‘Don’t worry’ about your salary early in your career, Warren Buffett says—focus on this ‘enormously important’ factor instead

Berkshire Hathaway CEO Warren Buffett announced at the company’s annual shareholder meeting on May 3 that he will step down as chief executive at the end of this year. He will stay on as chairman.

Since taking over what was once a struggling textile company in 1965, Buffett has turned Berkshire Hathaway into one of the largest conglomerates in the U.S. Under his leadership, Berkshire hit a market cap of $1 trillion in 2024. The legendary investor is also one of the richest people in the world, worth an estimated $160 billion. READ MORE

Diving into the quality of ESG and sustainability metrics in executive compensation

There is a growing focus on the quality of environmental, social and governance (ESG) and sustainability incentive metrics as prevalence levels of these metrics have started to reach a plateau, according to the results of a recent WTW global study.

Additionally, our study with several major investment firms reinforced the importance for companies to disclose necessary information for them to have confidence in the quality of ESG and sustainability metrics. This information can be characterized by three key interconnected principles detailed in this paper: READ MORE

ISS reports decrease in executive pay rises

Chief executives of large-cap companies saw a median pay increase of 7.5 percent between 2024 and 2025 despite ‘market turbulence’, according to the latest data from ISS-Corporate.

The firm, which provides data and analytics to corporations, scrutinized the salaries of CEOs at 320 S&P 500 companies. Salary growth is down slightly from the year before, when it grew 9.2 percent. READ MORE

2025 raises fell short of employers’ recent projections

“Our latest data indicates a moderation in base pay increases, reflecting the evolving dynamics of the labor market,” Lauren Mason, Mercer’s U.S. workforce solutions leader, said in a statement. “With heightened economic uncertainty, employers are focused on maximizing compensation impact through strategic decisions, such as proactively rewarding high performance.” 

In the survey of more than 800 U.S. companies, employers said they expected to promote about 10% of their workforce, up from 8% the previous year, and to award an average raise of 8.5% with promotions.  READ MORE

‘Year of Contention’: Employers Mull Tight Budgets, Pay Expectations

Amid rising labor and political tensions, 2025 will most likely be a “year of contention,”Open in a new tab with employers tightening budgets and employees advocating for fair pay and better working conditions, according to Payscale’s latest Compensation Best Practices ReportOpen in a new tab. Released in March, the report revealed workplace and compensation trends, analyzing data and insights from nearly 3,600 primarily U.S.-based industry professionals. READ MORE

Salary history bans: A running list of states and localities that have outlawed pay history questions

State and local governments are increasingly adopting laws and regulations that prohibit employers from requesting salary history information from job applicants.

The laws are aimed at ending the cycle of pay discrimination and some go further than merely banning pay history questions. A few also prohibit an employer from relying on an applicant’s pay history to set compensation if discovered or volunteered; others prohibit an employer from taking disciplinary action against employees who discuss pay with coworkers. READ MORE

Compensation Arrangement Considerations in Light of 2025 Tariffs

The impact of the Trump administration’s evolving tariff regime will be felt by US companies across the board. Many will encounter rising material costs and reduced profit margins, particularly given the significant pressure on the supply chain.  Taken together with the recent stock market volatility, companies (both public and private) will need to address the impact of these challenges on their business and, importantly, consider the effects on director and executive compensation programs. READ MORE

10 executive compensation and governance questions to answer before your initial public offering

Amid fluctuating market conditions, the outlook for initial public offerings (IPOs) on U.S. exchanges in 2025 remains cautiously optimistic, with indications of a potential rise in both the number and aggregate value of public listings in the latter half of the year.

Privately-owned companies considering an IPO should consider taking the following steps to ensure that their executive compensation plans and governance policies are aligned with both continuing and new shareholder expectations. All companies considering an IPO should be able to answer 10 critical executive compensation and governance questions before going public. READ MORE

IT compensation satisfaction at an all-time low

A recent survey found IT compensation satisfaction has hit a record low, with relatively few IT workers saying they are satisfied with their pay. Industry observers, however, suggest the issue might not be entirely about money, leaving CIOs with options for boosting morale on thin budgets.

In its latest IT salary survey, tech careers site Dice found IT worker compensation satisfaction has recently plunged, “with only 41% of tech professionals reporting they were either ‘very’ or ‘somewhat’ satisfied with their compensation. This represents a significant decline from previous years.” READ MORE

Sec. 280G and the evolving executive compensation landscape

Since the enactment of Sec. 280G of the Internal Revenue Code as part of the Tax Reform Act of 1984 (Division A, Deficit Reduction Act of 1984, P.L. 98–369) and the issuance of the final Treasury regulations in 2003, the landscape of executive compensation arrangements has changed significantly. In part, arrangements have developed in response to the use of more sophisticated employer structures, changes in capital markets, and demands of management. The effect is that applying Sec. 280G in certain situations is more challenging because it does not address or contemplate considerations that now arise 40 years post–enactment. This item discusses certain issues that may arise in evaluating the current landscape, but other issues may arise as well. Determining the Sec. 280G consequences requires careful analysis of organizational structure as well as payments and benefits provided under executive compensation arrangements. READ MORE

ADP Reports Private Sector Employment and Compensation Both Increased in March

According to the ADP National Employment Report released on Wednesday, private sector employment increased by 155,000 jobs in March. Year-over-year, annual compensation was up 4.6%.

In March, manufacturing delivered stronger-than-average job gains for the second straight month. Construction hiring slowed. Natural resources and trade, transportation, and utilities lost jobs. READ MORE

The Power of Pay-for-Performance Sales Compensation Plans

With the current economic concerns and disruptive business environment, organizations are unsure about their growth prospects (and from where that growth will come). Worries about tariffs and a potential recession are leading them to revisit their sales compensation plans.

In response to rising costs and potential declines in spending, businesses are increasingly implementing pay-for-performance strategies. The Alexander Group’s recent sales compensation trends surveyOpen in a new tab found 71% of polled organizations are emphasizing this approach in their comp plans. READ MORE

Workers in these states just got a pay raise

The corks have been popped, the calendar pages turned and a day that promised fresh starts also brought with it some pay bumps for millions of Americans.

Hourly minimum wages increased in 21 states on Wednesday, as part of ongoing efforts to have pay keep up with the rising cost of living or to meet milestones such as a $15-an-hour minimum wage. The increases — which range from 18 cents to $1.75 (hello, Delaware) — are expected to affect more than 9.2 million workers, raising their pay by a combined $5.7 billion, according to the Economic Policy Institute. READ MORE

Income protection: Are your executives fully covered for disability?

One of the ways organizations invest in attracting and retaining top executive talent is through comprehensive compensation packages. However, many companies overlook a critical gap in their executive benefits strategy: adequate income protection through disability coverage. While standard group long-term disability coverage may appear sufficient on paper, it often falls short of providing true lifestyle protection for high-earning executives. READ MORE

Enduring high-performing companies take a best-fit executive pay approach

High-performing organizations tend to set the bar for all others. They perform well financially, attract and retain the best talent and exhibit best practices within the business as well as in their communities. Another way they stand out is through their executive pay programs.

We recently explored how enduring high-performing companies pay their executives. Our findings supported what we first discovered a decade ago: These companies follow a path less traveled. READ MORE