New SEC Disclosure Rules on Pay for Performance

by Matt Skrinjar 28. May 2015 13:27
Last month, the SEC issued a proposal for new rules related to executive compensation and pay for performance. The proposed guidelines serve as amendments to section 953(a) of Dodd-Frank and will require companies to disclose the compensation paid to executives alongside the company’s total shareholder return. The information will be provided in the form of an additional table in a given company’s annual proxy statement. The pay component will include total compensation for the CEO, as well as an average of the remaining top executives for whom compensation disclosure requirements already exist. Total compensation is already part of the summary compensation table found in a typical annual proxy, but the new guidelines will require that “total” be displayed a bit differently. In particular, equity compensation will be measured as the value of those stock or option awards that have vested in a given period rather than the grant-date values found in the summary compensation table. Also, any increases to pension or retirement plan values will be excluded from total compensation if they do not apply to services in the given period. [More]

Metrics for Cost-of-Living Analysis

by Marillyn Tefft, Senior Researcher 5. May 2015 14:36
Cost of living is frequently a key decision metric for opening and relocating business units. It is common for management to ask relocation and HR professionals to compare the company’s locations to the US National Average cost of living as a benchmark in analysis. The Relocation Assessor databases contain data for over 6,000 US locations of all sizes, which are used to establish this important benchmark. Since many companies are located in larger cities, it is useful to consider other averages in benchmark comparisons. Housing costs (both rental and home ownership), a key component of cost-of-living differentials between locations, are significantly higher in large cities. Using the cloud-based Relocation Assessor, we develop two additional benchmarks below: a US Large City Average and a US Large City Average which excludes New York City (NYC) and San Francisco (SF). The following cities are included: Atlanta, Boston, Chicago, Dallas, Los Angeles, New York, Miami, Philadelphia, San Francisco, and Washington, DC. [More]

No More Nonprofit Status for the NFL – What Will Change?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 30. April 2015 12:53
A few days ago, the National Football League (NFL) announced that it will be relinquishing its nonprofit status, because “the owners have decided to eliminate the distraction associated with misunderstanding of the league office's status,” according to Robert McNair, chairman of the league finance committee. What will actually be the impact of this change? [More]

Factors Affecting Nonprofit Executive Compensation

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 20. April 2015 12:30
Because of changes in the nonprofit sector in the last few decades, researchers Peter Frumkin, PhD, and Elizabeth K. Keating, CPA, PhD, looked at the relationship between compensation levels and certain characteristics of organizations. Their article, entitled "What Drives Nonprofit Executive Compensation?," is available at the Nonprofit Quarterly and should be of interest to ERI’s Nonprofit Comparables Assessor subscribers and those interested in nonprofit executive compensation. [More]

Employers Eyeing Health Care Benefits in 2015

by ERI Salary Surveys 2. April 2015 09:11
As employers across all industries aim to draw in and retain top performers in 2015, providing an attractive health care plan continues to be a crucial aspect of benefits management. At the same time, employers are also facing new challenges mandated by legislation while trying to keep a lid on the cost growth of benefits. Benchmarking health plan costs and practices with other employers in the external marketplace is the first step in evaluating the effectiveness of current strategies or potential changes. [More]