Corporate Governance Takeaways Following Rescission of Elon Musk’s $55.8 Billion Equity Compensation Package

“Was the richest person in the world overpaid?” That’s how the Delaware Court of Chancery (the Court) began the 200-page opinion in Tornetta v. Musk to rescind Elon Musk’s entire $55.8 billion 10-year equity compensation package after a ruling that the directors of Tesla breached their fiduciary duty in approving such a robust compensation package for its chief executive officer. The decision in the case and the factors focused on by the Court offer key lessons for boards and compensation committees and is a reminder of the importance of following and documenting the process for approving executive compensation. READ MORE

Are Millionaires Considered Middle Class in Today’s Economy? Here’s What Experts Say

Is it possible to be a millionaire and still be part of the middle class? It’s a question that may seem ridiculous to some–and totally reasonable to others, depending on who you ask.

“I’m often caught in the middle of this hot debate on middle-class identification, especially when millionaires are thrown into the mix,” said Zachary Jarvinen, vice president at Exact Payments. “As a finance expert, I see where the lines blur. Traditionally, middle-class status has been tied to income, education and occupation. But today, it’s about so much more — lifestyle, assets and even self-perception. READ MORE

How Understanding Compensation Can Help You Negotiate Better Pay

With 10 U.S. states enacting some form of pay transparency legislation, there is growing momentum towards achieving pay equity. Because there isn’t yet a federal-level view, companies are responding in different ways, and none yet seem to have moved to full nationwide pay transparency. Despite that, job seekers (and employees negotiating pay raises) now have more information than ever before, and understanding how to interpret publicly available data, and how that fits into corporate compensation structures, is critical to making the most out of salary negotiations. READ MORE

Five Key Areas That Will Affect Sales Incentives in 2024

As we get deeper into 2024, five key areas have emerged that organizations are addressing when considering their new sales incentive strategy and focus. 

Some of these areas have a direct impact on sales compensation plan design, others are areas being contemplated for the change needed in a sales rep’s skills, traits, drivers and/or behaviors. To remain aligned, your sales compensation plan will need to support these areas and not conflict with the new market dynamics.  READ MORE

How pay raises can be a critical tool to boost employee experience

When it comes to the modern employee experience, a new survey has bolstered the idea that when all is said and done, one of the best ways to drive a positive EX is by helping employees strengthen their financial wellness.

The report, “Champions of Change: How HR Decision-Makers Are Delivering Employee Experiences That Matter” from HCM provider isolved, found that 59% of organizations have given cost-of-living raises to employees in the past year, and 32% plan to do so in the near term. For its fourth annual report, isolved surveyed more than 1,000 HR leaders across various industries regarding HR’s biggest threats, successes, and opportunities. READ MORE

States where minimum wage is on the rise

The beginning of 2024 brought minimum wage increases in 22 states, the latest instances of a decade-long trend, according to the National Employment Law Project, a nonprofit group which advocates for workers rights.

Meanwhile, the number of states with minimum wages set at $15 or more expanded this year, going from four including the state of Washington, California, Connecticut and Massachusetts as well as the District of Columbia to seven states as of Jan. 1, with Maryland, New Jersey, and New York State piling in. Joining these states by 2025 will be Delaware, Illinois and Rhode Island, with more anticipated by 2026, according to NELP. READ MORE

A Colorado ski town can't fill a job with a $167,000 salary because potential candidates can't afford to live there

As many rural communities struggle to deal with a jump in housing prices, it's apparently gotten so bad in one Colorado town that a $167,000 salary isn't enough to find an affordable place to live.

A recent report from NBC News detailed how even high earners in Steamboat Springs, Colorado, can't afford to live there, and it's affecting the city government. Gary Suiter, the Steamboat Springs city manager, told the outlet that the town has been unable to hire a head of human resources, with two candidates turning down the job because they couldn't find affordable housing, despite the prospect of a six-figure salary. READ MORE

Important Changes and the Impact of California Industry-Specific Minimum Wage Laws

In the ever-evolving landscape of California labor laws, the minimum wage has once again taken center stage. With the recent state-wide increase to $16 per hour, the Golden State continues to lead the nation in setting minimum wage standards. However, the latest developments go beyond a blanket increase, introducing industry-specific changes that will significantly impact certain sectors. READ MORE

3 Soft Skills You Need To Boost Your Salary In 2024

Have you ever wondered what constitutes the secret sauce of career success and growth? How do you multiply your salary and increase your worth in your industry and job market?

You may think that the world's most successful people within their domains achieve their attainments because of factors such as always knowing the right people at the right time, being part of the elite, or having access to high-quality education. But while this may be partially true, there is only a small percentage of people who fulfil this criteria. It is indeed possible to experience career fulfilment and success at any stage of your career journey, and significantly boost your take-home salary, even without access to these well-esteemed privileges. READ MORE

Even if it's taking less time, it's taking a greater toll: Compensation in the age of AI

As AI, machine-learning and other technologies become bigger parts of the everyday routine of many workers’ jobs, should the way they are paid be affected?

Further, how should that be determined, and who’s making the decisions? The legal field, where large sums of money are traditionally made through billable hours, has been eyeing the question for some time, as more firms use AI to cut down on time-consuming associate’s work, according to David Cohen, senior director, client service delivery at McCarthy Tétrault. READ MORE

Surprise – workers want higher pay

There’s a gap between companies and their workers, as employers are trying to emphasize perks like work-life balance and health care coverage, while employees are prioritizing compensation, according to a report this week from Franklin Templeton.

Most employers, 82 percent, agreed with a statement that “the workplaces of today face insatiable employees that continue to ask for more,” Franklin found. At the same time, 91 percent of companies surveyed experienced turnover rates of more than 10 percent in 2023.

Even as some employers have thrown money at benefits ranging from health care to pet insurance and financial wellness, they may not communicate those benefits very clearly to employees. And in a lot of cases, those benefits aren’t what workers prioritize. READ MORE

Career Websites Face Emerging Role as Salary Transparency Cops

New York City’s accusations that job search websites like CareerBuilder LLC and Monster Worldwide violated its pay transparency law indicate how broadly regulators nationwide will enforce mandates for salary ranges in job ads.

The search sites, along with Indeed and ZipRecruiter Inc., were among more than 30 employers that faced complaints from the city’s Commission on Human Rights late last year. A commission spokesperson said the complaints haven’t resulted in fines, and the agency is focused on urging employers to comply with the law. READ MORE

For high-earning workers, it's hard to break free from 'golden handcuffs'

Lewis knew that a high-pressured workplace was the price for a six-figure payday. The Berlin-based, entry-level consultant believed the stress was worth it for the fast-track to a €150,000 ($162,170; £128,460) base salary at one of the world's most prestigious firms.

"There has to be a willingness to be chained to the desk. You accept those conditions in return for such a high salary – that's the game. If you're not working 12 hours straight, the response is 'you're being paid this much, so you have to'," he says. "When you earn such a high wage it's a psychological block – you feel you've earned it, and worked really hard to get there. You want to get out, but how much of a salary cut can you take?" READ MORE

Meet a 30-year-old delivery driver who dumped the apps to go into business for himself because of a minimum wage law

Tony Illes was riding high for four years as a full-time delivery driver for several apps—by his count, he made 10,000 deliveries, a good living in the gig economy. Just weeks ago, it all came to a screeching halt when he suddenly found himself waiting six hours for a single UberEats delivery request.

“Demand was dead,” the 30-year-old Illes told Fortune.

Shortly afterward, he launched Tony Delivers, a service where Illes brings hungry Seattleites in his Beacon Hill neighborhood food deliveries on his e-bike or e-scooter. Every order in a 1.5- mile diameter costs $5, no matter what customers order. READ MORE

NCAA head warns that 95% of student athletes face extinction if colleges actually have to pay them as employees

NCAA President Charlie Baker said Friday that action by Congress was needed to protect what he described as the “95 percent” of athletes whose ability to play college sports would be endangered by a court ruling or regulatory decision declaring them as employees of their schools.

Speaking to a small group of reporters near the NCAA’s Washington office, Baker was realistic but still hopeful about the prospect of Congress doing what it didn’t do despite persistent requests from his predecessor, Mark Emmert: granting the NCAA a limited antitrust exemption that would allow it to make rules safeguarding college sports without the constant threat of litigation. READ MORE

The VP in charge of Delta’s employee benefits says that their choice to pay out $1.4 billion to workers is all about talent retention and motivation

Delta made a splash last week when it paid its employees a $1.4 billion bonus.

As the airline industry as a whole continues to bounce back from a pandemic-induced downturn, Delta decided to spread the wealth and share the money with workers through its longtime profit-sharing program, nearly doubling the amount it gave out last year. And 2024’s bonus is nearly 10 times greater than the $108 million the company shared with employees in 2022. READ MORE