Several high-profile activist campaigns over the last few years have kept shareholder activism top of mind for board members. Individual activist investors and campaigns vary in nature — from constructive, low-profile dialogue to less cooperative and more combative approaches. Understanding how these influential external groups view executive compensation can help boards rethink the narrative around executive pay in the event of future activist involvement. While compensation design and outcomes are generally not the primary driver of activist campaigns, executive pay often serves as a means for activist shareholders to highlight perceived mismanagement or misalignment with shareholder interests in key areas. READ MORE
ESG-related compensation: What separate high-performing firms from the rest?
Six in 10 (60 per cent) companies around the world now apply environmental, social and governance (ESG) targets to share-based employee compensation – but most employers remain short-sighted, finds a new report.
Over eight in 10 (84 per cent) say they apply them to the management board.
The same percentage of companies tying pay to ESG targets was also reported in a previous study. READ MORE
CEO’s Compensation Packages Surge by Nearly 13%
Chief executives of S&P 500 companies saw their compensation packages surge by nearly 13% last year, significantly outpacing the wage increases of average workers amid rising inflation. According to data analyzed by Equilar for The Associated Press, the median CEO pay package rose to $16.3 million, marking a 12.6% increase. In contrast, private-sector workers’ wages and benefits grew by just 4.1% in 2023. At half of the companies surveyed, a median employee would need almost 200 years to match what their CEO earned in one year. READ MORE
Elon Musk’s compensation package case will haunt Tesla for years
I believe that Elon Musk’s compensation package will haunt Tesla for years as lawsuits are already piling up.
Everyone is pointing fingers at who they think is responsible for this situation. Here’s my take.
We are less than two weeks away from Tesla’s annual shareholders meeting during which we will know the results of the shareholder vote on Musk’s compensation package and incorporation move to Texas. READ MORE
3 Entry-Level Remote Jobs That Pay $100,000+ In 2024
The class of 2024 is waking up from graduation to realize they are in a financial black hole.
"The cost of college has steadily increased over the last 30 years," notes recent Forbes research into student loan debt statistics. "In that timeframe, tuition costs at public four-year colleges grew from $4,160 to $10,740 and from $19,360 to $38,070 at private non-profit institutions (adjusted for inflation). As costs have risen, so has the need for student loans and other forms of financial aid." READ MORE
Tesla stands by Musk pay after ISS urges shareholders to reject package
Tesla on Monday defended a proposal to ratify CEO Elon Musk's $56 billion pay package and said a new compensation would be costlier, days after a top proxy advisory firm recommended shareholders to vote against the proposal.
The electric-vehicle maker argued that his pay package - one of the biggest in corporate America - motivated Musk to create "tremendous value" for shareholders. READ MORE
10 Best Tech Jobs by Salary Growth in 2024
For years, jobs in the tech industry have served as lucrative career choices, and 2024’s offerings are no different.
Despite widespread layoffs recently, there is still a lot of demand, according to Splunk. The thriving nature of the industry means that those looking for new positions, whatever the reason, have a good chance of finding one within a few months. We’ve gathered the best based on their average salaries and growth potential. You might find something that fits your skill set well. READ MORE
Banking Agencies Re-Propose Rules on Incentive-Based Compensation
On May 6, the Federal Deposit Insurance Corp. (FDIC), Office of the Comptroller of the Currency (OCC), and Federal Housing Finance Agency (FHFA) issued a Notice of Proposed Rulemaking addressing incentive-based compensation arrangements (the Proposed Rule). The Proposed Rule is designed to implement Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). It is a re-proposal of the joint proposed rule issued in 2016 with the identical text, which is summarized in this article. However, the Proposed Rule has a new preamble and a request for comments, seeking feedback on several alternative provisions that could be included in a final rule. READ MORE
CEOs made nearly 200 times what their workers got paid last year
The typical compensation package for chief executives who run companies in the S&P 500 jumped nearly 13% last year, easily surpassing the gains for workers at a time when inflation was putting considerable pressure on Americans’ budgets.
The median pay package for CEOs rose to $16.3 million, up 12.6%, according to data analyzed for The Associated Press by Equilar. Meanwhile, wages and benefits netted by private-sector workers rose 4.1% through 2023. At half the companies in this year’s pay survey, it would take the worker at the middle of the company’s pay scale almost 200 years to make what their CEO did. READ MORE
The Relationship Between Wages & Inflation
Inflation and wages are kind of a chicken or egg issue.
Do higher prices cause higher wages or do higher wages cause higher prices?
I suppose it’s probably a little of both. READ MORE
California's $20 Fast Food Minimum Wage Law Is Already Having Disastrous Unintended Consequences
California now leads the nation in imposing dumb wage laws.
The state just raised the hourly minimum wage for fast food workers to $20.
Gov. Gavin Newsom said, "We saw the inequities….We had a responsibility to do more." READ MORE
Proxy advisor ISS urges Tesla shareholders to reject Elon Musk’s $56 billion compensation plan
ISS said the pay package, initially approved by shareholders in 2018, is not considered warranted. The opposition comes days after another prominent proxy adviser, Glass Lewis & Co., recommended investors vote down the Musk remuneration plan. READ MORE
Tesla reassures judge that move to Texas won’t affect Elon’s compensation case
Tesla has successfully reassured a Delaware judge that its attempted incorporation move to Texas won’t affect Elon Musk’s CEO compensation case.
In a new letter, Chancellor Kathaleen McCormick, the judge who canceled Elon Musk’s $55 billion compensation package after she concluded Tesla’s board misled investors, said that Tesla’s lawyers reassured her that the company won’t use its new shareholder vote on the compensation and incorporation move to Texas to circumvent the case. READ MORE
Elon Musk pushing boundaries of CEO compensation packages
Tesla CEO Elon Musk (TSLA) is once again pushing for a pay package worth $56 billion, which originally was struck down by the Delaware Chancery Court earlier this year. Many CEOs are following in Musk's footsteps as, according to the Wall Street Journal, the number of S&P 500 CEOs to receive compensation above $50 million has risen to 36 in a period from 2019 to 2023. READ MORE
New Minnesota law will require salary ranges in job postings
Minnesota employers will be required to include salary ranges in job postings — a requirement lawmakers say will help improve pay equity for potential employees.
Companies with 30 or more employees will be required to include the minimum and maximum annual salary or hourly range of compensation, as well as a description of all benefits and other compensation in their job postings. READ MORE
Microsoft under attack from government and tech rivals after ‘preventable’ hack ties executive pay to cyberthreats
Microsoft has come under fire recently from both the U.S. government and rival companies for its failure to stop a Chinese hack of its systems last summer. One change the tech giant is making in response: linking executive compensation more closely to cybersecurity. READ MORE
Boeing shareholders approve CEO’s compensation as company faces investigations, possible prosecution
Boeing shareholders on Friday approved CEO David Calhoun’s $32.8 million compensation and heard leaders explain what the troubled aircraft maker is doing to improve the quality and safety of its planes after a door plug blew off a Boeing 737 Max jetliner in January.
Calhoun said the company is finishing a 90-day plan for fixing its manufacturing problems — a report the Federal Aviation Administration demanded after the door-plug blowout. READ MORE
Want to fix the accounting talent shortage? Raise starting salaries, students say.
The NPAG is looking to address the shrinking pool of U.S. accounting professionals that CFOs and finance department recruiters have been grappling with as they seek out staff needed to close books, complete audits, and make sure the company’s financials comply with GAAP and other regulations. READ MORE
What Buttons Are Tech Companies Pushing to Maximize Their Pay Programs?
Notwithstanding a persistent string of layoffs in the technology sector over the past year, attracting the right tech talent continues to pose challenges for employers. According to the findings from WTW’s 2024 Tech Pay Actions Survey (see Figure 1), 33% of respondents said it was “difficult” to find qualified candidates to fill open positions for tech-related jobs. For comparison, just 11% of respondents categorized the current talent acquisition environment as difficult for non-tech jobs. READ MORE
College degrees earned in these states will net you a higher salary
The state where you earn your college degree has a significant impact on your future earnings, but to get the higher salaries you also have to pay more in tuition and expenses, a new study from Teach Simple finds.
Massachusetts has the highest median earnings, with graduates from institutions in the state making an average of $65,319 annually. The average annual cost of attending a school in Massachusetts is $26,268, the second highest tab in the country, and students graduate at a rate of 67 percent. READ MORE