Category Archives: Compensation

Blue-Collar Worker Shortages: Navigating a Business Environment of Higher Labor Costs

Source: Gad Levanon, Frank Steemers, The Conference Board, December 2018
(subscription required)

From the abstract:
The threat of labor shortages is more acute in blue-collar and low-pay services occupations than in more highly educated white-collar occupations, the exact opposite of the prevailing trends in recent decades. We expect that by the end of 2019, the labor market will be historically tight. Industries that employ large shares of blue-collar workers, such as agriculture, mining, utilities, construction, manufacturing, transportation, accommodation and food services, repair, maintenance, and personal care services, are strongly affected by rising wages and shrinking supply. While the labor white-collar market is also tight, wage growth for the 40 percent of workers in management, professional, and related occupations is slow to accelerate. Sales and office workers, most of whom do not have a bachelor’s degree, are in shorter supply than management and professional workers.

Related:
Blue Collar Worker Shortage Turns U.S. Labor Market on Its Head
Source: Rich Miller, Bloomberg, December 13, 2018

The Salary Question: Negotiating the ins and outs of earning a fair compensation

Source: American Libraries, Vol. 49 nos. 11/12, November/December 2018

For more than 10 years, David Connolly has interacted with job seekers and employers in his role as recruitment ad sales manager with ALA JobLIST, the online career center administered by American Libraries, ACRL’s College and Research Libraries News magazine, and ALA’s Office for Human Resource Development and Recruitment. We asked Connolly for his insights on salary negotiations, including the biggest mistake applicants make regarding salary…..

Look West for Strongest Growth Since the Recession

Source: Barb Rosewicz & Joe Fleming, Pew Charitable Trusts, November 19, 2018

The second-longest U.S. economic expansion has played out unevenly across states. Growth has been strongest in North Dakota and a group of mostly Western states and weakest in Connecticut, as measured by the rate of change in each state’s total personal income since the start of the Great Recession. In the first half of 2018, all but a couple of states shared in widespread gains.

The national recovery has been long-running, but growth in total U.S. personal income is still off its historic pace. As of the second quarter of 2018, the combined personal income of U.S. residents rose by the equivalent of 1.9 percent a year over the 10-plus years since the recession began, compared with the equivalent of 2.3 percent over the past 20 years, after accounting for inflation.

The rates represent the constant pace at which inflation-adjusted state personal income would need to grow each year to reach the most recent level and are one way of tracking a state’s economy.

After tumbling nationwide except in West Virginia during the depths of the recession, personal income totals have recovered in all states but have grown at far different rates.

Eight states’ growth since the start of recession beat the 20-year U.S. rate as of the second quarter of 2018, and nearly all were in the West. North Dakota once again led; the sum of its residents’ personal income has increased the equivalent of 3.3 percent a year. Connecticut and four other states recorded the weakest recovery, with growth rates at or below the equivalent of 1 percent a year. None of those states are in the West.

Related:
States’ Personal Income Recovers Unevenly From Recession (PDF)
49 States’ Estimated Personal Income Grew Over Past Year (PDF)
Number of States in Which Inflation-Adjusted Personal Income Fell (PDF)

Five-Year Trends Available for Median Household Income, Poverty Rates and Computer and Internet Use

Source: U.S. Census Bureau, Press Release, Release Number CB18-187, December 6, 2018

Today, the U.S. Census Bureau announced the release of the 2013-2017 American Community Survey (ACS) five-year estimates, which features more than 40 social, economic, housing and demographic topics, including homeownership rates and costs, health insurance, and educational attainment. The ACS five-year data release produces statistics for all of the nation’s 3,142 counties. It is the only full data set available for the 2,316 counties with populations too small to produce a complete set of single-year ACS estimates. ….

Some highlights from the report include that, when comparing the 2013-2017 period to the 2008-2012 period, median household income increased in 16.6 percent of all counties (521 counties) between the 2008-2012 period and the 2013-2017 period while poverty declined in 14 percent of all counties 441 counties). Alternatively, when comparing the same time periods, median household income declined in 222 counties (7.1 percent) and poverty rates increased in 264 counties (8.4 percent)…..

Report cites gap between exec pay, FTSE 100 company performance

Source: Paulina Pielichata, Pensions & Investments, November 28, 2018

A third of FTSE 100 companies have dissonance between executive pay and performance, a report from CGLytics shows.

In its annual proxy review published Wednesday, the analytics and intelligence firm said the average total shareholder return for FTSE 100 companies decreased to 8% in 2017 from around 12% in 2016. During the same period average total CEO compensation increased 5.5% to £4.9 million ($6.3 million).

In 2017, companies with the largest pay vs. return misalignments were WPP PLC, CRH PLC and Sky Ltd., respectively. On a three-year basis, Shire PLC had the widest such gap, followed by Lloyds Banking Group PLC and WPP respectively…..

Related:
Getting Ready for the Next Proxy Season: 2018 FTSE 100 Proxy Review
Source: CGLytics, 2018
(registration required)

….2018 Proxy Season Highlights

Last season brought some interesting highlights as the executive remuneration policies were due for renewal and up for voting. CEO pay continued to be an area of concern for shareholders as pay equity, transparency, executive pay levels,and pay for performance continued to ratchet higher.
• The average votes in favour of the remuneration report fell slightly lower than the previous year with corporations experiencing significant push back on remuneration policies that investors felt lacked clarity and enough disclosures.
• Investors paid more attention in setting a ceiling for total realised pay that directors could earn and engaged actively on the performance metrics of company remuneration plans.
• A study performed by CGLytics showed that almost a third of the FTSE 100 companies have significant misalignment between pay and performance on a one and three year basis. Please refer to the Appendix for CGLytics’ annual FTSE 100 Pay for Performance Overview. It outlines the total CEO realised compensation and company Total Shareholder Return (TSR) performance for all FTSE 100 constituents against their peers in the index…..

New York’s Experience after the Tipped Minimum Wage Increase – Restaurant worker wages, employment, and number of establishments have grown in the past two years.

Source: Institute for Policy Studies and Restaurant Opportunities Centers United, October 2018

A new analysis of U.S. Bureau of Labor Statistics wage and jobs data shows that in the last two years since raising the tipped minimum wage, New York state saw a significant boost in take home pay — wages and tips — earned by full-service restaurant workers and, contrary to predictions by minimum wage skeptics, an increase in both the number of full-service restaurant jobs and full-service restaurant establishments.

A joint project by the Institute for Policy Studies and Restaurant Opportunities Centers United, this research advances previous findings published in the Washington Post on the impact of the 2015 increase in the tipped minimum wage in New York state.

#MeToo: Sexual Harassment and Executive Compensation

Source: John L. Utz, Journal of Pension Planning & Compliance, Vol. 44, No. 4, Winter 2019
(subscription required)

It would not surprise me to learn that workplace sexual harassment has a history as long as that of working relationships themselves. The incidence of misbehavior may have varied with geography, work setting, or the times, but bad behavior seems obdurate. Power is intoxicating and, when combined with carnal impulses (and perhaps an executive’s inflated self-image and underdeveloped empathy for co-workers), makes possible mischief that is personally hurtful and institutionally corrosive.

The intractability of workplace sexual harassment has been noted with woe by a taskforce formed by the Equal Employment Opportunity Commission (the “EEOC”). That taskforce—the two co-chairs of which were EEOC commissioners—reported that studies of sexual harassment suggest 25 percent of women, at the low end, report having experienced sexual harassment in the workplace. Select Taskforce on the Study of Harassment in the Workplace, U.S. Equal Opportunity Commission, June 2016, p. 8. Also, this is the result 30 years after the Supreme Court held that workplace harassment is an actionable form of discrimination prohibited by Title VII of the Civil Rights Act of 1964. Meritor Sav. Bank, FSB v. Vinson, 477 U.S. 57 (1986).

Perhaps 2017 will prove to have been a watershed year, both in the effort to reduce the incidence of sexual harassment, and the effort to identify and punish wrongdoers…..