Top-earning CEO compensations have been under the scrutiny of the public ever since they were revealed, stunning people. The top 5 highest-paid CEOs of 2023 don’t draw hefty salaries as they are tax-inefficient and rather grease the wheels of stock awards and other incentives for the entirety of the compensation. Often rewarded for their crucial contributions to the success of the company, the top-earning chief executive officers in the US are a diverse group dedicated to a stringent regime of expansion and growth. READ MORE
Lawmakers to introduce guardrails on failed bank exec compensation
Lawmakers are gearing up to introduce legislation to recover compensation from executives of failed banks. Punchbowl News Financial Services Reporter Brendan Pedersen breaks down the proposal. Pedersen also discusses a new disclosure from Atlanta Fed President Raphael Bostic about his trading activity shortly before a 2022 FOMC meeting. READ MORE
Putting together an executive compensation package
Your company’s compensation philosophy, process, and bands determine how most of your hires are compensated. Executive hires, however, are a little different. You’re often dealing with heated competition for a small pool of talent. Competitive compensation packages generally need to be more bespoke, and the challenge is putting together a competitive offer while also balancing the cost and consistency with existing leadership team compensation. READ MORE
Total Employer Compensation Costs Rose 1.4% in March
Employers spent more on employees' overall compensation in March, according to figures released today, although momentum may be starting to slow as inflation continues to dip.
According to the latest Employer Costs for Employee Compensation report, released June 16 by the U.S. Bureau of Labor Statistics (BLS), employers spent 1.4 percent more on wages and benefits in March 2023 compared to December 2022. Total employer compensation costs for private-industry workers averaged $40.79 per hour worked. Wages and salaries averaged $28.76 per hour worked, accounting for 70.5 percent of employer costs, while benefits costs averaged $12.02 per hour worked, accounting for the remaining 29.5 percent, according to the report. READ MORE
US Senate panel to consider bill targeting failed bank executive pay
The U.S. Senate Banking Committee will consider a bill Wednesday that would allow regulators to claw back compensation for executives at failed banks. READ MORE
'Clawing back' executive compensation: companies listed on the NYSE and NASDAQ have until December 1 to adopt a compensation recovery policy
Companies listed on the New York Stock Exchange (NYSE) and Nasdaq Stock Market (Nasdaq) have until December 1 to adopt compliant clawback policies now that the SEC has approved listing standards the exchanges proposed. The SEC adopted clawback rules last year instructing securities exchanges to propose the standards. The standards require exchange-listed companies to develop and implement policies to recover erroneously awarded incentive-based compensation received by executive officers. READ MORE
How HR can make the most of working with a compensation consultant
Among the many tasks CHROs often face, helping the company’s board of directors shine before shareholders can be one challenging area, especially as it relates to your investors’ “say on pay” vote for executive compensation packages. Because, ultimately, if shareholders don’t approve the compensation strategy, it can give the board, and HR, a black eye.
Take Netflix, for example. Its board of directors encountered an embarrassing situation as shareholders withheld their support during the “say on pay” vote at the company’s annual shareholders meeting last week. Fortunately for Netflix and other public companies, such a vote is advisory only and not binding. READ MORE
ChatGPT is not ready to take on employee salary benchmarking
ChatGPT, the AI technology that's set off an artificial intelligence gold rush, is not yet ready to determine that companies are extending the right salaries to attract and retain talent.
We know this because we tested it. When asked "What salary should I offer a software engineer in the U.S. with five years experience?" ChatGPT came back with $100,000 to $120,000 a year, and maybe more than $150,000 a year in high-cost cities such as San Francisco, New York, and Seattle. READ MORE
9 best practices to improve your pay equity now
Ever wonder what’s driving the pay equity strategies of other companies?
Well, Felicia Cummings and Nicole Corona, HR leaders with Health Care Services Corp., wanted to know and informally polled attendees at their WorldatWork conference session this week, Pay Equity: Taking on the Elephant in the Room. READ MORE
Planned Parenthood execs among highest-earning in nonprofit sector pay, new report finds
Planned Parenthood executives are among the highest-paid in the U.S. in the not-for-profit sector, surpassing the average salary for nonprofit CEOs, according to a new report.
American Life League's STOPP International, an organization dedicated to serving as a watchdog on Planned Parenthood, recently released a report titled "The STOPP International 2023 Report on Planned Parenthood CEO Compensation," which offers analysis of how much money executives affiliated with the nonprofit are raking in. READ MORE
The Ultimate Guide to Equity Compensation
What drives companies to offer equity compensation? We've heard the speech ... it fosters employee motivation and performance, it helps with employee retention, it's an alignment of interests, it increases employee loyalty, etc. While all these are true, one big reason that gets less coverage is taxes. Equity compensation has a direct effect on employees' financial planning, which is why it's important that employees understand not only the tax implications but also how to exercise their stock and how to evaluate their options before accepting. READ MORE
Reasonable Compensation Under ERISA: Thoughts on Two Recent Cases
Two recent court decisions bring into focus two seldom-asked questions about the reasonable compensation requirement under ERISA. When must an ERISA plan’s service provider compensation be reasonable? And why shouldn’t a plan fiduciary be able to receive reasonable compensation from the plan even if the fiduciary had a hand in determining the amount of that compensation? The reasoning and holdings in these cases, if followed by other courts, could fundamentally alter the familiar rules on reasonable compensation. READ MORE
Does a $100,000 Annual Salary Mean You’re Rich?
In the 21st century, many people in the workforce are asking themselves how far their money will really go. A $100,000 annual salary may have meant a lot more even just 10 years ago than it does in today’s economy. READ MORE
How your social media posts actually reveal your salary
What you post shows what you make.
Researchers out of London’s Queen Mary University were able to successfully analyze 2.6 million social media posts and accurately assess the financial background of those who shared the messages. READ MORE
70% of Employees Have Discussed Personal Salary With Co-Workers
Salary transparency, an issue that has taken political and legal strides in the workplace, is now making its way into conversations between co-workers. The frequency of these conversations has risen alongside the increase in negotiations in the hiring process, and laws mandating companies provide salary ranges in new job ads.
The efficacy of these salary transparency conversations is up for debate, but according to a survey from invoicing solutions provider Skynova of just over 1,000 full-time employees, these interactions are taking place at a presumably unprecedented pace. Seventy percent of surveyed employees said they have taken part in conversations in which they shared how much money they made with their co-workers. READ MORE
How pay transparency laws affect small businesses
Eight states have adopted pay transparency laws, including California and New York, with several more considering legislation. Much of the buzz around these laws has been regarding large corporations and their employees, but how do small businesses fit into the picture? Here’s what you need to know. READ MORE
Wage hikes may have been a key driver of inflation. They may now be fueling mass layoffs
Central bank officials around the world have said taming inflation is their top priority, but rising prices have turned out to be stickier than originally expected.
The U.S. economy saw a pickup in inflation that began in 2021 amid pandemic-induced supply chain issues. But the current inflation story seems to be more about services than demand constraints. READ MORE
Finding the Right Compensation for Temporary Assignments
Temporary assignments, or the assignment of duties to an employee outside their regular scope on a short-term basis, often come with an increase in direct compensation.
But how should that amount be determined? READ MORE
Pay transparency cuts turnover risk — except for Gen Z
The study results come as new laws requiring companies to disclose salaries when hiring job candidates have been enacted across many states. As of Jan. 1, California and Washington became the latest to require pay ranges to be disclosed with job postings, CFO Dive previously reported. The new regulations and the resulting corporate policies are part of a broader push for pay equity and it is also shifting the balance of power in salary negotiations. READ MORE
5 negotiation tips to maximize your salary (even when hiring managers want to pay less)
When applying for a job, there are lots of variables that impact your decision-making: the location, flexible working, and day-to-day responsibilities. But ultimately, salary is always one of the biggest deciding factors.
Too often, employers will dictate lower salaries in a bid to save money. This is one likely reason why employee turnover is so high today. According to Pew, 63% of workers who quit their jobs do so because of low pay. READ MORE