Rethinking Compensation Strategies for 2024 & Beyond

The dynamics of the workforce, shaped by technological advancements, cultural shifts and global events, necessitate a profound reassessment of compensation strategies in 2024. Businesses must adapt to emerging trends, reconsider traditional approaches to performance-based compensation and embrace principles of equity and inclusion. Staying agile and knowledgeable on compensation-based developments is imperative to remain competitive and prosperous in the new year.

This article explores the essential elements that your organization should consider when rethinking compensation strategies. READ MORE

ISS and Glass Lewis Update 2024 Proxy Voting Policies

Institutional Shareholder Services (ISS) and Glass Lewis, the two most influential proxy advisory firms, recently released updates to their voting policies for the 2024 proxy season. The ISS US policy update will apply for shareholder meetings held on or after February 1, 2024. The Glass Lewis US policy updates, included in its 2024 US Benchmark Policy Guidelines, will apply for shareholder meetings held on or after January 1, 2024. This alert provides a high-level description of each firm’s key policy updates for the United States.

Following numerous substantive policy updates for the 2023 proxy season, ISS included only one US policy update for 2024. Glass Lewis’ US policy updates for 2024 also are relatively light, with a continued focus on executive compensation and board composition and risk oversight. READ MORE

These 2024 IRS changes can increase paychecks, lower taxes

The new year brings slightly larger paychecks to many Americans thanks to changes the IRS made to adjust for inflation.

Why it matters: Cost-of-living adjustments — such as those on taxes, wages and Social Security payments — are crucial as consumers cope with inflation and high prices.

The big picture: New IRS tax brackets and increased standard deductions go into effect Jan. 1 along with other tax inflation adjustments that include the mileage rate increasing by 1.5 cents a mile and higher contribution limits for tax-deferred retirement plans. READ MORE

These jobs saw the biggest pay hikes across the U.S. in 2023

The ferocious inflation that slammed Americans during the pandemic was partially offset by the strongest pay gains in years. Even as people paid more for everything from groceries to rent, real weekly earnings for the typical U.S. worker rose 1.7% between 2019 and 2023, government labor data shows.

Driven by a resilient labor market, some jobs saw particularly strong wage increases over the last year, according to a recent survey from compensation data firm Payscale. Here are the 10 jobs with the hottest wage growth in 2023 compared with the prior year, along with median pay. The analysis is based on responses from more than 3,500 workers across 15 job titles. READ MORE

This Person Quit Their Job After Managers Wouldn't Raise Their Pay. Then, The Recruitment Team Unknowingly Offered Them The Same Position For 4.5X Their Original Salary

If you have a LinkedIn or other job search account, then you've likely had a recruiter slip into your DMs with some "amazing" opportunity. But, have you ever had a recruiter from a former job reach out? Well, that's what happened to redditor slobberypuppykisses, who we'll call SPK for short.

In an unfortunately relatable post, SPK vented: "A third party recruiter reached out to me asking for a call to discuss X role he was recruiting for at an undisclosed company. After going through my experience for about five minutes, he tells me the name of the company and the expected salary. It took everything in me not to laugh and hang up." READ MORE

Elon Musk’s X, accused of withholding bonuses promised to staff, will have to face a court battle

A federal judge has ruled that X, formerly Twitter, must face a lawsuit after staff accused the company of failing to pay bonuses promised to them. The judge on Friday denied X’s motion to dismiss the case.

X stands accused of failing to pay out annual bonuses to staff after its October 2022 acquisition by billionaire Elon Musk – despite repeated assurances from executives in the lead-up to and following the deal that the company would do so, according to a lawsuit filed in June 2023 on behalf of employees. READ MORE

No good deed goes unpunished: Avoiding FLSA pitfalls surrounding holiday pay

The end of the year often brings a bevy of holiday compensation: bonuses, paid days off, and higher rates of pay. However, it is critical for employers to keep the Fair Labor Standards Act in mind when doling out these benefits. Failing to do so could result in underpayment and liability exposure. Any employer with non-exempt employees – those that are eligible for minimum wage and overtime protection under the FLSA – has to carefully consider how holiday compensation is paid. Because, unless the holiday compensation falls into one of the FLSA’s tightly prescribed exceptions, it has to be included in calculating employees’ regular rate for overtime purposes. READ MORE

CEO pay decreased in 2022 for the first time in at least three years

After receiving substantial pay increases in 2021, CEOs saw their income drop in 2022, according to Gallagher’s new report, “CEO and Executive Compensation Trends: 2023 Edition”.

The study of more than 2,830 companies found that in 2022, CEO pay decreased 7.3% and 2.7% for the overall Russell 3000® and S&P 500® indices, respectively — starkly contrasting with increases of 35.5% and 18.7% for 2021. (CEO pay increased 0.1% and 3.4% in 2020.) READ MORE

Key trends in compensation planning

As organizations gear up for the challenges and opportunities of the next several years, strategic compensation planning takes center stage. The evolving landscape of work, coupled with societal shifts and technological advancements, necessitates a forward-thinking approach. This article provides several key analytics that Human Resources (HR) professionals should consider as part of their compensation planning process. The key trends outlined below provide invaluable insights for businesses aiming to stay competitive and responsive to the dynamic needs of their workforce. READ MORE

New Year, New Rules? 2024 May See Implementation Of The DOL’s Proposal For Increased Exemption Salary Thresholds While State-Specific Thresholds Are Also Set To Increase

As 2023 comes to a close, so did the notice-and-comment period for the U.S. Department of Labor’s (DOL) proposed rule increasing the minimum salary required for employees to be exempt under any of the “White Collar Exemptions” from overtime pursuant to the Fair Labor Standards Act (“FLSA”). With that period closing in November, it can be anticipated that steps will be taken in the upcoming election year to implement the new rule.

As a reminder, and as explained in our previous blog post, the DOL has proposed the threshold salary level for exemption from overtime be raised from $35,568/year ($684/week) to $55,000/year ($1,059/week). It also proposes increasing the Highly Compensated Employee exemption threshold to $143,988 annually. The rule will not modify the duties necessary for exemption qualification. Employers may wish to keep these thresholds in mind as they review and implement compensation decisions in the new year. READ MORE

Here's how much the salary of a Tesla new hire is in 2023

Whatever your opinion may be on Elon Musk and Tesla  (TSLA) - Get Free Report, the company is part of the Magnificent Seven for a reason. And while the Tesla stock price has still not returned to peak 2021 levels, it still had an incredible year with growth of about 137% year-to-date.

The vehicle and energy company continues to hire new blood despite some layoffs earlier in the year and a key change in the hiring process triggered by founder Elon Musk. As of the end of 2022, Tesla had around 130,000 employees, hiring about 30,000 during the calendar year. READ MORE

Scandal-hit companies which went after executive compensation

BP (BP.L) on Monday cut over $40 million in compensation from former CEO Bernard Looney after the British oil giant concluded he had knowingly misled the board over personal relationships with colleagues.

Looney resigned in September after less than four years in the top job for failing to fully disclose details of past personal relationships with colleagues.

The following is a list of companies whose executives had to forego their bonuses or pay them back after being hit by scandals. READ MORE

How startups shifted their compensation strategies in 2023

“The last couple of years of compensation have been probably the craziest that I’ve ever seen. And I’ve been working in comp for over 20 years now,” Josh Steinfeld, principal product strategist at Carta, a total compensation platform, told HR Brew.

Startup compensation, in particular, has been particularly susceptible to volatility in the wake of a 2021 hiring boom that saw HR departments scrambling to fill labor demand. This boom cycle came to a halt when the Federal Reserve started raising interest rates to slow lending, and venture capital funding slowed considerably. READ MORE