Do executive compensation incentives really matter?

When it comes to executive incentives, the conventional wisdom is clear — if you want to improve a metric, tie compensation to it. Unfortunately, creating the right mix of incentives to influence the right combination of outcomes is tricky, and many companies fail to do this well.

A new analysis by the EY-Parthenon team closes the loop on an important question: How much do executive compensation incentives matter in improving a company’s focus on return on invested capital (ROIC) and cash flow (CF)? The analysis has lessons about designing incentives that achieve the desired outcomes. READ MORE

Most US Employers Plan to Keep 2026 Salary Increases Flat to 2025

Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today released the results of its October 2025 Mercer QuickPulse® US Compensation Planning Survey.

The survey of more than 1,000 US organizations revealed that on average, employers plan to hold base salary increases for merit at 3.2%, and total increases at 3.5%, which encompasses all salary increases, including for merit, promotions, cost-of-living, and other adjustments, in 2026 – same as the actual increases employers reported in 2025. READ MORE

Some Employers to Have an Extra Pay Period In 2026

It is a common practice across employers of all sizes and industries to pay employees on a biweekly (every two weeks) payroll cycle. With 52 weeks in a year, that means 26 pay periods in a year. But every decade or so, an unusual circumstance arises in which employees who are paid biweekly will have 27 pay periods. The reason for this is that 26 biweekly pay periods only add up to 364 calendar days (26 pay periods x 14 days per pay period), which is one day short of a typical year and two days short of a leap year. Thus, a calendar year typically equates to 26.07 pay periods. About every eleven years, that 0.07 discrepancy adds up to 14 days, and thus amounting to an additional biweekly paycheck. This anomaly applies in 2026, and if not addressed, could result in extra pay for employees who are paid on a salary basis. READ MORE

What Can You Do When Workers Use AI to Inform Their Pay Expectations?

Your employees — and the candidates you’re hoping to hire — are likely turning to artificial intelligence (AI) tools to ask what you should be paying them. And, oftentimes, the digital answers they receive fuel dissatisfaction.

“You’ve got significant proportions of employees who are relying on this data, and that’s immediately fostering a sense of distrust,” said Ruth Thomas, the chief compensation strategist at Payscale, a compensation software and data company. “That’s fueling the pay confidence gap that is growing and not shrinking, despite pay transparency.” READ MORE

The Future of Payroll: How Crypto and Stablecoins Are Changing Salaries

Crypto is not just a buzzword anymore; it's changing how we think about everything, even salaries. More startups are looking at crypto payroll solutions, but the volatility of currencies like Solana makes you wonder if this is a good idea. This post is about how stablecoins are stepping in to help create a more stable payroll system, where employees aren't left hanging when prices go haywire. READ MORE

Five Key Wage & Salary Increases California Employers Must Prepare for in 2026

As we approach 2026, California employers face a new round of legal and financial adjustments that will directly impact payroll budgeting, exempt classifications, and compliance risk. From statewide wage increases to industry-specific salary thresholds, these updates require careful planning to avoid misclassification claims, PAGA exposure, and penalties.

Here are the top five increases California employers must prepare for in 2026 — and what you should be doing now. READ MORE

2026 Executive Compensation Outlook: How Boards Are Resetting Pay, Equity, and Bonuses Across Sectors

Executive compensation in 2026 is being shaped by two opposing forces: boards face intense scrutiny on pay and inequality, yet they still operate in a global talent market where top leaders remain scarce and mobile. Surveys of compensation committees and HR leaders indicate a deliberate shift to “measured but competitive” pay strategies—moderating fixed pay growth while preserving upside through equity and performance-based incentives.​

Median salary increase projections have edged down as inflation cools and labor markets soften, but equity-based awards and long-term incentives remain robust, particularly in US and global large-cap companies. The result is a compensation environment where headline cash increases look restrained while total realizable pay can still expand meaningfully if performance and markets cooperate.​ READ MORE

US SEC chief calls for redo of executive compensation disclosure rules

Wall Street's chief regulator said on Tuesday the U.S. Securities and Exchange Commission should reform rules requiring disclosure of executive compensation and move to reduce the legal burdens facing smaller companies.

In an address at the New York Stock Exchange billed as a statement of his vision for the future of capital markets, SEC Chair Paul Atkins also previewed major themes in the agency's deregulatory policy agenda. READ MORE

How Does Your Salary Compare to Others in Your Industry? Find Out Where You Stand

Many people think their pay is “average,” but when you stack your salary next to people with a similar title, even in other industries, you might be in for a surprise.

Most employers set salaries based on industry trends, job title, region, and the specific skills needed. Knowing exactly where you stand, and why, is the first step to boosting your pay. Let’s see what the numbers say in 2025. READ MORE

2026 Proxy Season: A Look Ahead to Executive Compensation Issues and Considerations

As the 2026 proxy season approaches, public companies and their boards are navigating a rapidly evolving executive compensation landscape. Amidst new regulatory scrutiny, shifting investor expectations, and ongoing debate over performance metrics and disclosure practices, early preparation is crucial to mitigate potential challenges and proactively manage compensation matters through effective proxy disclosures, well-executed shareholder engagement, and informed compensation committee actions. READ MORE

Crypto Payroll: Navigating the Future of Compensation

The crypto world is buzzing again, folks. With Bitcoin's price shooting up, companies are now scrambling to offer crypto salaries. It's a trend that's hard to ignore, given that 1 in 4 companies are already doing it. But are we ready for the rollercoaster that comes with it? The volatility of Bitcoin raises some eyebrows about the sustainability of this trend. Let's dive into what's happening in 2025 and how businesses can navigate these waters. READ MORE

How U.S. Policy Shifts Are Affecting Organizational Incentive Plans

2025 has brought significant changes to U.S. economic policy — tariff upheaval being perhaps the most consequential. As a result, organizations have been carefully reassessing their human capital strategies, particularly around short- and long-term incentive plans.

Twenty-eight percent of the 68 organizations that responded to an October pulse surveyOpen in a new tab by consulting firm WTW identified tariffs as a primary driver affecting their compensation strategies. Forty-nine percent cited related market volatility and economic uncertainty. READ MORE

For most people, a bigger salary can make you happier—just not at your job

Money really can buy you happiness — just not at the office, finds new Wharton research.

That’s specifically true for U.S. adults earning up to $200,000 per year, according to an analysis published Thursday by Matt Killingsworth, a senior fellow at The Wharton School of the University of Pennsylvania. Among that demographic, higher earners are happier in their day-to-day lives, but they’re not any happier at work than people with lower incomes, the analysis says. READ MORE

SEC Compensation Recovery Rule- Restatements and Related Clawbacks

SEC Rule 10D-1 – often referred to as the compensation clawback rule - requires public companies to adopt policies to recover excess incentive pay that was paid to current or former executives because it was based on metrics that were later restated. Created under the Dodd-Frank Act, the rule aims to reinforce accountability by requiring the recoupment of bonus or performance-based compensation tied to incorrect results, regardless of whether the error was caused by simple mistakes or misconduct. It applies to both material (“Big R”) and immaterial (“little r”) restatements.

The rule also adds disclosure requirements: companies have to flag on the cover of their annual reports when the filing reflects corrections to past financial statements, explain whether and how they pursued recovery of excess compensation, and include their clawback policy as an exhibit to the annual report. READ MORE

3 ways to bring balance to employee goal setting in 2026

Performance goals are a practical tool for building talent and adapting to change. They also play a vital role in employee wellbeing and the employee experience, helping people feel confident, motivated and aligned with business needs. However, organizations and employees only get these benefits when performance goals are created thoughtfully and supported in the right ways.

Too many performance goals or too little support can dilute focus and effectiveness. As in many other areas both in business and life, striking the right balance is key. The right number of well-supported performance goals will help employees stay engaged and productive, while also helping organizations build the skills they need to keep up with emerging technologies like AI. READ MORE

Tim Tebow says Belichick nixed his $1M one-day payday, then cut him ‘days’ later. Here are the top financial takeaways

The idea of making $1 million in a single day might sound unreal — but that was the exact opportunity former NFL quarterback Tim Tebow had in front of him.

In a recent interview with Graham Bensinger, Tebow reflected on his short stint with the New England Patriots and the massive endorsement offer he received at the time: $1 million for one day’s work. READ MORE

I earned $600,000 last year. I made half at Google and $300,000 from my side hustle, which I spend 5 hours a week on.

Between 2015 and 2024, I more than tripled my salary in Big Tech, from under $80,000 to $292,000. It felt unreal.

But if I'd known that I'd make $302,000 in 2024 through my content creation side hustle, I think my younger self, who was lower middle-class and not very financially literate, would feel proud. I've come a long way in building generational wealth for myself and the people in my life. READ MORE