Non-Profit Organizations and the Intermediate Sanctions Rule

BE AWARE OF REASONABLENESS OF COMPENSATION RULES The Internal Revenue Service has specific rules for compliance under the Intermediate Sanctions ruling (IRC Section 4958) regarding reasonableness of compensation. These rules apply to nonprofits that take donations in all sectors of the economy. These organizations should periodically review the compensation levels for their most senior [...]

Hospital/Healthcare Performance Evaluation

The Board of Directors and management in hospitals and healthcare institutions rely on third party, objective comparability studies to ensure that executive pay is reasonable.  Its relatively easy to identify and acquire objective sources with real-time compensation data.  Using these sources, any healthcare organization can establish a range of compensation opportunities for the executive [...]

Pay Ratio Overview: “Much Ado About Nothing”

“In a false quarrel there is no true valour.”   (Benedick, Act 5 Scene 1) Pay Ratio reporting was inserted into Dodd-Frank at the urging of organized labor. The AFL-CIO has tracked the ratio of the average proxy reported total compensation of S&P 500 CEOs to the Bureau of Labor Standards’ average wages paid to [...]

By |2019-10-07T05:51:15-07:00August 27th, 2018|Board Advisory, Executive Compensation|0 Comments

Executive Pay Trends

Here's what we're seeing as the trends in executive pay Base Salaries Consistent with recent years, median increase will be 3% 42% held CEO salaries flat, 17% held flat for other executives With repeal of Section 162(m) some companies are considering changing base/bonus mix Annual Incentives Goals set based on multiple factors Budget Guidance [...]

By |2019-10-07T05:53:50-07:00August 14th, 2018|Board Advisory, Executive Compensation|0 Comments

The Case for Implementing Geographic Pay

By Ann Fosburgh - Compensation Works With significant advances in technology and the availability of reliable internet service as the standard, professionals in every industry have the flexibility to work virtually anywhere. Distributed work forces with teams of employees and managers in different cities are increasingly common. The result of this increasingly global workforce [...]

Make Your Performance Management System Work Harder & Better For You

By  Total Compensation Solutions We hear all the reasons why performance management doesn’t work and wonder “are there companies that are doing this well?” I am happy to report that there are companies that take the process seriously and have an effective program in place. There is an insurance company headquartered in the Midwest that [...]

Why Doesn’t My Performance Management System Work?

By Total Compensation Solutions Performance management is the scourge of most managers in this country. In my 30 plus years in human resources working in corporations and consulting, one of the most frequent complaints is that the current performance management system just doesn’t work. Why? The two more frequent reasons we hear are: “The merit [...]

Short-Term Incentive Compensation Increasing Beyond Executive Ranks

Short-term, cash incentives continue to dominate the compensation and incentive-pay landscape at both private companies and nonprofit/government organizations according to salary and compensation survey research released in May 2018 by WorldatWork in partnership with Independent Compensation Advisors member, Vivient Consulting. “Spending on short-term incentives (STIs) increased modestly at private companies from 2015 to 2017, which [...]

Debunking Myths About Compensation Consulting Projects

Engaging a compensation consulting firm to perform a compensation analysis can sometimes be intimidating. It's a little bit like being an 18-year-old and the first in your family to apply to an Ivy League school. What if you actually get in? There will be times when you're uncomfortable and challenged but, ultimately, you're going [...]

2018 Executive Compensation Survey Launched for Private, Middle Market Companies

Independent Compensation Advisors members, D. G. McDermott Associates, the Wilson Group and Vivient Consulting, announce the roll-out of a new 2018 Executive Compensation Survey specifically designed for privately held, middle market companies in the U.S. This 2018 executive compensation survey gives Board Compensation Committees the opportunity to compare executive compensation data and CEO pay [...]