Tesla reassures judge that move to Texas won’t affect Elon’s compensation case

Tesla has successfully reassured a Delaware judge that its attempted incorporation move to Texas won’t affect Elon Musk’s CEO compensation case.

In a new letter, Chancellor Kathaleen McCormick, the judge who canceled Elon Musk’s $55 billion compensation package after she concluded Tesla’s board misled investors, said that Tesla’s lawyers reassured her that the company won’t use its new shareholder vote on the compensation and incorporation move to Texas to circumvent the case. READ MORE

Boeing shareholders approve CEO’s compensation as company faces investigations, possible prosecution

Boeing shareholders on Friday approved CEO David Calhoun’s $32.8 million compensation and heard leaders explain what the troubled aircraft maker is doing to improve the quality and safety of its planes after a door plug blew off a Boeing 737 Max jetliner in January.

Calhoun said the company is finishing a 90-day plan for fixing its manufacturing problems — a report the Federal Aviation Administration demanded after the door-plug blowout. READ MORE

What Buttons Are Tech Companies Pushing to Maximize Their Pay Programs?

Notwithstanding a persistent string of layoffs in the technology sector over the past year, attracting the right tech talent continues to pose challenges for employers. According to the findings from WTW’s 2024 Tech Pay Actions Survey (see Figure 1), 33% of respondents said it was “difficult” to find qualified candidates to fill open positions for tech-related jobs. For comparison, just 11% of respondents categorized the current talent acquisition environment as difficult for non-tech jobs. READ MORE

College degrees earned in these states will net you a higher salary

The state where you earn your college degree has a significant impact on your future earnings, but to get the higher salaries you also have to pay more in tuition and expenses, a new study from Teach Simple finds.

Massachusetts has the highest median earnings, with graduates from institutions in the state making an average of $65,319 annually. The average annual cost of attending a school in Massachusetts is $26,268, the second highest tab in the country, and students graduate at a rate of 67 percent. READ MORE

High salaries, poor performance: These were the most overpaid CEOs last year

When it comes to CEO salaries, no one topped Broadcom’s Hock Tan last year. A new study by the Wall Street Journal ranks Tan (and his $161.74 million pay package) as the highest among S&P 500 companies last year.

And while there are valid arguments to be made about excessive executive compensation and the growing pay gap between executives and their employees, it’s not hard to see why Tan was awarded that figure. In the past year, Broadcom shares have more than doubled. But what about those companies whose stock lost value last year? Are executives there still cleaning up, regardless? READ MORE

Banking Agencies Revive Incentive-Based Compensation Rules for Financial Institutions

The Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Federal Housing Finance Agency (FHFA) and the National Credit Union Administration (NCUA) recently re-proposed rules on incentive-based compensation arrangements at certain financial institutions with at least $1 billion in assets (Proposed Rule). Among other things, the Proposed Rule would subject certain compensation to recovery for at least seven years after vesting if a “senior executive officer” or “significant risk-taker” (based on their relative level of incentive compensation or ability to expose financial assets to risk) engaged in misconduct that resulted in significant financial or reputational harm to the institution or committed other specified bad acts. READ MORE

‘Reasonable compensation’ for Sub-S owners

You just gotta love the English language. We throw around a lot of words that can have different meanings. Take “reasonable” as an example. Webster’s dictionary says it means “much as is appropriate or fair; moderate; sensible.” The IRS says that means “what you would do to an unrelated third party.” (With regards to buying something, paying a fee for a service, etc.)

A little background on today’s topic. Owners of Sub-S corporations (which could be an LLC which has elected to be taxed as a Sub-S) are required by the IRS to pay themselves a “reasonable compensation.” Their reasoning is because Sub-S income is not subject to self-employment tax. READ MORE

You’re Fired: How to Pay Final Wages to Terminated Employees

Employers must have established payroll processes in place to ensure compliance with state laws regulating payment upon termination of employment, two industry experts said May 9.

Most states have laws requiring employers to pay employees within a certain time frame after their employment is terminated, said Kevin Valuet, Director of Payroll Training for PayrollOrg. However, most states make a distinction between voluntary and involuntary termination of employment, and different requirements apply for each. READ MORE

The Real Reason why Companies Offer Restricted Stock Units to Employees and how it Benefits Them

Job satisfaction and hefty compensation are considered the most basic factors that make an offer attractive for professionals. But instead of just paying higher salaries, companies have resorted to breaking the compensation into tax, variables, and stock components. One of the most popular instruments that most public companies in the United States offer their employees are “Restricted stock units (RSU)”. Back in 2000, only one-fifth of the public companies gave restricted stocks, but in 2023 the number has jumped significantly to 94%. Companies like Amazon, Apple, Uber, Verizon, Bank of America, Microsoft, and Starbucks are granting restricted stocks to their workforce. READ MORE