On October 11, 2024, Institutional Shareholder Services (ISS) released a new FAQ regarding clawback policies as an update to its United States Executive Compensation Policies, which give insight into, among other things, ISS procedures for determining its say-on-pay (SOP) proposal recommendations. Note that companies without an SOP proxy proposal (e.g., emerging growth companies) should not be impacted by this new ISS guidance. READ MORE
Salary Transparency: Growth Slows, but Momentum Continues
Salary transparency is increasingly becoming a common feature in job postings, especially as more states pass legislation requiring it. But despite continued growth in salary transparency overall, some sectors and states remain more opaque than others when it comes to disclosing pay information. READ MORE
Paid sick time for pets? A New York City Council bill could soon allow it
A new bill making its way through New York City Council would take away at least one major stress for pet owners in the city.
The just-introduced legislation would allow people to use their own paid sick time to take care of their pets when necessary. Supporters believe the bill would amend a current law and help improve improve mental health for city residents with pets. READ MORE
How the Best Workplaces for Women go beyond fair pay to narrow the gender gap
The focus on pay equity has grown in recent years, with more companies announcing programs to close the gender gap.
But achieving true gender parity—equal representation of men and women at all organizational levels—is still a long way off. At least 50 years, according to a sobering “Women in the Workplace 2024” report from McKinsey and LeanIn.org. READ MORE
What the Mayfield ruling means for overtime exemptions
Navigating the complexities of the Fair Labor Standards Act is critical for employers, especially when it comes to determining which employees qualify as exempt from overtime. While many are familiar with “white-collar” exemptions covering executive, administrative and professional roles, misclassifications remain a significant risk.
The recent Mayfield v. U.S. Department of Labor ruling from the 5th U.S. Circuit Court of Appeals reaffirmed that both the salary and duties tests are required when classifying employees as exempt, reminding employers that exemption status isn’t determined solely by job title or pay level. READ MORE
4 remote jobs that can pay 6 figures—one can pay as much as $195,000 per year
Remote work continues to be popular among workers. Nearly a quarter, 22% say remote work flexibility is the most important benefit, according to Monster’s 2024 Work Watch Report.
Some industries lend themselves to this type of arrangement. “A lot of remote jobs are tech jobs” for example, says John Mullinix, head of growth marketing at Ladders. But remote jobs can be found in a wide range of fields — including opportunities “that are upwards of $130,000,” says Toni Frana, career expert at FlexJobs. READ MORE
CEO pay dropped in 2023—but it’s not clear why
For decades, chief executive pay has climbed precipitously, buttressed by generous stock awards and six-figure bonuses. Since 1978, CEO compensation has spiked by 1,085%, a far cry from the 24% bump in pay that the average worker has seen.
In 2023, however, overall CEO compensation—which includes salary, bonuses, stock awards, and stock options—actually dropped by nearly 20%, according to a recent analysis by the Economic Policy Institute (EPI). That means CEOs were only paid 290 times as much as the average worker, a sharp decline from previous years. (Just a year before, in 2022, CEOs received 360 times the pay of the average worker.) READ MORE
Are responses to failed say-on-pay votes consequential?
Are you ever surprised that more companies don’t fail their say-on-pay votes? Say on pay was adopted by the SEC under a Dodd-Frank mandate signed into law against the backdrop of the 2008 financial crisis. The mandate was enacted largely in reaction to the public’s railing against the runaway levels of compensation paid to some corporate executives despite poor performance by their companies, especially when those firms were viewed as contributors to the crisis itself. READ MORE
Double Taxation, IRS Audits of Deferred Compensation Payments May Arise from IRS Instructions for 2023 Forms W-2, 1040
Companies required to use “box 11” of Form W-2 in 2023 to report either payments of nonqualified deferred compensation (deferred compensation) or FICA taxation of unpaid deferred compensation may soon be challenged by employees angry about potential double taxation of deferred compensation. This double tax is created because the Form 1040 filing instructions for 2023 require deferred compensation payments reported in box 11 of Form W-2 to be reported on an employee’s Form 1040 as “wage” income subject to income tax and again as “additional income,” also subject to income tax.
This results in double taxation of deferred compensation payments, which the employee escapes only by ignoring the new Form 1040 filing instructions. READ MORE
How AI Is Transforming the Total Rewards Landscape
Artificial intelligence (AI) is no longer the scary monster hiding around the corner for organizations.
A recent surveyOpen in a new tab from employment and labor law firm Littler, which included more than 330 U.S. C-suite executives, found 66% of the respondents are using generative or predictive AI in HR functions, including to create HR-related materials (42%), recruit (30%) and source candidates (24%). READ MORE
What’s behind the widening gender wage gap in the US?
Just how much of a setback was the COVID-19 pandemic for U.S. working women?
Although women who lost or left their jobs at the height of the crisis have largely returned to the workforce, a recent finding points to the price many paid for stepping back: In 2023, the gender wage gap between men and women working full-time widened year-over-year for the first time in 20 years, according to an annual report from the U.S. Census Bureau. READ MORE
After Decades of Increases, CEO Pay Dipped in 2023
A big reason why leaders of publicly traded companies prioritize results that boost dividends for shareholders is that much of their own compensation is tied to continually rising stock prices. Yet despite Wall Street’s robust results over the past year, top U.S. CEOs pay decreased nearly 20 percent in 2023, a recent study reported. READ MORE
Cutting Partner Compensation Becomes Routine in Big Law
Even as top law firms have reached new revenue and profitability peaks this decade, not every partner is making more money from year to year.
These days, anywhere from 10% to 30% of partners within one firm may be moving down in compensation, according to law firm management consultants, and some firms are producing faster moves down, helping them pay their top performers. This is a departure from the more collegial days of partnerships, when it was unheard of to cut a partner's compensation, unless a firm sought their ouster, industry observers said. READ MORE
Female CFOs, CEOs at big companies outearn male counterparts
Women CEOs at S&P 500 companies will earn $16.5 million in median compensation compared with $15.6 million for top male executives for a 5.37% advantage, according to Conference Board data. Women CFOs at S&P 500 companies will earn on median $5.8 million, or 8.4% more than the $5.35 million compensation for men. READ MORE
Federal Contractors Should Prepare for 2025 Minimum Wage Hike as Legal Challenges Unfold
Federal contractors may need to be prepared to increase pay for employees working on, or in connection with, covered federal government contracts. The hourly minimum wage for employees performing work on federal contracts will rise from $17.20 to $17.75 on Jan. 1, 2025, the Department of Labor (DOL) has announced. The new minimum wage rate will apply in full to tipped and non-tipped employees alike, as well as to workers with disabilities.
Contracts entered into, renewed, or extended prior to Jan. 30, 2022, generally remain subject to the minimum wage rate under Executive Order 13658. The operative minimum wage for those contracts will increase from $12.90 to $13.30 per hour. READ MORE
Social Security Tax Limit Jumps 4.4% for 2025
The Social Security Administration (SSA) just announced two key 2025 adjustments: the Social Security COLA (cost of living adjustment) and the new Social Security tax limit.
While you’ve likely heard a lot about the COLA, did you know there's a cap on the amount of income subject to Social Security payroll tax? This ceiling, known as the Social Security tax limit or "wage cap," sets the maximum earnings that can be taxed to fund the Social Security program. READ MORE
The Next President Must Ensure Americans Can Earn a Living Wage | Opinion
As the U.S. presidential election nears, Kamala Harris is touting her plans to establish an "opportunity economy" for all, while Donald Trump promises an elixir of tariffs and tax cuts to create "the biggest, greatest, and strongest middle class in the history of our country."
Yet one thing is conspicuously absent from both candidates' economic agendas: any mention of the need to ensure that every American can earn a living wage. READ MORE
California's $20 fast food minimum wage didn't lead to major job losses, study finds
A study from the University of California Berkeley’s Institute for Research on Labor and Employment found that a California state law raised the minimum wage for fast food workers did not lead to large job loses or price hikes.
AB 1228 went into effect in the Golden State April 1, setting a $20 per hour minimum wage for those working at fast food restaurants with less than 60 locations nationwide and restaurants located inside airports, stadiums and convention centers. The law further gave employees stronger protections and the ability to bargain as a sector. READ MORE
More pay for in-office work? Salary report reveals new reality for hiring managers
Going back to the office could have a meaningful perk — more pay.
For jobs that can be done remotely, 78% of technology managers are willing to increase starting salaries for new hires to work in the office full or part-time, according to the 2025 Salary Guide from HR consulting firm Robert Half. READ MORE
Compensation planning for 2025: Five trends that matter
Compensation planning decisions have become increasingly complex, especially considering shifts in the way we work, governance and pay equity, the skills needed for future growth, and the desire to reward top performers. We have identified five trends in the labor market that we believe will shape an employer’s response for 2025: labor costs, pay transparency, the minimum salary test, AI use in hiring and retention strategy. Below, we explore what those trends are and how your company can respond to address them. READ MORE