Here's the Income and Net Worth You Need to Reach the Top 50% of American Households

Every three years, the Federal Reserve publishes a financial snapshot of the American population with its Survey of Consumer Finances (SCF). The report explores income, net worth, asset ownership, and debt burden across households in different economic and demographic categories.

The most recent SCF was conducted in 2022. American households reported an average annual income of $141,900 and an average net worth of $1 million. READ MORE

Microsoft is tying executive pay to security performance — so if it gets hacked, no bonuses for anyone

In a bold move addressing some major cybersecurity concerns that have plagued the company in recent months, Microsoft has linked executive compensation to the company’s security performance.

The strategic manoeuvre comes after a series of high-profile attacks affecting the company, such as those by China’s Storm-0558 and Russia’s Midnight Blizzard.

The revelation arrives days after Microsoft CEO Satya Nadella confirmed that the company’s renewed commitment would see it “putting security above all else.” READ MORE

Is giving Elon Musk a $56 billion compensation package—the most in history—the ‘fair’ thing to do?

Over the past couple of weeks, Tesla shareholders have been casting their ballots in one of the odder shareholder votes in corporate history: a vote to reinstate a massive $56 billion compensation package (the biggest in history) for Elon Musk that was put in place back in 2018 but was then thrown out by a Delaware judge in January. What makes the vote—the results of which will be finalized at Tesla’s annual meeting in June—so unusual is that it’s effectively asking shareholders to pay Musk many billions of dollars in stock options for work that has already been done.  READ MORE

US financial regulators restart work on long-delayed compensation rules

A trio of U.S. financial regulators have resumed work on a long-delayed rule-writing project to make executive compensation plans at financial firms more sensitive to risk.

The Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and Federal Housing Finance Agency jointly proposed the rule, which would bar incentive-based plans that do not account for risks or allow pay to be clawed back or forfeited, the agencies said. READ MORE

The average Wall Street bonus dipped 2% last year, to $176,500

Last year wasn’t the most lucrative for Wall Street bankers, but their bonus payouts still easily trounced US median household income.

The average Wall Street bonus for 2023 was $176,500, according to estimates that will be released Tuesday morning by New York State Comptroller Thomas DiNapoli. That’s down 2% from the $180,000 recorded in 2022. Both those averages were well below the $240,000 paid out in 2021. READ MORE

Should You Provide a Pay Bump for a Lateral Job Change?

When workers consider the pros and cons of making a lateral move within their organization (or at a different employer), there’s no lack of information available to help them in this process. A simple Google search can offer a variety of articlesOpen in a new tab and resourcesOpen in a new tab.

From the angle of the employer, however, there are much fewer insights to help compensation professionals suss out the potential ramifications. READ MORE

The Salary That Singles Need To Live Comfortably in 100 Major US Cities

A comfortable living may look different for everyone, but it typically means you can cover your basic expenditures and still have enough money for leisure, savings and even investing opportunities. 

This is easier for couples who often have two incomes, but when you’re a single person, the salary you need to live comfortably may actually have to be higher. Where you live also plays a role. For instance, you can get by on less than $65,000 in St. Louis, Missouri, but in many California cities, you need between $100,000 and $200,000 just to live comfortably! READ MORE

“Dollars and Sense” – Understanding the DOL’s New Salary Requirements for FLSA-Exempt Employees

On Tuesday, April 23, 2024, the U.S. Department of Labor (“DOL”) published the final version of a rule originally proposed in September 2023, raising the salary threshold for the Fair Labor Standards Act’s (“FLSA”) exemption for executive, administrative, professional, and computer employees and the total annual compensation level for the highly compensated employee exemption. The final rule also provides for periodic, automatic increases going forward. So, what should employers know about the final rule, and how can they stay compliant with this shifting landscape? READ MORE

Ex-members of Congress gripe about $174K salary, cost of living in DC: ‘It’s very difficult’

Former and outgoing members of Congress from both parties agree that one of the biggest problems with the job is that they don’t make enough money, despite a six-figure salary — even as they acknowledge the Americans they represent don’t want to hear about it.

“If I go back to my district, where the average salary in some places is $32,000, and I say, ‘I don’t make enough,’ when I make $174,000, they would go ballistic,” former Rep. Ken Buck (R-Colo.) told the New York Times in a video interview published Tuesday. “I’d be out of office in a heartbeat.” READ MORE

CEO pay soars among S&P companies

After modest gains the previous year, the pay packages for CEOs at large U.S. public companies took off again in 2023, according to new research from ISS-Corporate.

In a preliminary analysis of executive compensation trends for S&P 500 companies, the proxy advisory firm found that median CEO pay rose by 9.2% to US$15.7 million for the latest filing period, up sharply from the 3.1% gain reported in the previous year. READ MORE

DOL Increases Compensation Threshold for Exempt Employees

Starting July 1, 2024, employers must satisfy a higher salary threshold in order to consider employees as exempt from Fair Labor Standards Act (FLSA) overtime rules. Following proposed rulemaking in August 2023, the U.S. Department of Labor (DOL) finalized a rule on April 23, 2024, setting the standard salary level for the “white collar” exemptions under the FLSA at $844/week as of July 1, 2024 (up from the current $684/week). The weekly salary requirement for white collar exempt employees will then increase to $1,128/week on January 1, 2025. This represents an almost 65% increase in the minimum exempt salary threshold by January 1. It is important to note that paying the minimum salary alone does not establish that an employee is properly classified as exempt. Rather, white collar exempt employees must also satisfy the relevant “duties test” under the FLSA, the content of which remains unchanged by the final rule. READ MORE

An Early Look at CEO Pay Trends From Proxy Season 2024

The 2024 proxy season is in full swing, as public companies are in the process of submitting their proxy statements (DEF14A) to the Securities and Exchange Commission (SEC) ahead of annual shareholder meetings. The proxy statement features detailed information on pressing matters related to executive compensation and corporate governance. This analysis focuses on 2024 proxy statements submitted by 163 Equilar 500 companies (the 500 largest U.S. public companies based on revenue) through March 15, 2024 and offers early trends in executive compensation and Pay Versus Performance (PvP) disclosures. READ MORE

Bay Area tech giants reveal absurd CEO pay packages

Meta, Netflix and other Bay Area tech giants recently participated in the once-a-year tradition of disclosing how much they’re paying their chief executive officers. The numbers are, as usual, way detached from most people’s real lives.

Ted Sarandos, co-CEO of Netflix, received almost $50 million in total compensation from the Los Gatos-based streaming company in 2023, per a Thursday filing. Such executives’ pay packages are complex and often lean heavily on stock grants and awards, but they give a window into the extreme wealth of the Bay Area’s richest executives. The average full-time American worker’s annual salary is about $60,000, according to U.S. Bureau of Labor Statistics.  READ MORE

US Department of Labor Announces Final Rule Increasing Salary Thresholds for Overtime Exemptions

On 23 April 2024, the US Department of Labor (DOL) announced a Final Rule raising the minimum salary and annual compensation thresholds to qualify for the executive, administrative, or professional (White Collar) exemptions from overtime under the Fair Labor Standards Act (FLSA). The Final Rule also increased the salary requirements for the highly compensated employee exemption (HCE Exemption). Under the Final Rule, an initial increase in salary thresholds will take effect on 1 July 2024, and a full increase to the thresholds takes effect on 1 January 2025. Further, the Final Rule introduces changes in the methodologies used to calculate and periodically update these salary thresholds to reflect current earnings data, which employers can expect to be applied every three years. READ MORE

Am I entitled to overtime pay? Everything you need to know about the new salary rules

Getting a salaried job is great until you realize your bosses may now believe they own your soul and don’t need to pay overtime for it. You are always on the clock in their minds. Thankfully, a final rule announced on Tuesday by the U.S. Department of Labor (DOL) is working to change that for millions of salaried workers.

The rule amends the Fair Labor Standards Act section 13(a)(1). Under these new guidelines, lower-paid salary workers who work more than 40 hours a week will receive overtime protections. Say hello to time and a half and possibly even double time. READ MORE

This is the salary it takes to be considered rich in every state

What does it take to be considered rich in America? It depends a lot on where you live.

The richest of the rich live in Washington, D.C., where it takes a salary of $719,000 to land in the top 5% of earners. That’s according to a recent analysis from GoBankingRates, which looks at the average household income of the top 5% of earners in each state, based on the latest data available from the 2022 American Community Survey. READ MORE