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Nonqualified deferred compensation (NQDC) retirement plans are becoming more popular than ever in response to ongoing labor challenges.
Many companies offer NQDC plans as a retirement benefit for executive-level employees because IRS contribution limits make 401(k) plans inadequate on their own for many high earners. NQDC plans allow these high-earning employees to set aside more of their income to receive at a later date while also deferring the income tax on those earnings. READ MORE
Without an overarching strategy, early-stage companies tend to make decisions around salaries and job titles as and when they’re needed. Just like many early-stage decisions, this makes sense short term, but builds up a level of “compensation debt” that will eventually need to be unwound—and that’s harder to do later down the line.
Below is a straightforward process for building a simple, consistent, equitable compensation strategy that even relatively early-stage companies can adopt. READ MORE
CNBC anchor Rick Santelli gushed over a January jobs report that he described as a “WHOPPER” that blew away expectations and featured a “HUGE jump” in average hourly wages.
On Friday morning, the Bureau of Labor Statistics released a January jobs report that saw 353,000 jobs added, well above expectations READ MORE
Almost 4 in 10 Americans say they feel “financially unhealthy,” as prices remain high after a year of record-breaking inflation. However, how much you think you need to get financially well may depend more on what year you were born than how much is sitting in your bank account.
Gen Z says they require an average salary of $171,633 to feel financially healthy — the highest income compared to older generations, like baby boomers at $78,317 — according to a survey from personal finance company Personal Capital and retirement plan provider Empower, conducted by The Harris Poll. READ MORE
Tech salaries have leveled off—and tech professionals aren’t happy about it, according to Dice’s latest Tech Salary Report. In 2022, 30 percent of tech professionals reported that they were either very dissatisfied or somewhat dissatisfied with their salaries; in 2023, that percentage increased to 35 percent.
Some reasons for that unhappiness are obvious. Although certain specialized skills saw a notable increase in average compensation last year (especially skills related to cloud and data infrastructure/analytics), significantly more tech professionals (12 percent) reported that their salaries have gone down over the past 12 months; In 2022, only 6 percent reported a decreased salary. READ MORE
Becoming a Certified Public Accountant (CPA) is not just a career choice; it’s a pathway to a wide range of financial and professional benefits. With a salary spectrum that spans from $45,000 to $300,750, as highlighted by Robert Half, the CPA credential is a significant lever for accountants with a CPA license. Opportunities for CPAs are available across various sectors and positions, including private corporations, public accounting firms, and government agencies. With experience and expertise, a CPA can progress to high-ranking positions like a Chief Financial Officer or a top-tier tax consultant. READ MORE
The dollar is not equal in all cities. In Morristown, Tennessee, $100 is worth $118. In San Francisco, it’s $83.
To understand what life looks like for people with the same salaries who live in different parts of the country, Fast Company spoke with four women in four very different regions to ask about how they’re doing financially. For context, we pulled cost-of-living numbers from GOBankingRates, circa June 2023. READ MORE
As Super Bowl LVIII looms on the horizon, the financial disparity between its two starting quarterbacks couldn't be more pronounced. Brock Purdy, the San Francisco 49ers' signal-caller, will face off against Patrick Mahomes of the Kansas City Chiefs at Allegiant Stadium in Las Vegas on Sunday, February 11. The contrast in their earnings is a stark reminder of the NFL's salary spectrum-from the league's Cinderella story to its highest echelons of quarterback compensation. READ MORE
The Office of Personnel Management on Friday set a deadline of October for agencies to comply with new federal regulations barring the federal government from using a job applicant’s salary history when setting their pay.
Earlier this week, OPM finalized regulations barring agencies from soliciting or otherwise relying on past compensation during the hiring and pay-setting process in most cases. The Biden administration also proposed similar rules this week that would ban the practice for federal contractors and subcontractors, though those would not take effect until at least April. READ MORE
An increasing number of people advocate being open about salaries as a way to fix pay iniquities and encourage employees to ask for more compensation, but there are many cultural and professional taboos around the practice. The Onion looks at the pros and cons of salary transparency. READ MORE
The largest compensation package in history was recently voided by a Delaware Court of Chancery judge, sending a message to corporate board members that it is their fiduciary duty to negotiate in good faith on behalf of investors. A key question for board compensation committees to ask, “Is it necessary to overpay to retain a company CEO?”
Judge Kathaleen McCormick determined that Tesla CEO Elon Musk’s 2018 10-year pay agreement that would have awarded him 12 tranches of Tesla stock options that would vest if the company’s market capitalization grew by $50 billion and revenue targets were reached was “unfair” to investors. The company’s market cap has grown from $50 billion in 2018 to more than $586 billion today (it briefly topped $1 trillion in 2021), which would mean Musk’s options would have vested. READ MORE
Two surveys from one consulting company have shed interesting light on the differing fortunes of executive pay and employee benefits.
WTW – which provides global risk advisory, insurance brokerage and consulting solutions – found that 81% of companies include ESG in their executive incentive plans, with climate rising rapidly through the ranks when it comes to compensation. READ MORE
You want your lawyer to be on your side. The more passionate they are, the better. If they’re so passionate they can’t control their emotions, though, you might be in trouble. That’s exactly what happened to Elon Musk in a recent court case. Todd Maron, former General Counsel for Tesla and the billionaire’s former divorce attorney, broke down crying over his love for Elon during a deposition about how much the billionaire got paid. READ MORE
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