As issues like gender pay equity and pay transparency grow in prominence, a number of companies are beginning to rethink how they describe their approach to setting pay. In our view, these new forces will eventually compel companies to rethink and rewrite their compensation philosophies.
Published: August 2018
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Creating broad salary bands is a common practice throughout much of Asia, but a growing number of technology firms are now developing narrower, more aggressive salary ranges to keep pace with the market for in-demand jobs. We explain when you should think about breaking up your salary bands, how to develop narrower ranges and questions you should ask your compensation and HR teams in the process.
LTI awards are typically the largest component of pay, and can therefore have the greatest impact on decision making for global management. Yet the process of determining eligibility, award size and performance measures of LTI grants can be complex and challenging to navigate.
The 2018 proxy season saw a drop in proxy advisor and shareholder support for Say-on-Pay and an increase in non-proxy advisor compliant equity share plans. We explain the factors behind proxy season trends and what those involved in executive compensation can do to prepare in the off season.
Published: July 2018
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While a number of investors still look to the proxy advisory firms for guidance on director overboarding, an increasing number now apply their own limits. Investors that do not follow proxy advisor recommendations have often adopted their own approach to evaluating board commitments as part of an overall trend we’re observing where investors are focusing on board composition and efficacy.
The SEC’s recent enforcement action against a large, US-based company for failure to properly disclosed executive perquisites is a good reminder to all issuers of the circumstances under which detailed disclosure is required.
This is our last CEO pay ratio update for the year so you can arm yourself with the knowledge you need as you start to prepare for the 2019 proxy season.
A sneak peek at Aon’s Global Salary Increase Survey for 2018/2019, which covers nearly 130 countries around the globe, shows that 2018 salary increases worldwide were higher than 2017 inflation. As a result, employees saw an improvement in their purchasing power.
Life sciences companies headquartered in Europe have long used less equity compensation than their US peers. However, as more European companies list on US stock exchanges, and at earlier stages in their development cycles, a middle ground is emerging. In this article, we explore how US-listed European biopharma companies may encourage increased overhang and burn rates in Europe.
The SEC recently amended its definition of smaller reporting companies (SRCs), which could pave the way for nearly a thousand additional companies to take advantage of reduced compensation disclosure requirements. However, it may not be wise for every qualified company to scale back their disclosures, particularly if they have active investors who have expressed concerns via Say-on-Pay votes in the past.
Are you looking for some ways to reduce the stress of your next executive compensation planning cycle? Follow our summertime executive compensation checklist to discover three important tasks you can take care of now to make your Q3 and Q4 far less hectic.
Published: June 2018
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Cyber security is among companies’ primary concerns today with no company seemingly immune to widespread breaches with long-lasting effects. Given these startling statistics, it’s not surprising that more organizations are hiring a dedicated cyber security function as opposed to having it covered by a traditional IT role.
It’s more important than ever to devise creative and effective compensation strategies to attract and retain this generation of talent.
The first year of CEO pay ratio disclosures are in for most public companies. Our latest article includes several key findings for the technology and life sciences sectors that will be helpful as companies think about how this new data could be used by stakeholders in the future.
During annual performance cycles, compensation professionals spend a lot of time thinking about the size of the merit pool and who gets how much of an increase. However, less time is spent on the factors that go into how the pool is delivered. We delve into five strategies you can use to get more from your merit budget.
Published: May 2018
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Compensation planning in India requires extensive knowledge of local market practices given the many unique rewards terms and structures found in the country. Following the tips we provide in this article will help you set out on a path toward developing well-understood, tax efficient, legally compliant and competitive pay packages in India.
A competitive talent landscape has elevated the need for the CHRO to focus on total rewards. As such, it’s not a surprise that median compensation for CHROs continues to increase.
To understand what skills are hot in the IT market, compensation professionals need to dig deeper than the traditional benchmark data sources.
Our latest quarterly trends survey shows the use of retention bonuses in key global technology markets has fallen in the past two years. Our article explores the reasons behind this trend.
One of the major differences among public and private companies is the quantum of pay for executives. Compensation professionals at private companies are continuously challenged to attract and retain executives when their ability to pay competitively vs. public companies is constrained by typically lower long-term incentive (LTI) opportunities.
Our latest quarterly trends survey shows the use of retention bonuses in key global life sciences markets continues to rise over the past five years. Our article explores the reasons behind this trend.
In spite of Brexit, the London pay premium for technology sector talent continues to accelerate, which is why our latest data from the UK underscores the need to constantly examine and reevaluate regional pay differences.
We recently met with 200-plus HR and compensation leaders in Silicon Valley to discuss the difficulties of hiring and retention in today’s fierce talent environment. As everyone in the room agreed, paying top dollar helps, but there are many other ways to become a top-talent destination without breaking the bank. In this article, we present some successful non-monetary strategies companies can adopt right now to strengthen their employee value proposition.
With a shortage of workers possessing very specialized clinical and business infrastructure skills, life sciences companies often struggle to attract and retain this evasive talent. But when someone possessing these rare “hot skills” is found, companies often find themselves paying a large base salary premium to acquire them. Here, we go over the top five skills that fit in this category.
Published: April 2018
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In today’s super-charged job market, technology companies are engaged in a frantic battle to attract and retain people who possess game-changing skills. And while a large number of companies still don’t believe in paying special premiums for these “hot skills”, among those that do, the five hot skills listed in this article currently command the largest base salary premiums.
One of the earliest decisions when bringing in a new CEO, whether it’s an internal promotion or an external hire, is what the initial pay program should be. There are several factors that the board of directors should take into consideration, but using external benchmarks to create a competitive pay package (without overpaying) is a good starting point.
Using Aon’s Corporate and Governance Pro’s (CG Pro) new CEO Pay Ratio report, we took a look at what’s being reported at a select sample of 531 companies, which span several industries.
With so much of a salesperson’s compensation delivered through variable, performance-based pay, sales leaders need to continually monitor pay-for-performance mechanisms to ensure they remain fair, motivating and in-tune with business needs. However, we often rely too heavily on data-driven assessments to measure plan performance. Sometimes asking the right qualitative questions to the right people can make a huge difference.
Technological advances, coupled with new pay equity laws, give employees access to compensation information they never had before. In the emerging era of pay transparency, there are four steps companies must take to both address inequities and engage employees in creating a shared understanding of fair pay.
There are a lot of variables that go into a good sales compensation plan. Aligning the plan with your corporate sales goals and the desired behavior required of the sales role is the key.