in each state?

The average salary in the United States is close to $100,000, but don’t be fooled, as the vast majority of Americans earn much less. Less than 20 percent of individuals say that they earn a six-figure-plus salary according to Zippia, and slightly more than a third of households.

And of those that do, the number that feel that they live paycheck-to-paycheck has been increasing, jumping seven points in just one year to 45 percent in 2022. One of the main factors is the cost of living which varies across the nation generally more expensive on the East and West coasts and in major metropolitan areas in between. READ MORE

How Sweet It Is, if You’re the Boss

The work can be demanding and full of stress. But you get paid more than everybody else — vastly more, as the latest numbers remind us.

We know how much more bosses are paid because every year, thanks to the Dodd-Frank law of 2010, publicly traded American companies must reveal to their shareholders a trove of information about the compensation of top executives. What’s more, companies must compare the rich earnings of their leaders with the pay of ordinary workers. READ MORE

A Walmart delivery driver said his weekly earnings dropped from $1,500 to $200 due to competition from bots

Some drivers for Walmart's delivery platform Spark say there's a growing problem on the app involving users who deploy bots to hoard orders and make it harder for other drivers to get deliveries.

A group of drivers who said they had been affected by the prevalence of bots in their area held a demonstration in front of a Walmart Supercenter in Cicero, Illinois, on Thursday, as reported by the Chicago Tribune. READ MORE

12 Secrets to Keeping Employees Happy Without a Raise

Happy, engaged employees tend to be more productive and creative – and less likely to quit. While businesses should always strive to provide fair and competitive compensation, employee happiness isn’t just about money. Employees genuinely appreciate the opportunity to make a difference and be recognized for their contributions. 

Business owners and managers interested in achieving better employee retention rates can enact policies, offer perks and foster a company culture that boosts employee well-being and improves productivity. When employees can achieve a positive work-life balance and pursue a meaningful career path, everyone wins.  READ MORE

DoorDash says it will give drivers the option to earn a minimum hourly wage

DoorDash said it is changing the way it compensates its food delivery workers by giving them the option of earning a minimum hourly wage, rather than be paid by delivery. 

The change comes amid criticisms of gig-economy services like DoorDash that their workers may not even earn the minimum wage due to the way the companies structure their pay, which are typically based on per-service fees rather than hourly rates.  READ MORE

How To Set Your Global Compensation Strategy

Labor market pressures and the importance of staff retention mean that setting compensation effectively is more important than ever. In the Mercer Global Talent Trends 2022-2023 report, improving strategic workforce planning and reconsidering compensation setting were ranked the second and fourth overall priorities for HR leaders. With complications arising from remote work (allowances, expense reimbursements), having a cohesive compensation policy can be difficult enough in a regular company, but when you run a global company, there are extra challenges. READ MORE

‘Loud Quitting’ Is The Next Step From ‘Quiet Quitting,’ ‘Bare Minimum Mondays’ And ‘Acting Your Wage’

“Quiet quitting,” “Bare Minimum Mondays” and “acting your wage” were the slogans workers lived by during the Great Resignation. There were sufficient jobs available to pick and choose opportunities. Knowing they were in the driver's seat, employees could push back on bosses by doing only the basic amount of work required with little effort or enthusiasm. READ MORE

DOL Wage Rule For Immigrants And H-1B Visa Holders Could Be History

The Biden administration may shelve a Department of Labor rule that would have changed how the U.S. government sets prevailing wages for H-1B professionals and employment-based green card applicants. Employers are likely to welcome the move since the Trump administration had attempted to use the wage rule to price out of the labor market many foreign-born scientists and engineers. READ MORE

The Key to Salary Happiness

The key to pay satisfaction is a bigger salary, right? Not exactly. 

A majority of workers feel they’re fairly paid, but at the top of the list are independent workers across all industries, according to a recent survey of 2,500 American workers. The findings suggest that while earning what you think you’re worth is important, so is having some power over when and how much you work for the money.  READ MORE

Former Hertz Chief Beats Executive Compensation Clawback Lawsuit

Former Hertz Corp. chief executive Mark Frissora defeated the company’s lawsuit seeking to claw back his incentive compensation following his 2014 resignation in connection with an accounting scandal.

Hertz accused Frissora of violating the company’s clawback policies on incentive compensation and its standards of business conduct. But none of these policies are binding, standalone contracts that the company can enforce through a breach-of-contract action, Judge Evelyn Padin of the US District Court for the District of New Jersey said Monday. READ MORE

Executive Compensation and Clawbacks

Clawback compensation has been a longstanding tool for both public and private companies to recoup excesses paid to employees after the occurrence of certain untoward events. For example, it is not uncommon to find clawback clauses in separation agreements of public and private companies that operate to take back severance if the former employee breaches nondisclosure, non-solicitation, or non-compete agreements. Various executive compensation plans can likewise incorporate clawback provisions entered contractually by private companies. READ MORE

12 US Cities with High Salaries and Low Living Costs

As an avid researcher and data enthusiast, I recently embarked on a fascinating journey to uncover the cities in the U.S. where your dollar stretches the furthest.

My curiosity led me to pore over the United States Census Bureau’s 2020 American Community Survey, where I meticulously analyzed and ranked 100 cities. The criteria? They had to boast both a median household income and a mean household income above the national average. READ MORE