Matters To Consider for the 2025 Annual Meeting and Reporting Season: Executive Compensation

Companies should consider their recent annual say-on-pay votes and best practices for disclosure when designing their 2025 compensation programs and communicating about those programs to shareholders. Companies should also review the latest say-on-pay trends, including overall 2024 say-on-pay results, factors driving say-on-pay failure (i.e., those say-on-pay votes that achieved less than 50% shareholder approval), say-on-golden-parachute results and results of equity plan proposals, as well as recent guidance from the proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis. READ MORE

Pay Ratios: CEO and C-Suite Compensation in the Russell 3000 and S&P 500

The CEO is consistently the highest-paid executive in the C-Suite, but how does CEO compensation compare to that of other executives? This report examines the ratio of CEO total compensation to that of chief financial officers (CFOs), chief legal officers (CLOs), chief operating officers (COOs), chief human resource officers (CHROs), chief marketing officers (CMOs), and named executive officers (NEOs) as a whole, across the S&P 500 and the Russell 3000. READ MORE

The Role of Rewards When Employees Perform Extra Work

More than 75% of employees are asked at least weekly to take on extra work beyond the tasks and/or hours spelled out in their job description, according to a new report from LiveCareerOpen in a new tab, a resume builder website. While the risk of burnout is real, there also is a range of positive outcomes for those who tackle additional responsibilities.

LiveCareer surveyed 1,160 U.S. workers in December 2024 who reported the benefits of additional work, including skill development (33%), financial rewards (32%), closer relationships with colleagues (31%) and opportunities for career advancement (31%). READ MORE

Meta Approves Executive Bonuses Up to 200 Percent After Laying Off 1 in 20 Workers

According to a new corporate filing, Meta just approved a plan that would almost triple potential bonuses for the company’s executive officers. The bonus range will jump from 75 percent of their base salary to 200 percent, according to the documents, which were reviewed by CNBCs. Though the new bonus scheme doesn’t apply to CEO Mark Zuckerberg, CBNC points out that the change to executive compensation comes only a week after Meta began to lay off 5 percent of its overall workforce—a process which Zuckerberg alleged would target the company’s poorest performers, but which also swept up high-performing staff in its net too. READ MORE

Demonstrating Alignment of CEO Pay and Performance

Realizable pay (“RP”) is composed of cash compensation paid (e.g., salary, actual bonus awards and payouts of cash-based long-term incentives) and the value of equity awards using the stock price at the end of the assessment period. RP assesses outcome-based compensation and has long been the “gold standard” for demonstrating shareholder aligned pay for performance. RP incorporates stock price performance, which is critical because the majority of executive pay opportunity is equity-based compensation. However, such analyses have generally not been extensively used and, if performed, are not typically disclosed in the proxy. This all changed with the SEC’s finalization of the Pay Versus Performance (PVP) rules, which were mandated under The Dodd-Frank Wall Street Reform and Consumer Protection Act. The PVP rules became effective for companies with fiscal years ending on or after December 16, 2022; after a 2-year phase-in period, companies are now required to compare the compensation actually paid (CAP) to the CEO and the average of the other NEOs to the company’s total shareholder return (TSR) and other financial measures over a 5-year period (3 years for Smaller Reporting Companies). READ MORE

Most U.S. Organizations Lack Pay Transparency Strategies

Even though pay transparency is becoming a requirement for organizations around the world, only 19% of U.S. companies actually have a pay transparency strategy in place, according to Mercer’s latest Global Pay Transparency Report. Open in a new tab

The report surveyed 1,144 organizations worldwide, including more than 300 in the U.S. Globally, 77% cited compliance as a key driver for having a pay transparency strategy, while 53% and 51%, respectively, stated it aligned with corporate values and increasing employee satisfaction. READ MORE

Washington justices press attorneys on meaning of ‘job applicant’ in pay transparency fight

The Washington Supreme Court is tasked with determining what exactly makes one a “job applicant” under a state pay transparency statute, as two job seekers implored the court to stick to the plain meaning during oral argument Thursday morning.

Washington amended its equal pay law in 2022 to require employers to disclose wage scale, salary range, and benefits information in all job postings starting in 2023. If a job applicant finds a posting that doesn’t comply with the requirements, they can either file a complaint with the Department of Labor and Industry or pursue a private right of action. In both cases, the applicant is entitled to statutory damages of $5,000. READ MORE

What Corporate Leaders Can Expect From Trump on Executive Pay

While some Trump-era policies may return, the corporate landscape has evolved significantly since 2020 — particularly in areas like ESG initiatives, shareholder activism and compensation transparency. The incoming administration faces different challenges than it did four years ago, including an entrenched proxy advisory system, established compensation disclosure requirements under Dodd-Frank and heightened investor expectations around executive pay transparency. 

Though wholesale regulatory changes appear unlikely in the short term, shifts in enforcement priorities and key personnel appointments could substantially impact how companies approach executive compensation. READ MORE

Crafting an Effective Proxy Statement: A Key Tool for Articulating Executive Compensation Practices

A well-crafted proxy statement serves as more than just a regulatory filing; it is a vital communication tool that provides transparency, builds trust, and fosters alignment between a company and its investors. For shareholders, particularly those invested in publicly traded companies, understanding how executive compensation is structured and justified is crucial for making informed decisions. The proxy statement, typically filed annually, outlines executive pay practices, governance matters, and other key corporate issues. It should present these elements clearly, ensuring shareholders feel confident that the company’s compensation policies align with long-term performance and their interests.

This article explores how companies can craft an effective proxy statement that not only fulfills regulatory requirements but also functions as a compelling communication piece for shareholders. READ MORE

5 compensation and benefits trends to buy into in 2025

Amid low unemployment levels and a growing skills gap, employers are retooling their compensation and benefits strategy to attract and retain workers. In 2025, compensation budgets are expected to remain above historical trends, and benefits will become even more personalized, experts say.  

Josh Bersin, CEO of human capital advisory firm The Josh Bersin Co., said companies will need to ask themselves what deal they offer to workers and how their employee experience compares in the battle for talent.  READ MORE

ISS and Glass Lewis Announce Compensation-Related Updates For 2025 Proxy Season

Recently, Institutional Shareholder Services (“ISS”) released updates to its voting policies for 2025, including new and updated responses to its Compensation Policies FAQs and new Value-Adjusted Burn Rate Benchmarks (based on company size and industry) in its Equity Compensation Plans FAQs. These updates follow the off-cycle update that ISS announced for its Compensation Policies FAQs this past October, which we reported on here. Similarly, Glass Lewis (“GL”) also recently released its annual Benchmark Policy Guidelines for 2025. Consistent with the last few years, this year’s updates by ISS and GL reflect incremental, rather than transformational, changes to their respective policies relating to compensation practices. READ MORE

15 Tips For Designing Competitive, Equitable Compensation Packages

In today’s competitive job market, employers that want to attract and retain top talent must design compensation packages that are appealing and fair across all levels of the company. However, these pay structures also need to align with organizational needs and budgets.

To help HR leaders and their teams strike this balance, the members of Forbes Human Resources Council share their top tips for designing equitable and competitive compensation packages. From researching market pricing and trends to exploring benefits beyond salary, these strategies can set your organization apart while fostering fairness and inclusivity. READ MORE

7 Remote Jobs That Pay $186,000+ In 2025

Did you read that right, $186,000? Yes, that precise figure is not a mistake. That's the average salary Americans say they need to earn to feel financially comfortable, per a recent poll conducted by Bankrate. The survey explored the sentiments of varying demographics of American workers, covering Gen Zers, to Gen Xers, to Black Americans, to Hispanics, to Westerners, to those making under $50,000 or $100,000 or more, and everyone in between. READ MORE

How to negotiate your salary in 2025

A majority, 56% of U.S. workers are looking for a new job or plan to in 2025, according to an October 2024 Resume Templates survey of 1,258 U.S. workers. Their reasons vary: 37% feel undervalued, another 37% feel burned out and 40% cite low pay.

If you, too, are hoping to get a pay bump in 2025 but not necessarily looking to leave your job, you can still try to negotiate for a higher salary where you currently work.  READ MORE