SEC Hosts Compensation Disclosure Roundtable in Advance of Potential Rule Changes

On June 26, 2026, the Securities and Exchange Commission (“SEC”) hosted a roundtable to discuss whether executive compensation disclosure rules produce information material to investors and if not, how they should be amended. The roundtable consisted of representatives from public companies and investors, as well as other experts in this field. Remarks were made by SEC Chair Paul S. Atkins and the other sitting commissioners. A recording of the roundtable is available on the SEC’s website here. Chair Atkins noted in his remarks that one might describe the SEC’s current compensation disclosure requirements as a “Frankenstein patchwork of rules.” He suggested that the compensation disclosure rules have become unwieldy, are not cost-effective and result in disclosure that a reasonable investor struggles to understand. Commissioners Hester Peirce and Mark Uyeda echoed his views. We expect that the SEC will issue one or more rule proposals amending executive compensation disclosure requirements, possibly later this year. READ MORE

A new era of restaurant workers may earn six-figure salaries and benefits that 'no other industry' can provide

Waiting tables or serving up food in the drive-thru may seem like a first step into the workforce – but for some it could pave the path that leads to a big-money job.

Amid a nationwide restaurant worker shortage, many brands are finding ways to attract and retain their employees while offering big bucks and benefits to those who wish to work long-term or climb the ladder. READ MORE

How the OBBBA affects tax treatment of compensation and benefits

The One Big Beautiful Bill Act (OBBBA) changes the tax treatment of compensation and benefits in several ways that have major implications for employers. Employers may face modified tax obligations, new reporting requirements, and challenges implementing new processes and rules. The changes will require employers to evaluate and adapt their compensation and benefits programs and administrative practices. READ MORE

SEC Signals Potential Shift in Disclosure Requirements

Executive compensation disclosure requirements were the primary topic of the June 26, 2025 SEC roundtable, with particular focus on the CEO pay ratio and pay-versus-performance disclosure rules and perquisites. Several SEC Commissioners shared their perspectives on the current executive compensation disclosure framework during the event. Chairman Paul Atkins, who assumed office in April, compared the existing framework to “Frankenstein’s monster,” a patchwork of well-intentioned requirements that has evolved into something far removed from its original purpose. Commissioners Hester Peirce and Mark Uyeda noted the significant compliance burden that the current rules impose on companies and questioned whether this disclosure serves the Commission’s mission of investor protection. Continued evaluation is likely to result in proposed rulemaking in this area, with elimination or streamlining of existing executive compensation rules. READ MORE

Court Strikes Down Morgan Stanley Appeal in Deferred Compensation Class Action Lawsuit

A federal appeals court shot down Morgan Stanley’s attempt to appeal a lower court’s decision that its deferred compensation plans were protected by federal law. The decision could impact numerous arbitration proceedings filed against the wirehouse by former employees.

The Second Circuit Court of Appeals issued its dismissal of Morgan Stanley’s appeal, arguing it didn’t have proper jurisdiction, and denied Morgan Stanley’s request that the district court judge who filed the previous opinion “strike its legal conclusion that the deferred-compensation plans” fell under the Employee Retirement Income Security Act. READ MORE

Comparing pay for Microsoft's boss and the company's workers

Last week, Microsoft eliminated 9,000 jobs—laying off 4% of its workforce (and a big chunk of its gaming team)—despite having reported nearly $26 billion in net income in the first three months of 2025.

Massive profits may not preclude a company from cutting jobs. Perhaps they know of some weakness to their business that necessitates eliminating the jobs of scores of experienced professionals. READ MORE

SEC Signals Coming Changes to Executive Compensation Disclosure

On June 26, 2025, the Securities and Exchange Commission (SEC) hosted a roundtable on executive compensation disclosure requirements with representatives from public companies, investors, industry groups and advisors. In his introductory remarks, SEC Chair Paul Atkins referred to the current disclosure requirements as a “Frankenstein patchwork of rules,” a refrain echoed by Commissioners Hester Peirce and Mark Uyeda, each of whom signaled an interest in clarifying certain rules and simplifying current executive compensation disclosure. READ MORE

Senate Tax Package Includes Major Changes to Endowment and Executive Compensation Excise Taxes

On July 1, the Senate approved its version of “The One Big Beautiful Bill Act,” containing several provisions relevant to tax-exempt organizations. Importantly, certain proposed amendments contained in draft legislation released by the Senate Finance Committee two weeks ago (covered in our prior Alert here) were removed from the approved bill following a determination by the Senate Parliamentarian that those provisions were outside the scope of what could be approved by the Senate under the reconciliation procedure. The Senate-approved legislation is substantially different from that approved by the House last month (covered in our prior Alerts here and here). The House must now approve the Senate’s version, or the two chambers must work to reconcile those differences, before the legislation can be sent to the President for signature. READ MORE

AI can help benefit leaders with the compensation process

Determining salaries is one of the most critical pieces to attracting and retaining talent, and technology may have the potential to improve the decision process significantly for benefit managers and employees.  

Over 70% of U.S. companies use AI in some capacity, including compensation decision making, according to business networking platform Connex Partners. While benefit managers may feel uncomfortable relying on automation for something as complex and sensitive as deciding salaries, it has the potential to drastically improve the process for them, as well as current and prospective employees.  READ MORE

Mark Cuban said he was 'embarrassed' to find out some Dallas Mavericks staff needed government benefits

Mark Cuban said he was "embarrassed" to find out some of his staff were having to use government benefit programs.

"When I found out I had employees at our arena on public assistance, I immediately gave raises to every hourly employee and their managers," Cuban said of staff working for the NBA's Dallas Mavericks, adding that he was "embarrassed" to make this discovery. READ MORE

SHRM Opposes California Bill with Blanket Employer Wage Penalty

SHRM has expressed its opposition to California Assembly Bill 1234, introduced by Assemblymember Liz Ortega. The bill proposes a major overhaul of the labor commissioner’s wage claim process, introducing new financial penalties for employers, regardless of fault or intent. While SHRM advocates for the strong enforcement of wage and labor laws, it believes this bill’s disproportionate penalties could hurt employers operating in good faith.  

Under AB 1234, a mandatory 30% administrative penalty would automatically apply to every order, decision, or award the labor commissioner issues — even before any appeal or judicial review can take place. According to SHRM, this blanket penalty would impose a significant financial burden on employers who may simply be exercising their right to due process, particularly in cases where the facts are uncertain or liability is ambiguous. Such a framework discourages legitimate defenses and could dissuade employers from seeking clarity or fairness in disputed claims. READ MORE

These 2 States Have the Lowest Minimum Wage. Here's How Much Full-Time Employees Make a Year

Georgia and Wyoming share the dubious honor of having the lowest state-mandated minimum wages in the U.S., at $5.15 an hour.

However, that applies only to employers and workers who are not covered by the federal Fair Labor Standards Act (FLSA). Otherwise, workers must receive at least the current federal minimum wage of $7.25 per hour, which hasn't changed since 2009. READ MORE

Minimum wage set to rise in 15 cities and states in July. Here's where.

Hundreds of thousands of workers across more than a dozen cities and states will soon receive higher pay, thanks to minimum wage hikes set to take effect July 1. 

More than 800,000 workers in two states —Alaska and Oregon — as well as Washington, D.C., will be impacted by higher minimum wages that go into effect July 1, according to the left-leaning economic think tank Economic Policy Institute (EPI). Additionally, a dozen cities and counties are also set to boost their baseline pay rates next month.  READ MORE

Never assume you’re ‘entitled’ to a salary bump—‘it doesn’t work like that in the real world’

You could have the longest tenure on your team, do your work correctly and on time, and even be well connected at your company — and still be overlooked for a promotion.

This shouldn’t come as a surprise, according to Klutch Sports Group founder and CEO Rich Paul. Too often, employees feel like they’re owed raises and promotions without putting in any extra work to get them, he says. READ MORE

Trends in relative total shareholder return plan design

When it comes to long-term incentive (LTI) vehicles, relative total shareholder return (TSR) remains the most popular performance metric. In fact, TSR was used in more than 50% of performance awards either as a single metric or one of multiple metrics, according to WTW’s 2024 Long-Term Incentives Policies and Practices Report.

Given this prevalence, companies need to stay informed about TSR plan design practices and trends. Considering that design features can affect the associated expense, administrative burden and ultimate value delivered, we surveyed our clients to identify significant TSR award features. READ MORE

U.S. Chamber Comments on SEC Request for Information on Executive Compensation

The U.S. Chamber of Commerce (“Chamber”) submits these comments for the Securities and Exchange Commission’s (“SEC”) roundtable regarding public company executive compensation disclosure. The Chamber commends the SEC for holding this roundtable on a timely issue and frequent topic of discussion within the SEC’s corporate disclosure framework. We appreciate the Chairman’s initiative to review disclosures with respect to the public company model to evaluate whether certain disclosures serve as impediments to companies accessing and remaining in the public markets. READ MORE