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Over the last several years, staff and partner compensation has risen dramatically.
Last year, INSIDE Public Accounting’s director of survey operations, Chelsea Summers, said, “Staff are getting paid 15.7% more than in 2020, while partner compensation increased by 29.2% over that time. Staff are beginning to catch up to the big gains the partners made at the beginning of COVID.” READ MORE
A recent rule will significantly raise the Fair Labor Standards Act’s (“FLSA”) salary thresholds for the highly compensated employee (HCE) exemption from overtime pay, posing challenges for employers. The new rule increases the annual compensation requirement for HCE’s from $107,432 to $132,964 on July 1, and to $151,164 on January 1, 2025. These thresholds will update every three years starting July 1, 2027. READ MORE
The U.S. labor market has loosened in recent months, adjusting from a pandemic period of unusually high resignations, job hopping and wage gains.
While price pressures have eased this year, “the labor market likewise has seen substantial rebalancing and nominal wage growth moderating as a result — even while keeping up with inflation,” Federal Reserve Governor Adriana Kugler said Tuesday in a speech. READ MORE
A dozen states have enacted pay transparency laws, which require employers to be more open about wages and benefits. Those laws will require employers to disclose wages in new job postings, while some of the laws will also bar employers from asking a job candidate about their salary history.
Currently, California, Colorado, Connecticut, Hawaii, Maryland, Nevada, and Washington State have statewide laws in effect, with New Jersey and Ohio having local laws in place that require pay transparency. New York has both local and statewide laws, while Illinois, Minnesota, and Washington, D.C. have passed laws that have yet to go into effect. READ MORE
New research has found that employers throughout the UK and the US have become more conservative with salary budgets this year.
Nearly half (49%) of UK employers reported lower salary budgets for the 2024 cycle compared to the previous year.
It’s a similar story in the US, where 46% of employers also reported lower budgets. READ MORE
You have to earn more than $1 million annually to be among the top 1% of earners in the richest U.S. states and Washington, D.C., a new GOBankingRates study reveals.
In D.C., you’re in the top 1% if you make $1,250,029 or more — the highest threshold in the U.S. That’s followed by five states where you also need to come in over the $1 million mark to be a top earner: Connecticut, Massachusetts, California, Washington and New Jersey. READ MORE
Many companies are feeling the strain of current economic conditions, with increasing distress among corporate executives. This is leading boards and executives to carefully consider their current long-term incentive programs, which carry significantly lower value today than just a few years ago. Another concern among many established players is new business ventures being formed by well-financed investors who are taking advantage of that increasing distress. READ MORE
The Federal Trade Commission’s (FTC) ban on noncompetition covenants (“noncompetes”) could significantly impact the design and administration of employee benefits and executive compensation arrangements. READ MORE
Much of corporate America responded swiftly in May 2020 when George Floyd was killed by a Minneapolis police officer, sparking widespread national outrage and a reexamination of racism in American life. In addition to speaking out about the murder, many employers launched broad strategies to increase workforce diversity through efforts to hire, promote and better train diverse employees.
Many Fortune 500 companies—including Best Buy, Starbucks, Chipotle, Target, Johnson & Johnson and others—also boosted their focus on accountability among senior leaders by linking executive pay to DEI metrics, such as the retention rate of diverse employees and the inclusivity rate of training offered. READ MORE
The pay gulf between blue-chip chief executives in the UK and US widened even further last year, new figures show, as a debate rages in the City over London-listed firms’ ability to attract and retain top talent.
Median pay for FTSE 100 CEOs was £4.1m last year, up just 0.5 per cent or roughly £20,000 from 2022, according to analysis by Willis Towers Watson for the Financial Times.
Meanwhile, data from proxy adviser Institutional Shareholder Services (ISS) shows average CEO pay in the US rose at its fastest pace in 14 years in 2023, with S&P 500 bosses paid a median of nearly $16m (£12.6m). READ MORE
Americans are fed up with the current state of tipping culture—and many workers who rely on tips are ready to scrap them altogether.
That’s according to a new survey from the HR software company Paylocity, conducted by The Harris Poll earlier this month. For the survey, 2,000 respondents (including 133 tipped employees) were asked about their attitudes around various workplace issues, with some surprising results. READ MORE
A federal judge in Texas has hit pause on a rule that would effectively raise wages for workers on federally funded construction projects, nine months after the rule first went into effect. READ MORE
Landing a place at business school could see you earn more than $70,000 straight after graduation, according to a new survey from the Graduate Management Admission Council (GMAC).
Several Masters degree types help students earn significantly more than that, while if you’re a more experienced candidate and choose to enroll in an MBA you could earn six figures in your first role post-graduation, the study also revealed. READ MORE
Nonprofit organizations with highly compensated employees or executives about to retire and collect a large payout may be subject to tax on what the Internal Revenue Service (IRS) calls “excess executive compensation.” If subject to this tax, the organization will need to comply with additional requirements to report and pay the amount due.
In general, the excess executive compensation tax applies to domestic organizations exempt from income taxes under IRC Section 501(a) (Form 990 filers), farmers’ cooperatives, public utility companies, states, municipalities, and political organizations. These are referred to as Applicable Tax-Exempt Organizations or ATEOs. READ MORE
CEOs of smaller tech and financial firms are surprisingly outperforming their counterparts at industry giants in terms of compensation, according to a new study by C-Suite Comp, a leading data analytics firm specialising in executive pay.
This finding, based on an analysis of nearly 4,000 publicly traded US companies, challenges the traditional notion that leadership at the helm of the largest corporations translates to the highest compensation packages. READ MORE
The Supreme Court’s decision to side with Students for Fair Admission in Students for Fair Admissions v. Harvard, [1] which struck down the use of “affirmative action” in college admissions, caused concern among compensation committee members, compensation consultants and the executives and managers incentivized to enhance diversity, equity, and inclusion (DE&I) at their employers about the risk of litigation and activism associated with corporate DE&I programs and metrics.
While the decision only relates to the educational sector, corporate DE&I programs could be affected in several ways. READ MORE
Redbox's parent company hasn't paid its employees in over a week amid financial woes that ultimately resulted in Chapter 11 bankruptcy.
Chicken Soup for the Soul Entertainment filed for bankruptcy protection on Friday, and Redbox Entertainment filed the following day, according to online records. Chicken Soup for the Soul Entertainment completed a $370 million deal to acquire Redbox Entertainment in 2022. READ MORE
I have long taught my students that corporate governance worldwide is a joke. There are no term limits for directors. Their selection reinforces an old boys’ club. CEOs shouldn’t sit on boards (they’re just hired hands). Directors are free to serve on far too many boards for anyone’s good. And of course there are the excesses of executive compensation.
In their fiduciary duty to shareholders, directors’ main responsibilities are: risk management, selecting the CEO, getting CEO incentives right and monitoring CEO performance, including implementation of the company’s strategy. READ MORE
The share price of The Kroger Co. (NYSE:KR) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 27th of June. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement. READ MORE
The U.S. Supreme Court on Monday agreed to decide how difficult it should be for employers to prove in court that their workers qualify for exemptions from overtime pay and other legal protections granted by U.S. wage laws.
The justices granted a petition by grocery distributor EMD Sales Inc, opens new tab for review of a 4th U.S. Circuit Court of Appeals ruling that imposed a higher bar on the company to show that sales representatives were exempt from overtime pay than any other appeals court has in a similar case. READ MORE