If you search online for an artist — a painter, photographer, or songwriter — there is a good chance you’ll find curated pages that showcase their work and tell their creator story. In creative fields, curating a digital portfolio is a calling card. But in other fields, it can be an afterthought, if it’s even thought of at all. Many in management do not think enough about how others discover them in the digital space — or, as we call it, their digital professional presence (DPP). READ MORE
The Compensation Committee’s Evolving Role in Human Capital Management
Many leaders delved into human capital management (HCM) when the economy was booming, just before the Great Resignation. Boards and compensation committees worked to understand talent issues and make their companies more attractive, inclusive, and engaging.
Now that the labor market is shifting, HCM has become even more critical as companies navigate new market-related challenges. The issues are not abating, just evolving, as stakeholders press for more attention on employees. While many companies worked diligently on the symptoms, they may have missed some underlying nuances driving core HCM issues. Compensation committees now have an opportunity, if not an imperative, to step up oversight and partner with management on these complex talent issues. READ MORE
What is deferred compensation?
It may be an understatement to say that employees want to get paid. But not everyone wants all of their pay right away. Some employees, especially those planning a retirement nest egg, would rather receive a portion of their income at a later date. This voluntary practice is commonly known as deferred compensation. READ MORE
Shifting Business Priorities Mean Shifting Sales Compensation Plans
Many companies face the challenge of transforming their go-to-market strategy as they grow from start-up to volume growth. One of the key elements of this transformation is the design of a sales incentive plan that aligns with the company’s goals and motivates the sales force. READ MORE
Incentivizing Nonfinancial Metrics for Private Company Executives
Private companies are increasingly employing nonfinancial metrics in executive incentive plans, consistent with this trend among publicly traded companies.
Private companies have far more governance leeway in their compensation plan design, which can be an advantage in some instances. The adoption has been slower than at public companies, with the most significant gains in annual bonus plans. READ MORE
Equal Pay Named in EEOC Targeted Priorities
The Equal Employment Opportunity Commission (EEOC) has taken another step toward achieving its goal of equal pay and eliminating discrimination.
EEOC objectives for fiscal years 2024 through 2028 are highlighted in its Strategic Enforcement Plan (SEP), released on September 21. And its message is uncompromising. READ MORE
More employers try to shield low-wage workers from health costs
More workplaces are offering at least one health plan that is free to employees or offers no-deductible coverage for certain services as many workers struggle to afford care.
Driving the news: The number of large employers offering at least one free medical plan to employees increased from 11% this year to 15% in 2024 coverage, according to a new Mercer survey. READ MORE
Fast Company’s CEO Fair Pay report: The 15 ‘most fairly’ paid finance CEOs
The masters of the universe at banking and finance companies are famous (or infamous) for their bulging compensation packages. But not every company in the sector boasts an exorbitantly remunerated executives: Some make only a small multiple more than their average employee.
As part of Fast Company’s CEO Fair Pay report, we’ve broken out the 15 CEOs of finance companies (as determined by SIC code) who make the closest in salary to their median employee. This list has a few of the CEOs who were featured on the 15 most fairly paid CEOs on the Russell 3000, though most make enough more than their median employee that they did not feature there. READ MORE
The Midwest is getting left behind as the rest of America sees big raises
The Midwest may have the lowest unemployment rate of any US region, but it's falling behind in raising wages for its workers.
Compared to the rest of the US, the Midwest is lagging in terms of real median wage growth, rising just 0.4% — or eight cents — from 2019 to 2022, new research from the left-leaning think tank Economic Policy Institute shows. This is in contrast to the nation's 3.1% median wage growth during the same period. READ MORE
Analyzing the 2023 Proxy Season Say on Pay
With the 2023 proxy season now in the rearview mirror, WTW’s post-season say-on-pay (SoP) research within the Russell 3000 indicates a shift from the recent norm.
Though shareholder support remained generally stable at 90% (compared to 89% in 2022 and 91% in 2021 at this time), results have improved in comparison to the past two years when it comes to failures and opposition. READ MORE
Pay Transparency: A Closer Look at the Risks, Rewards and Regulations
Pay transparency laws are evolving rapidly at the state and local levels across the United States. Today, a growing number of employers must now disclose salary ranges in job postings and provide pay information to job applicants and employees on request. Salary history bans are also active in a number of jurisdictions. READ MORE
Examine Compensation Decisions Carefully in the Case of a Demotion
Whether a demotion is prompted by an internal reorganization, a merger or the need to better match an employee's skills to a different position, compensation is a major factor when determining how to best navigate the change.
Shifting compensation is more clear-cut when an employee knowingly applies for, interviews for and accepts a different position within the same company that carries less responsibility and pay. However, when an employer initiates a worker's demotion, one of the biggest considerations is how to handle morale and performance issues if the employee’s pay is decreased — or how to address pay equity questions that may arise if the employee's higher salary remains in place. READ MORE
Equal Pay Transparency Hearing Scheduled in Colorado
On September 29, Colorado’s Department of Labor and Employment released its proposed Equal Pay Transparency (EPT) rules. The update is aimed at providing clarity on the state’s Ensure Equal Pay for Equal Work Act. SB23-105, which comes into effect on January 1, 2024, amends Colorado’s pay transparency statute.
A public hearing on the proposed rules is scheduled for October 30, 2023. If adopted, the Equal Pay Transparency rules will also take effect from January 1, 2024. READ MORE
The CEO Shareholder: Straightforward Rewards for Long-term Performance
To be successful, companies need to attract and reward leaders who create value over the long term, but executive remuneration often focuses on short- term targets. Shareholders and their advisors similarly focus on short-term returns as a primary metric in the evaluation of pay plans. Replacing these short term-oriented approaches with direct long-term stock ownership by executives is a better solution.
It’s no surprise that executive remuneration stands out as one of the most visible and closely examined aspects of a publicly listed company’s corporate governance program. READ MORE
California Announces 2024 Substantial Increase in Computer Professional Exemption Compensation Rate
The minimum wage thresholds for the California computer professional exemption have been raised in line with inflation. The California Department of Industrial Relations (DIR) published a memo on October 17, 2023 increasing the compensation threshold for exempt computer professionals by 3.3% over the 2023 rates. The compensation rates are adjusted annually to account for inflation according to the California Consumer Price Index (CPI) for urban wage earners and clerical workers. READ MORE
Microsoft CEO Satya Nadella and other executives take a big hit to compensation
Every year Microsoft is required to submit a regulatory filing that includes compensation for its CEO and other top executives. In the most recent regulatory filing for fiscal year 2023 submitted by Microsoft, we are able to see that Microsoft's C-suite has had a substantial reduction in its compensation over fiscal year 2022. This was mostly due to the company missing several of its financial targets for the year. We have a breakdown of the compensation numbers and what it means on a larger scale. READ MORE
Why pay transparency won’t work without real pay equity transformation
When it comes to the drivers behind increased pay transparency, a new survey has found that the stick is taking priority over the carrot.
According to WTW’s 2023 Pay Transparency Survey, regulatory requirements are, by far, the most commonly cited (81%) factor for encouraging greater levels of pay program communication. Coming in a distant second, third and fourth—in a near dead heat—are company values and culture (55%), employee expectations (54%) and an ESG/DEI agenda (53%). READ MORE
Michigan elections board deadlocks on a new $15-per-hour minimum wage initiative
A group seeking to raise Michigan's minimum wage is headed to court after the Michigan Board of State Canvassers deadlocked on its certification for the ballot over a change in its petition language.
The petition's definition of an employer bound by the state's minimum wage changed significantly between when the board approved summary language in January 2022 and when it authorized other items on the form in February and March 2022 — so much so that the changes would exempt 90% of Michigan businesses from paying any sort of state minimum wage. READ MORE
8 Industries Where a Six-Figure Salary Will Make You Happy
Does money buy happiness, as the saying goes? An old study from 2010 found that once you reach annual earnings of $75,000, money doesn’t make you that much happier.
Inflation, a pandemic, and rising housing costs may have changed that number since 13 years ago. Moneyzine.com recently surveyed 1,200 Americans to see if they are happy with their income. For eight professions polled, it takes at least six figures to be happy. Four other professions come in over the $75,000 mark, while most hover close to it. READ MORE
Netflix Promises ‘Substantial Changes’ to Executive Pay Model After Shareholder Pushback
Netflix has promised to make “substantial changes” to its executive pay model after significant shareholder pushback regarding the sizable pay packages.
“We recognize we don’t have wide support for our executive compensation model of the last 20 years. We are listening to our shareholders and plan on substantial changes for 2024 to a more conventional model,” Netflix said in its third quarter earnings statement. “Our executive compensation plan will continue to be built on pay for performance.” READ MORE