The Power of Pay-for-Performance Sales Compensation Plans

With the current economic concerns and disruptive business environment, organizations are unsure about their growth prospects (and from where that growth will come). Worries about tariffs and a potential recession are leading them to revisit their sales compensation plans.

In response to rising costs and potential declines in spending, businesses are increasingly implementing pay-for-performance strategies. The Alexander Group’s recent sales compensation trends surveyOpen in a new tab found 71% of polled organizations are emphasizing this approach in their comp plans. READ MORE

Workers in these states just got a pay raise

The corks have been popped, the calendar pages turned and a day that promised fresh starts also brought with it some pay bumps for millions of Americans.

Hourly minimum wages increased in 21 states on Wednesday, as part of ongoing efforts to have pay keep up with the rising cost of living or to meet milestones such as a $15-an-hour minimum wage. The increases — which range from 18 cents to $1.75 (hello, Delaware) — are expected to affect more than 9.2 million workers, raising their pay by a combined $5.7 billion, according to the Economic Policy Institute. READ MORE

Income protection: Are your executives fully covered for disability?

One of the ways organizations invest in attracting and retaining top executive talent is through comprehensive compensation packages. However, many companies overlook a critical gap in their executive benefits strategy: adequate income protection through disability coverage. While standard group long-term disability coverage may appear sufficient on paper, it often falls short of providing true lifestyle protection for high-earning executives. READ MORE

Here’s the Minimum Salary Required To Be Considered Upper-Middle Class in 2025

The middle class is a big group. At the top is the upper-middle class, and determining if you fit into this category can be confusing.

But how much money do you need to make to be considered upper-middle class, especially in 2025? GOBankingRates broke down the numbers and what you need to do to reach that status in the new year. READ MORE

Enduring high-performing companies take a best-fit executive pay approach

High-performing organizations tend to set the bar for all others. They perform well financially, attract and retain the best talent and exhibit best practices within the business as well as in their communities. Another way they stand out is through their executive pay programs.

We recently explored how enduring high-performing companies pay their executives. Our findings supported what we first discovered a decade ago: These companies follow a path less traveled. READ MORE

KPMG International report finds growing link between sustainability and executive pay

A new report from KPMG International has revealed that a growing number of companies are linking sustainability targets to executive pay.

375 large, publicly listed companies across 15 countries were studied for the report, ‘Incentivizing long-term value creation: Linking sustainability metrics to board members’ pay’, examining the adoption of sustainability in boardroom pay. READ MORE

The era of job hopping for a better salary may be over — crushing the dreams of disloyal Gen Z workers

Gen Z can no longer hop to the top.

The days of jumping from role to role to boost salaries are over in the current job market, Fortune reports.

According to new data from the US Bureau of Labor Statistics and the Federal Reserve Bank of Atlanta, workers who remained in their current jobs earned a 4.6% salary bump in January and February while those who changed roles during the same time frame saw a 4.8% increase. READ MORE

Executive Compensation For ESG Metrics: A Step In The Right Direction But Still A Long Way To Go

In today's corporate world, there's a lot of buzz about linking executive pay to Environmental, Social, and Governance (ESG) metrics. One specialist recently trumpeted: “Companies have crossed the Rubicon in integrating environmental, social and governance performance.” The idea does indeed sound great: reward leaders for steering companies toward sustainable and ethical practices. But are these ESG incentives genuine, or are they just for show?

A recent study we published, entitled "All Hat and No Cattle? ESG Incentives in Executive Compensation," attempts to answer this very question. The research delves into executive compensation data from 674 executives across 73 major European firms between 2013 and 2020. The findings are quite revealing. READ MORE

Skyrocketing CEO pay can lead to huge corporate culture problems and whistleblowing employees

Americans have long been dissatisfied with growing pay gaps between CEOs and employees. Now, researchers say that this tension can generate internal discontent and even increase the likelihood of corporate whistleblowing. 

CEO-employee pay disparities erode employee loyalty and lead to greater worker “willingness” to inform on their companies, according to a recent study from researchers at the University of Texas at Dallas. In companies with more significant pay disparities—especially when individuals believed they could find work elsewhere—employees were significantly more likely to report on their companies. The driving force behind that is perceived unfairness, according to Dr. Riki Takeuchi, a professor at the University of Texas and an author of the study.  READ MORE

Analyzing executive pay-performance alignment

There is a broad consensus among compensation consulting firms and proxy advisors that the conventional approach to US executive pay – providing a high percent of pay at risk withtargetpaysetatthe50th percentile – achieves the three basic objectives of executive pay. The high percent of pay at risk ensures a strong incentive to increase shareholder value, while setting target pay at the 50th percentile retains key talent (because target pay doesn’t drop below the 50th percentile) and limits shareholder cost (because target pay doesn’t rise above the 50th percentile). READ MORE

Women unlikely to reach parity with men for 134 years

Women worldwide are far from attaining equal status in the C-suite, holding only about 10% of the most powerful roles such as CEO, CFO and COO, JPMorgan Chase said.

Although the share of women directors among Standard & Poor’s 500 companies rose last year to a record 34%, progress in U.S. board representation slowed in recent years, JPMorgan Chase said. READ MORE

5 strategies to negotiate a higher salary in your mid-career years

Mid-career is a crucial phase of every individual’s career journey, considering it is the point where you have accumulated a significant amount of experience and expertise and are aiming for greater responsibilities. However, many professionals hesitate to negotiate their salary, fearing rejection. READ MORE

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

Employees accept 25% pay cut to work from home

Since the fading of the COVID-19 pandemic, a growing number of U.S. employers have coaxed and nudged workers from their homes back to the office.

The average office occupancy rate in the 10 largest U.S. cities increased to 51.5% this month from less than 20% in early 2022, according to swipe data from Kastle Systems. 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