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Elon Musk almost certainly makes too much money as Tesla's CEO, but that's not the main reason a Delaware judge voided his pay package this week.
Why it matters: CEOs can breathe easy — their oft-criticized outsized pay packages are likely safe. READ MORE
Some employers ask applicants about how much they made at a prior job in order to establish their compensation for the new position. A number of states have recently adopted legislation that prohibits or limits the ability of employers to use an applicant’s pay history for purposes of setting the future hire’s compensation. These measures are based on the argument that if an applicant was discriminated against at a prior job, using that pay as a basis to set the new job’s compensation perpetuates that discrimination.
On Monday, the Biden administration announced new proposed regulations that would apply this prohibition to federal contractors and subcontractors. The proposal was included in a set of measures intended to commemorate the passage of the Lilly Ledbetter Fair Pay Act 15 years ago. Contractors would be prohibited from either asking about or using pay history when setting employee compensation. READ MORE
Many employees are struggling to pay their bills and the search for higher compensation is driving them to look for new roles. A new report by Achievers Workforce Institute, found that almost three-quarters of employees say they either struggle to make ends meet or must budget carefully in order to meet their needs. As living costs continue to increase and salaries see little change, compensation is playing a higher role in the search for new employment.
Sixty-five percent of employees say they have one foot out the door and 2 in 5 employees say they will actively look for a new job in 2024. Historically, the opportunity for career progression was the most common factor behind switching jobs. But in 2024, twice as many employees say they will look for a new role with the hopes of receiving better compensation. READ MORE
Several years ago, California clarified that equity-based compensation is considered includable remuneration, with a few notable exceptions. The National Council on Compensation Insurance (NCCI), which governs 35 other states, enacted similar regulatory and administrative changes effective January 1, 2024. This will impact workers’ compensation premiums for companies that use equity-based compensation to attract and retain employees in a competitive recruiting environment. READ MORE
A decision by a Delaware judge to throw out Elon Musk's $56 billion Tesla (TSLA) pay package is a threat to the wealth of the world’s richest man. It also could alter the way CEO compensation is decided at companies across America.
"It’s a big deal," said Cornell University visiting lecturer Brian Dunn, who noted this was the first case ever to overturn a board’s decision on compensation. READ MORE
The Employment Cost Index—the Fed’s key metric for wage growth that accounts for labor composition—slowed to the lowest level since June 2021, according to the Bureau of Labor Statistics on Wednesday.
The overall index eased to 0.9% in the fourth quarter on a seasonally adjusted basis, down from 1.1% in the previous quarter. That is equivalent to a 4.2% increase on a year-ago basis, down slightly from 4.3% previously. READ MORE
Last year, many tech professionals saw their salaries level off. Did that trend impact their bonuses?
According to Dice’s latest Tech Salary Report, 39 percent of tech professionals received a bonus in 2023, roughly consistent with 2022 (when 38 percent received one). The average tech professional’s bonus hit $15,011, up from $13,794 in 2022. READ MORE
The salary you earn can impact all aspects of your personal finances. A raise could spell the difference between being able to rent a larger place to live, affording a car, and other such things that can lend to a better quality of life.
In a recent Monster.com survey, 81% of workers say their current wage has not kept up with the rising cost of living. So if you're eager to see your salary go up, that's understandable. READ MORE
A pair of congressional Democrats on Tuesday introduced legislation that would provide federal employees with an average pay raise of 7.4% next year.
The Federal Adjustment of Income Rates Act, introduced by Rep. Gerry Connolly, D-Va., in the House and Sen. Brian Schatz, D-Hawaii, in the Senate, would provide federal workers with a 4.0% across-the-board increase in basic pay next year, as well as an average increase of 3.4% to locality pay. The measure has 59 cosponsors—all Democrats—in the House. READ MORE
With all the layoffs in the news we're seeing, there's always the question: Why don't the highly paid executives take a pay cut? Couldn't they trim their massive pay packages and save some jobs?
In my more than 40 years in business, including being the vice president of human resources for Microsoft, I've seen more than a few layoffs. This observation is a fair one. The executives in charge never seem to pay a price for the pain they cause, and here are several reasons. READ MORE
Compensation costs for civilian workers increased 0.9%, seasonally adjusted, for the 3-month
period ending in December 2023, according to a U.S. Bureau of Labor Statistics report posted Wednesday (Jan. 31).
Wages and salaries also rose 0.9% and benefit costs increased 0.7% from September 2023, the report noted. Inflation-adjusted wages and salaries increased 0.9% for the 12 months ending December 2023. Inflation-adjusted benefit costs in the private sector increased 0.2% over that same period. READ MORE
Elon Musk was dealt a major financial blow on Tuesday when a Delaware state court judge voided his $56 billion executive compensation package from Tesla.
The ramifications of the historic ruling started to emerge Thursday, when Musk said Tesla shareholders will vote on whether to change the state where the company is incorporated from Delaware Texas. READ MORE
Grocery employees at a pair of Florida supermarkets got underpaid by $901,625 by management that also committed child labor violations, the U.S. Department of Labor announced.
Labor said 75 employees at Sarasota’s La Primavera Supermarket & Restaurant and Fort Pierce’s La Primavera Grocery Store will get that money, which averages $12,021.67 per worker. READ MORE
Striking the right compensation balance that allows a private company to measure up when competing with peers for leadership talent can be difficult. The data, after all, isn’t public, and most headlines focus on CEO compensation at the largest public companies in the country, hardly a reference point for those operating in the middle market.
For that reason, every year, Chief Executive Research collects and compiles CEO and senior executive compensation data at more than 1,600 private companies in the U.S. and presents it across various peer groups to help you better inform and align your pay strategy. Here are the key highlights of Chief Executive Group’s 2023–24 CEO & Senior Executive Compensation Report for Private Companies. READ MORE
Public companies must abide by strict rules when granting stock options to their top executives, including pricing them where the company’s shares are trading on the day they are granted and disclosing them swiftly.
Private companies planning to go public face some of the same requirements, but have more leeway in pricing their stock options — since there is no publicly traded price — and more time to disclose them. READ MORE
On January 30, 2024, the Federal Acquisition Regulatory Council (FAR Council) issued a Proposed Rule, “Pay Equity and Transparency in Federal Contracting.” READ MORE
In recognition of the 15th anniversary of the Lilly Ledbetter Fair Pay Act, the Biden administration released on Monday, January 29th, a Notice of Proposed Rule Making (NPRM) that would prohibit federal contractors from using job applicant’s prior salary history when setting pay and would require federal contractors to post the expected salary range in its job postings. READ MORE
Which tech hubs pay tech professionals the most? While older hubs such as Silicon Valley and New York City are famous for shelling out sky-high salaries for specialized technology skills, the burgeoning tech scenes in other cities can likewise translate into significant paychecks.
According to Dice’s latest Tech Salary Report, tech salary growth slowed in 2023, dipping slightly to $111,193 (compared to an average salary of $111,348 in 2022). Tech professionals with five or fewer years of experience, along with talent working in major tech hubs such as Silicon Valley, Seattle and Boston felt this salary stagnation the most, while other regions enjoyed an increase in compensation. READ MORE
Everything's bigger in Texas, as the saying goes. Elon Musk hopes that applies to his compensation package as well.
After a judge in Delaware voided Elon Musk's $56 billion pay plan from Tesla late Tuesday, its billionaire chief executive is considering moving the automaker's incorporation to the Lone Star state, according to his posts on X. READ MORE
I think Elon Musk deserved his $55 billion Tesla CEO compensation plan, and I voted for him to get it, but it doesn’t mean he should get it.
I would probably vote for it again. Hear me out.
There’s a lot of confusion among the reactions to the judge’s decision to rescind Elon’s $55 billion CEO compensation plan from Tesla. READ MORE