Fed researchers: $15 minimum wage in Minneapolis and St. Paul boosted pay — but cost jobs

The push to raise the minimum wage to $15 an hour in both Minneapolis and St. Paul has successfully boosted the average worker’s hourly pay in both cities, but it has also led to sharp drops in the numbers of available jobs and hours worked, new research from the Federal Reserve Bank of Minneapolis has found.

Many economists have reached similar conclusions about minimum wage increases in the past. Still, the size of the impacts the researchers measured — by comparing Minneapolis and St. Paul to data culled from other Minnesota cities from 2017 through 2021 — were eye-popping, especially in low-wage industries. READ MORE

$7.25 federal minimum wage is a ‘national disgrace,’ says Sen. Bernie Sanders, backing push for $17 per hour

The federal minimum wage of $7.25 per hour has not changed in nearly 14 years.

Last week, Sen. Bernie Sanders, unveiled a new plan to update the national pay rate, which he said is currently a “national disgrace.”

This time, prompted by high inflation, he is calling for $17 per hour, a $2 increase from the $15 per hour for which he and other Democrats had previously advocated. READ MORE

The exact six-figure salary that Gen Z and millennials need to feel like they’ve ‘made it’

As a child, it was easy to fantasize about the many things that would symbolize reaching success.

Perhaps it was being able to buy any clothing you liked without having to look at the price tag, or if you were really aspirational, a collection of vintage sports cars, or (probably more realistically) being able to buy as much candy as you could carry home. READ MORE

5 Tips for Answering Salary Questions in a Job Interview

Salary discussions are the trickiest part of the already stressful job interview process -- and not just because the topic makes some people uncomfortable. Tipping your hand the wrong way at the wrong time can ruin your prospects or force you to settle for less.

"Sharing salary expectations can work against job seekers in receiving a fair offer," said Brandon Bramley, founder of The Salary Negotiator. "If the candidate shares a lower compensation than what the company could offer, they are more likely to receive that low compensation. On the other hand, if they suggest a higher number than what the company could offer, there is a possibility that the company may lose interest and look for other candidates." READ MORE

MBA grads reliably earn a six-figure salary in these 6 industries

Students pursuing an MBA often hope to land a job with a six-figure salary after graduation. And that’s warranted; in 2022, the average starting salary for MBA graduates was $115,000, more than 53% higher than the $75,000 average for people who only have a bachelor’s degree, according to Graduate Management Admission Council data. And graduates from top-ranked MBA programs can earn even more, with starting pay packages of $200,000 and up in 2022. READ MORE

As inflation chews up worker pay, top CEOs got 7.7% raise last year

For nearly two years, worker pay in the U.S. has fallen short of crushing increases in the cost of living. But a handful of the highest-paid CEOs have comfortably stayed ahead of inflation.

Average pay for top chief executives last year rose 7.7%, according to a report from Equilar, an executive compensation research firm. That raise comfortably beat out inflation, which was 6.4% in December. READ MORE

Highest paid chief executive officers in the United States in 2022

Bank of America CEO Brian Moynihan and David M. Solomon, CEO of the Wall Street giant Goldman Sachs make the list as Business Chief looks at the top 100 highest-paid CEOs in the United States. Here, CEOWORLD magazine takes a look at the top 100 highest-paid CEOs in the United States in 2022.

It won’t come as a surprise to anyone that the highest-paid chief executive officer on this year’s list is Peloton Interactive President & Chief Executive Officer Barry McCarthy, who was awarded over $168 million in 2022. Julie Sweet of Accenture, whose compensation totaled $33.7 million in 2022 and ranked 15th overall, was the highest-paid woman CEO in the study. READ MORE

How do you measure and reward executive performance in a volatile market?

Executive performance is crucial for the success of any organization, especially in a volatile market where uncertainty and disruption are the norm. But how do you measure and reward executive performance in a way that aligns with the strategic goals, values, and risk appetite of the organization, while also motivating and retaining top talent? In this article, we will explore some of the key principles and practices of effective executive compensation and benefits in a volatile market. READ MORE

Will wages outpace inflation for long? It depends on the job

Wages are now finally beating inflation, according to the latest quarterly data on wage growth. But, with a widely expected recession still looming, that might not last. That is, unless you work in a certain industry.

In the first three months of the year, median weekly earnings for full-time and salaried workers were 6.1% higher compared to the same period a year ago, outpacing the 5.8% increase in consumer prices during that period. And Friday’s jobs report showed that workers’ paychecks grew in April by 16 cents, or 0.5%, to $33.36 an hour on average. That was the biggest monthly increase since March 2022, though wage growth had gradually slowed since then. READ MORE

Penalties for excessive compensation in not for profit organizations

Not-for-profit organizations are subject to rules and regulations governing their compensation practices. If a not-for-profit organization pays excessive compensation to its executives or employees, it may face penalties from both the government and the public.

The penalties for excessive compensation in not-for-profits may include:

  1. Loss of Tax-Exempt Status: If the IRS determines that a not-for-profit organization has paid excessive compensation, it may revoke the organization's tax-exempt status. This can result in the organization having to pay taxes on its income, which can be a significant financial burden.

  2. Fines and Penalties: The IRS can also impose fines and penalties on not-for-profit organizations that pay excessive compensation. These penalties can be substantial and can include both monetary fines and other consequences, such as the revocation of the organization's tax-exempt status.

  3. Public Scrutiny: Not-for-profit organizations that pay excessive compensation may also face public scrutiny and backlash. This can damage the organization's reputation and make it more difficult to attract donors and volunteers.

To avoid penalties for excessive compensation, not-for-profit organizations should ensure that they are paying reasonable compensation to their executives and employees. They should also have clear policies and procedures in place for determining compensation, and they should regularly review and adjust their compensation practices to ensure compliance with applicable laws and regulations.

Who's getting laid off in America, by salary range

Usually in economic slowdowns, it’s low-income workers who get cut first, but the recent increase in unemployment insurance (UI) claims in the US has been more broad-based.

Looking at the Census’ Household Pulse Survey from March 29 to April 10 and comparing it to a week around the same time in 2022, the number of UI claims by Americans making more than $200,000 moved up by some 500%. During roughly the same period last year, 18,100 Americans at this salary level had applied for initial UI. Now that number has climbed to 113,800. READ MORE

Executive pay: balancing sustainability with profitability

As executive compensation soars back to pre-COVID-19 levels, and the gulf in pay between chief executives and employees expands, business leaders are under increasing pressure to design financial incentives in ways that reflect companies’ broader societal responsibilities while also creating long-term value for investors and other stakeholders. 

All too often, compensation plans have tended to encourage executives to pursue short-term profit maximization, often at the expense of environmental, social and governance (ESG) considerations. That is now changing: the proportion of S&P 500 companies embedding ESG goals into their executive bonus plans rose from 57% in 2021 to 70% last year, according to consultants SemlerBrossy.  READ MORE

Why ESG Ratings Have No Place in Executive Compensation

The ESG (environmental, social, and governance) investment framework is a much livelier topic than it really ought to be. It ought to be boring.

Institutional investors, who know an ill wind when they feel one, are clearly concerned that climate change and lax corporate governance will imperil the value of their holdings. The prospect of stranded assets and Enron-level scandal can have that effect. READ MORE

Moderna’s billionaire CEO reaped nearly $400 million last year. He also got a raise.

Stéphane Bancel, chief executive of Moderna, had a good year in 2022, exercising stock options that netted him nearly $393 million. The company decided his pay wasn’t good enough.

The Cambridge, Mass.-based biotech, known for its lifesaving coronavirus vaccine, raised his salary last year by 50 percent to $1.5 million and increased his target cash bonus, according to a March securities filing. Bancel, 50, says he is donating the proceeds of stock sales to charity. He owns stock worth at least $2.8 billion and, as of the end of last year, had additional stock-based compensation valued at $1.7 billion. READ MORE

New York minimum wage could hit $16 under Hochul deal, up to $17 in NYC

A deal to raise minimum wages in New York would keep the state near the top of the list of places with the highest base pay for low-paid workers, but the raise amount is disappointing some labor activists who had hoped for a bigger bump.

The minimum hourly wage would rise to $17 in New York City and some of its suburbs and $16 in the rest of the state by 2026 under an agreement between Gov. Kathy Hochul and legislative leaders. That's an increase from the current rate of $15 in the city and $14.20 upstate. READ MORE

CEO pay at large-cap companies grows 3.1 percent despite turbulent year

Pay increases for CEOs at large-cap companies grew at a slower rate of 3.1 percent between the 2022 and 2023 proxy filing periods, compared with growth of 13.2 percent the previous year, according to ISS Corporate Solutions.

The solutions provider, which examined 337 large-cap company proxy statements between October 1, 2022 and April 18, 2023, finds median pay for CEOs at S&P 500 companies stood at $14.3 mn over the period. READ MORE

In Lieu of Living Wage Boss Agrees to Let Employees Come in Baked as Fuck

Employees at a local insurance office were granted permission to arrive to work baked out of their goddamn gourds and reeking of that good shit in lieu of a raise in pay, sources ignoring the profit reports confirmed.

“We raked in stellar profits six quarters in a row. But, you know, with the economy the way it is we don’t think pay raises are in the company’s best ineterest, we have to make sure things stay liquid,” said Operations Manager Jamie Sopa. “And we’ve made several concessions for the sake of our employees. They’re allowed to park in the management spots, they can wear sneakers to the office, and if they want to get blazed while listening to Sleep in the parking lot before their shift, then we’ll happily ignore that they smell like a Phish concert and keep telling stories that go nowhere.” READ MORE

How pay transparency can help close wage gaps in the workplace

Pay transparency – corporate disclosure of existing employees’ pay, along with the inclusion of wage and salary data in publicly advertised job postings – can help meaningfully reduce enduring wage gaps, especially along racial and gender lines. Enacting salary disclosure laws can be an effective tool for policy-makers keen on reducing inequality. But inconsistent global adoption of pay transparency practices threatens to keep pay inequality deeply entrenched in the global workplace. READ MORE