Performance-Based Compensation Articles
The Watson Company is a leader in performance optimization products and services. Established in 1983, The Watson Company offers highly-successful programs designed to attract, retain, and motivate people in a cost-effective manner, linking pay to performance in an effort to improve overall quality and results.
Previous Posts
- In support of Voting "NO" on the bailout
- A Congressman who voted "Yes" on the bailout bill
- Key Portions of the New Bailout Plan
- Possible Executive Pay Limits in Bailout Plan - AP...
- Jack Welch Changes stance on Executive pay
- Executive Pay and Performance - What does it reall...
- The Paycheck Fairness Act (proposed) provides for ...
- The Equal Pay Act - Are you ready for change?
- Paycheck Fairness Act Proposed Compensatory Damage...
- The Fair Pay Act (proposed)
Archives
Monday, September 29, 2008
Key Portions of the New Bailout Plan
While we are still assessing the actual legislation, here are some key takeaways:EXECUTIVE PAY. Restrictions would be imposed on the compensation received by executives whose companies sell some of their bad assets through the government's purchase program. There would be tax restrictions on executive pay over $500,000 and limits on so-called "golden parachutes" for executives who leave the companies getting government bailouts.
OVERSIGHT. The Treasury will be required to provide details of its purchases of bad assets within two days of the transaction. Oversight boards would be created including one with members selected by Democratic and Republican leaders in the House and Senate and one that will include top government officials.
TAXPAYER PROTECTION. Taxpayers would be given ownership stakes in companies whose bad assets are purchased and after five years if the government is facing a loss in the program then the president will be required to submit a plan on how to recoup a portion of the losses from the companies that participated in the program.
Labels: bailout plan, compensation, Equal Pay Act, executive compensation, executive pay, McCain, performance management
Thursday, September 25, 2008
Jack Welch Changes stance on Executive pay
Day to Day, September 25, 2008Jack Welch, who ran General Electric for 20 years and was one of the nation's highest paid CEOs, says limits on executive pay are now warranted.
"I think without question once the federal government has to step in to bail out the private enterprise, you've got to modify the private enterprise pay packages," he tells host Alex Chadwick.
In 2002, Welch told the NewsHour with Jim Lehrer that anyone who wanted to cap executive pay would be the "dumbest guy in town" because it challenges the free enterprise system.
In 1999, Fortune magazine called Welch the "manager of the century."
"Times and men's fortunes change," says Welch. "And we now are in a time of unprecedented difficulties." Welch says the "misalignment between bonuses and shareowners and the public" calls for changing the rules on executive pay.
Labels: executive compensation, executive pay, McCain, Obama, performance management
Executive Pay and Performance - What does it really mean?
With increased Congressional and public attention on executive pay, does your executve compensation have strategic compensation objectives that identify your company's compensation issues and how they should be addressed, both now and in the future? If you are an investor looking at investing, there is a lot more public information available regarding exec pay so you can make a more informed decision.There are a lot of factors in executive pay that the public largely remains unaware of such as Change in Control agreements, perquisites, and tax deferred income issues. We will examine each of these over the next few days.
Labels: executive compensation, executive pay, McCain, Obama, performance management
The Paycheck Fairness Act (proposed) provides for multiple location comparision.
Under the EPA, in order to determine that there is wage discrimination, the wage comparison must be made between employees working at the same "establishment". Some courts have interpreted this to mean that wages paid in different facilities or offices of the same employer cannot be compared even if the employer is paying workers different salaries for the same work. The PFA clarifies that a comparison need not be between employees in the same physical place of business.Labels: compensation, Equal Pay Act, McCain, Obama, pay, performance management, women's pay
Tuesday, September 23, 2008The Equal Pay Act - Are you ready for change?
During this election year, there has been much rhetoric regarding the Equal Pay Act. Both major Presidential candidates are addressing this subject, and there are two different interpretations of the proposed changes.We will try to clear up a few questions in a non-partisan fashion. First, there are two proposed Acts in Congress that are the real issue. The first Act proposed is the Paycheck Fairness Act , sponsored by Sen. Clinton (D-NY) and Representative Delauro, (D-CT). The second Act is the Fair Pay Act, sponsored by Sen. Harkin (D-Iowa) and Delegate Norton (D-DC), which has similar wording as the Paycheck Fairness Act but a different focus.
What is the Equal Pay Act (EPA) of 1963? In short, the EPA prohibits wage discrimination between men and women in the same establishment who are performing under similar working conditions. The EPA is part of the Fair Labor Standards Act (FLSA) of 1938, as amended, and which is administered and enforced by the EEOC.
What has been proposed? Basically, the Paycheck Fairness Act is written to modify current laws against wage discrimination and requires the federal government to be more proactive in preventing such discrimination. Similarly, the Fair Pay Act is written to ensure equal pay to those with comparable jobs.
What does it all mean? We will post several more articles breaking down some of the specifics of each provision of the current and proposed Acts.
The Watson Company has over 20 years of experience in employee compensation and performance management and has worked with over 500 organizations. We will be glad to work with you to ensure you comply with existing laws, and prepare for pending legislation changes. We are not attorneys, and this information should not be used to make legal defenses or opinions. We are consultants who will work with your organization to provide programs and services that are compliant with Federal Regulations.
www.watsoncompany.com
Labels: compensation, Equal Pay Act, McCain, Obama, women's pay
Wednesday, September 17, 2008The Fair Pay Act (proposed)
What has been proposed? The Fair Pay Act is written to ensure equal pay to those with comparable jobs, and modifies the existing Equal Pay Act of 1963.What is the EPA of 1963? In short, the EPA prohibits sex-based wage discrimination between men and women in the same establishment who are performing under similar working conditions. The EPA is part of the Fair Labor Standards Act of 1938, as amended (FLSA), and which is administered and enforced by the EEOC.
The Fair Pay Act, as proposed, could:
1. Provide for punitive and compensatory damages similar to provisions under the Civil Rights Act.
3. Provide for Equal Pay for Equivalent Jobs.
4. New Required Employer Record Keeping.
What does it all mean? We will post several more blogs breaking down some of the specifics of each provision of the current and proposed Acts.
The Watson Company has over 20 years of experience in employee compensation and performance management and has worked with over 500 organizations and will be glad to work with you to ensure you comply with existing laws, and prepare for pending legislation changes. We are not attorneys, and this information should not be used to make legal defenses or opinions. We are consultants who will work with your organization to provide programs and services that are compliant with Federal Regulations.
www.watsoncompany.com
Labels: compensation, Equal Pay Act, McCain, Obama, women's pay
The Paycheck Fairness Act (proposed)
Basically, the Paycheck Fairness Act is written to modify current laws against wage discrimination and require the federal government to be more proactive in preventing and battling wage discrimination.The Paycheck Fairness Act as proposed could:
1. Increase potential compensatory payouts by businesses in lawsuits similar to provisions under the Civil Rights Act.
2. Change opt in status to opt out status in class action suits.
3. Create new requirements by the EEOC to collect data.
4. A company can currently issue rules not to share salary data among employees. This restriction is removed under this Act.
5. Modification of currently used affirmative defense by businesses and will remove some of the defenses currently used by a company when charged with a violation of the Equal Pay Act.
6. Allows that a salary comparison need not be between employees in the same physical place of business but the measurement will be equal work and receiving unequal pay due to gender.
7. Recognition programs for businesses.
8. Increasing Training, Research, and Education for EEOC employees.
9. Reinstates the collection of gender-based data in the Current Employment Statistics survey.
10.Development of a grant program for Salary Negotiation Skills Training.
What does it all mean? We will post several more articles breaking down some of the specifics of each provision of the current and proposed Acts.
The Watson Company has over 20 years of experience in employee compensation and performance management and has worked with over 500 organizations and will be glad to work with you to ensure you comply with existing laws, and prepare for pending legislation changes. We are not attorneys, and this information should not be used to make legal defenses or opinions. We are consultants who will work with your organization to provide programs and services that are compliant with Federal Regulations.
Labels: compensation, Equal Pay Act, McCain, Obama, women's pay
What does the Equal Pay Act Mean?
In short, the EPA prohibits sex-based wage discrimination between men and women in the same establishment who are performing under similar working conditions. The EPA is part of the Fair Labor Standards Act of 1938, as amended (FLSA), and which is administered and enforced by the EEOC.1. Back Pay can be doubled if a company willingly violated the EPA.
2. Individuals must file suit and choose to opt in to a class action suit.
3. Defines current record keeping in accordance with U.S. Department
of Labor regulations found at 29 CFR part 516 (Records To Be Kept by Employers Under the FLSA).
4. No restriction on business rules regarding sharing of employee salary data
EPA has 4 affirmative defenses. The defenses that can be used are to show that the pay disparity was based on (1) a seniority system, (2) a merit system, (3) a system that determines wages based on the quantity or quality of work produced, or (4) some factor other than sex.
5. An investigation occurs only if the employee can prove that the male and female are working in the same place, doing equal work, and receiving unequal pay because of their genders.
6. Allows for current funding levels at EEOC.
7. Collection of data has been modified in subsequent revisions to the Act.
What does it all mean? We will post several more articles breaking down some of the specifics of each provision of the current and proposed Acts.
The Watson Company has over 20 years of experience in employee compensation and performance management and has worked with over 500 organizations and will be glad to work with you to ensure you comply with existing laws, and prepare for pending legislation changes. We are not attorneys, and this information should not be used to make legal defenses or opinions. We are consultants who will work with your organization to provide programs and services that are compliant with Federal Regulations.
www.watsoncompany.com
Labels: compensation, Equal Pay Act, McCain, Obama, women's pay
The Paycheck Fairness Act proposes changes to how employees can share salary data
The Paycheck Fairness Act prohibits employers from punishing employees for sharing salary information with their co-workers. This change will enhance employees’ ability to learn about wage disparities and to evaluate whether they are experiencing wage discrimination.Labels: compensation, Equal Pay Act, McCain, Obama, pay, performance management, women's pay
Sunday, September 14, 2008The Paycheck Fairness Act - Compensatory Payouts
What does it mean that compensatory payouts by business may increase under the new laws?The EPA currently provides for limited damages and back pay awards. The Paycheck Fairness Act (PFA) allows winning plaintiffs to recover compensatory and punitive damages. The change will put gender-based wage discrimination on the same level with wage discrimination based on race or ethnicity, for which full compensatory and punitive damages are already available.
While the law has yet to be passed and it will require a judge's ruling to set "limits" on this law this represents the potential for a significant shift in legal activity on this provision.
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Labels: compensation, Equal Pay Act, McCain, Obama, women's pay