Federal Contractors Can Soon Anticipate Rules on Pay Transparency and Salary History for Applicants and Employees

On December 4, 2023, the Federal Acquisition Regulation (FAR) Council submitted a proposed rule on “Pay Equity and Transparency in Federal Contracting” to the White House Office of Management and Budget (OMB) for approval. On January 11, 2024, OMB approved the proposal, thus clearing the way for the FAR Council to publish the proposed rule. READ MORE

Bank of America's cuts: "Compensation expectations have been butchered"

If you're looking for a way to moderate bonus expectations ahead of a tight bonus round, it helps to make people focus on something else. Like actually having a job. 

This is what Bank of America seems to have achieved with yesterday's surprise cuts three days before bonuses are announced. Before the cuts, it seems that people there were slightly optimistic. Since the cuts, they are not. "Compensation expectations have been butchered," says one recently departed MD. READ MORE

'Outrageous' CEO pay targeted in new bill from Bernie Sanders, US Democrats

U.S. Senator Bernie Sanders and a group of Democratic lawmakers are pushing to raise taxes for companies that pay their chief executives at least 50 times more than their typical worker's salary, saying the bill was needed to limit corporate greed.

The union-backed proposal, which could impact some of the nation's biggest companies and largest employers, would also require Treasury Department guidelines to prevent companies from avoiding the tax by using contractors rather than employees, the senators said in a statement on Monday. READ MORE

Will $20 minimum wage crush fast food in California?

California is on the cusp of putting the fast-food industry into a curious economic experiment – mandating a custom minimum wage for larger restaurant chains.

Come April, fast food’s biggest players will be paying workers $20 hourly vs. 2024’s statewide $16 wage floor. The thinking behind the legislation is that the industry’s workers have long been underpaid, and a bold move was required to get these poorly compensated workers some hope of surviving California’s high cost of living. READ MORE

30 Cities with Highest Average Salary in the US

In this article, we will look at the 30 cities with highest average salary in the US. We have also discussed the growing economic importance of smaller cities. If you want to skip our detailed analysis, head straight to the 10 Cities With Highest Average Salary in the US. 

In a shift away from traditional tech hubs, recent data from job and internship platform Handshake reveals an interesting trend among young workers seeking tech jobs in smaller US cities. Columbia, Maryland, leads the list with 190% year-over-year increase in job applications, followed closely by Boise, Idaho, at 116%. The appeal of these cities lies in factors such as lower living costs, diverse industry opportunities, and less stressful commutes. READ MORE

ESG Performance Metrics in Executive Pay

Companies have crossed the Rubicon in integrating environmental, social & governance (ESG) performance into their executive incentive plans. With three-quarters of S&P 500 index companies embedding some type of ESG metric into their leadership compensation policies, the practice is now deeply ingrained. But there is an opportunity to move beyond generic goals and tailor ESG performance measures in a way that contributes to competitive advantage and long-term growth.

The Conference Board and ESGAUGE conducted a thorough analysis of executive incentive plans described in 2023 proxy statements, and the following are our key findings and insights on the use of ESG performance metrics. READ MORE

The Pros and Cons of Deferred Compensation

Near the end of last year, the Los Angeles Dodgers rocked the sporting world, signing Shohei Ohtani to a 10-year, $700 million deal, easily the most lucrative contract in the history of American sports. Even though nearly everyone expected Ohtani to sign for big money, the size of the contract was nonetheless shocking, despite his incomparable gifts as both a hitter and pitcher.

Yet what might have been more surprising is how the contract was structured: Almost all the money will be deferred. Officially, that allowed the Dodgers to sign other players without paying huge penalties for violating Major League Baseball’s spending rules. (And, in the interim, they have).  READ MORE

Use Tax Policy to Combat Skyrocketing Executive Compensation

Executive compensation is a key driver of escalating wealth disparity. In 2023, top executives continued to reap substantial salaries and bonuses, even in a year that was economically challenging for many.

More broadly, data shows the ratio of CEO to worker compensation in the 350-largest publicly owned companies has increased by a multiplier of 16 since 1965. The provision of tax breaks to corporations is a driving force behind increasing executive compensation. READ MORE

From Deloitte To McKinsey, Management Consultant Salaries Are Stagnating In 2024

Starting salaries for MBA and business masters graduates entering the management consulting sector—including at top firms such as Deloitte, McKinsey, and EY-Parthenon—stagnated going into 2024, according to a new industry report. 

The annual Management Consultant Salary Report, based on data sourced directly from new hires across the consulting industry, revealed that consulting salaries in 2024 were flat when compared with 2023.  READ MORE

See the Median Salary of Americans Your Age in Every State

How much you earn varies greatly depending on where you live, and also where you are in your career. Are you just starting out? In your peak earning years? Or are you retired?

According to a recent study by Scholaroo, overall, Generation X has the highest salaries in the country. But they aren’t bringing in big bucks in Mississippi, where millennials, Generation X and baby boomers all have the lowest median income. Gen Z has the lowest salaries overall, and their median salary is the lowest in West Virginia, the study found. Meanwhile, the highest-earning boomers are in Hawaii. READ MORE

D.C. Mayor Signs Bill Requiring Compensation Disclosures and Prohibiting Use of Wage History

On January 12, 2024, D.C. Mayor, Muriel Bowser, signed the “Wage Transparency Omnibus Amendment Act of 2023.” If not overturned during the subsequent 30-day Congressional review period, beginning June 30, 2024, employers with at least one employee in D.C. will be required to publish wage and benefit information to prospective employees and wage information for candidates for advertised promotion and transfer opportunities. Employers with at least one employee working in D.C. will also be prohibited from “screening prospective employees based on their wage history.” READ MORE

This ‘risky’ negotiation strategy doesn’t always work out, says pay transparency expert

Hannah Williams isn’t afraid to ask strangers how much money they make. In 2022, she quit her six-figure job to make a business out of it, Salary Transparent Street, which brought in $1 million last year.

Since launching her TikTok channel, Williams, 27, estimates she’s interviewed upwards of 1,000 people, from teachers to nurses to entrepreneurs and more, about their earning power and money habits. READ MORE

D.C. to Require Pay Range in Job Ads, Ban Salary History Queries

Businesses advertising job openings in Washington, D.C., will have to include a pay range and will be barred from asking job applicants their prior salary history, under legislation Mayor Muriel Bowser signed into law Friday.

The measure (B25-0194) largely mirrors the job posting pay transparency laws that have spread to California, Colorado, Hawaii, Illinois, New York, and Washington state. Similar bills came close to passing in the Maine and Massachusetts legislatures in 2023. READ MORE