High salaries, poor performance: These were the most overpaid CEOs last year

When it comes to CEO salaries, no one topped Broadcom’s Hock Tan last year. A new study by the Wall Street Journal ranks Tan (and his $161.74 million pay package) as the highest among S&P 500 companies last year.

And while there are valid arguments to be made about excessive executive compensation and the growing pay gap between executives and their employees, it’s not hard to see why Tan was awarded that figure. In the past year, Broadcom shares have more than doubled. But what about those companies whose stock lost value last year? Are executives there still cleaning up, regardless? READ MORE

Banking Agencies Revive Incentive-Based Compensation Rules for Financial Institutions

The Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Federal Housing Finance Agency (FHFA) and the National Credit Union Administration (NCUA) recently re-proposed rules on incentive-based compensation arrangements at certain financial institutions with at least $1 billion in assets (Proposed Rule). Among other things, the Proposed Rule would subject certain compensation to recovery for at least seven years after vesting if a “senior executive officer” or “significant risk-taker” (based on their relative level of incentive compensation or ability to expose financial assets to risk) engaged in misconduct that resulted in significant financial or reputational harm to the institution or committed other specified bad acts. READ MORE

‘Reasonable compensation’ for Sub-S owners

You just gotta love the English language. We throw around a lot of words that can have different meanings. Take “reasonable” as an example. Webster’s dictionary says it means “much as is appropriate or fair; moderate; sensible.” The IRS says that means “what you would do to an unrelated third party.” (With regards to buying something, paying a fee for a service, etc.)

A little background on today’s topic. Owners of Sub-S corporations (which could be an LLC which has elected to be taxed as a Sub-S) are required by the IRS to pay themselves a “reasonable compensation.” Their reasoning is because Sub-S income is not subject to self-employment tax. READ MORE

You’re Fired: How to Pay Final Wages to Terminated Employees

Employers must have established payroll processes in place to ensure compliance with state laws regulating payment upon termination of employment, two industry experts said May 9.

Most states have laws requiring employers to pay employees within a certain time frame after their employment is terminated, said Kevin Valuet, Director of Payroll Training for PayrollOrg. However, most states make a distinction between voluntary and involuntary termination of employment, and different requirements apply for each. READ MORE

The Real Reason why Companies Offer Restricted Stock Units to Employees and how it Benefits Them

Job satisfaction and hefty compensation are considered the most basic factors that make an offer attractive for professionals. But instead of just paying higher salaries, companies have resorted to breaking the compensation into tax, variables, and stock components. One of the most popular instruments that most public companies in the United States offer their employees are “Restricted stock units (RSU)”. Back in 2000, only one-fifth of the public companies gave restricted stocks, but in 2023 the number has jumped significantly to 94%. Companies like Amazon, Apple, Uber, Verizon, Bank of America, Microsoft, and Starbucks are granting restricted stocks to their workforce. READ MORE

These Are the Top 15 Jobs With the Highest Entry-Level Pay

It's graduation season, and although hiring is cooling, it's still possible to find entry-level roles with six-figure median salaries for those right out of college or graduate school.

Fox Business looked at which jobs had the highest entry-level pay based on a Glassdoor analysis of salaries submitted between May 1, 2023, and April 30, 2024. Each job had at least 75 salaries provided by Glassdoor users. READ MORE

More than a Third of S&P 500 Companies Now Have Compensation Tied to Climate Goals: S&P Global

More than a third of companies in the S&P 500 have monetary incentives in place linked to company emissions reduction, although a lower proportion have climate-related compensation incentives for senior executives, and even fewer at the top executive ranks, according to a new study released by S&P Global.

The study, which included data from the S&P Global Sustainable1 Net-Zero Commitments Tracker dataset, as well as the S&P Global Corporate Sustainability Assessment (CSA), also found that less than half of large listed companies in the U.S. have set net zero targets, and that the companies’ climate goals focus primarily on Scope 1 and 2 emissions, with much lower ambitions on Scope 3 value chain emissions, which represents the majority of most companies’ carbon footprints. READ MORE

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