More than 80% of Companies Adopting ESG Metrics in Exec Compensation Plans

Companies globally are increasing the use of ESG factors in their executive compensation programs, with more than 80% of incentive plans now incorporating at least one ESG metric, and the integration of environmental metrics rising particularly rapidly, according to a new study released by professional services and solutions provider WTW.

For the study, WTW’s fourth annual Report on ESG Metrics in Executive Incentive Plans, WTW reviewed the public disclosures from over 1,100 listed companies across North America, Europe and Asia Pacific. READ MORE

Elon Musk's blocked $50B Tesla pay package is about more than corporate compensation

Elon Musk may be one of, if not the wealthiest person in the history of the human race, but in some ways, he's just like you and I. For instance, much like Musk, you and I also are likely not getting a corporate compensation package worth $50 billion anytime soon. But while you and I were (probably) not counting on such a generous payout in the first place, Musk very much was.  READ MORE

Elon Musk won’t get his $55 billion pay package after all

Elon Musk isn’t going to get that $55 billion pay package after all, a Delaware Chancery Court judge has ruled.

Tesla shareholders approved the package in 2018, which gave Musk incentive to hit specific milestones, including a market valuation of $650 billion, which was more than 10 times the valuation at the time. The trial hinged on a specific question: did Musk mislead the shareholders when he gave them the plan? READ MORE

OPM: Federal salaries won't be tied to private sector pay histories

The Office of Personnel Management issued a final rule Monday limiting the criteria on which federal agencies can set salaries for new or returning federal civilian employees.

Under the regulation, agencies may not use non-federal salary histories when establishing pay for employees in General Schedule, prevailing rate, Administrative Appeals Judge, Administrative Law Judge, Senior Executive Service and senior-level and scientific or professional pay systems. READ MORE

Average tech salaries decreased in 2023, according to a new Dice report. The company’s CEO says you shouldn’t worry

Dice’s annual Tech Salary Trends report released Tuesday found that in 2023, tech salaries stagnated and even slightly dipped by $155 to an average of $111,193. For comparison, from 2021 to 2022, average tech salaries grew by 2.3%.

Some of the occupations with the biggest statistically valid declines include among cloud architects/engineers (-15.8%), and product managers (-6.7%). On the flip side, other occupations saw significant salary growth, such as systems administrators (+11.2%), software developer (+6.5%), and program analyst/manager (+6.1%).  READ MORE

How Long Does It Take For Tech CEOs To Make Your Salary? Find Out Here

We all know that Elon Musk (currently the second richest in the world After Bernard Arnault) is very rich. In fact, Mr Arnault, Mr Musk, Jeff Bezos and others are richer than many countries on the planet. It would be interesting to know how long it would take a tech CEO earn your entire year's salary, tackle your entire student debt or pay off your entire mortgage. There is a website that will give you these exact numbers, as they apply to 15 tech moguls.

The company that has created the website says it uses data on salary, bonuses, earnings from equity and other forms of compensation. It is based on the 2019 SEC filings, so the latest wealth figures are expected to give you more heartburn. READ MORE

How to make green incentives pay

Hello from Miami. I’m here at the iConnections Global Alts conference to moderate a panel on impact investing.

And it is a good time to talk about impact because sustainable investing overall has had a difficult few months. Our colleagues on the climate team dug into the Morningstar numbers for sustainable investing in 2023. Climate-focused funds attracted $37.8bn of new investor money in 2023, compared with a record $151bn in 2021, they reported. Last year was the weakest for net inflows since 2019, when interest in green investments intensified. READ MORE

ADM postpones some executive bonuses amid accounting probe

Archer-Daniels-Midland Co will delay paying performance bonuses to some executives until its financial statements are completed and audited, according to a staff memo seen by Reuters.

The delay, detailed in a memo sent to staff on Thursday, comes days after ADM sidelined its chief financial officer and brought in outside lawyers to launch an investigation into accounting practices last week. READ MORE

North American companies continue to link executive pay programs to ESG measures

The adoption of environmental, social and governance measures in executive incentive plans continues to increase across markets, especially in North America, according to a new report by WTW.

The report, which reviewed public disclosures from more than 1,100 global companies, found metrics related to human capital remained the most popular across all ESG categories, used by 75 per cent of TSX 60 companies and 70 per cent of S&P 500 companies. READ MORE

A Road Map for Developing Your Global Pay Equity Strategy

Pay transparency legislation aimed in part at helping to improve pay equity continues to expand around the world. But organizations won’t achieve global pay equity through legal compliance alone. Developing a global pay equity strategy is also essential. Employers that create such a strategy are more likely to achieve pay equity and to enjoy resulting benefits such as the ability to attract and retain top talent, increased levels of employee engagement and trust, and more inclusive cultures. READ MORE

Why Compensation Cost of Sales Is a Metric That Deserves Your Attention

Now that it’s January, your 2024 sales compensation program has been rolled out and everything is in place for a successful sales year. As the year progresses, however, someone will eventually ask, “Is our compensation program competitive? Are we paying too much or not enough?” Often, there’s a rush to look at target pay levels when the problem lies in other areas. This is why leaders should measure and benchmark their compensation cost of sales (CCOS).  

CCOS is an important metric on your sales dashboard — both a leading and lagging indicator that, when properly understood and interpreted, can point toward useful action. It is also a useful measure that helps steer a broader conversation about salesforce investment beyond target pay levels.  READ MORE

Wayne LaPierre says he approved helicopter rides so NRA execs could avoid traffic while going to NASCAR races

National Rifle Association leader Wayne LaPierre testified Monday that he authorized thousands of dollars in helicopter rides so that executives of the gun rights group could avoid getting stuck in traffic while traveling to and from NASCAR races.

On his second day on the stand in his civil corruption trial, LaPierre, 74, was shown three invoices for helicopter services, totaling more than $16,000. He confirmed that he approved those flights in 2015 and 2016 and said helicopter trips were a “practice” at the time. READ MORE

‘Time to rein in the millionaire and billionaire CEOs’: Bernie Sanders, Senate Democrats take aim at companies paying top execs more than 50 times their typical worker's salary

Sen. Bernie Sanders’ quest to tackle corporate greed in America continues on.

The self-described democratic socialist has unveiled a new bill — alongside a group of Democratic lawmakers — which would bump taxes for companies that pay their top executives over 50 times more than their typical worker's salary. READ MORE

President Joe Biden distorts income tax rates for the richest Americans

In a recent speech touting his economic policies, President Joe Biden took aim at the tax rates of the wealthiest Americans.

During the president’s Jan. 25 stop in Superior, Wis., he said: "There are a thousand billionaires now, and you know what their average tax rate is? Eight percent."

Biden has used this figure before, but it’s inaccurate because it uses a hypothetical calculation and isn’t a reference to the current tax code. READ MORE