As we hit the midpoint of the 2022 proxy season, shareholders and investors continue to shift focus towards untraditional topics compared to prior year's proxy seasons. At the forefront of these conversations sits ESG (environmental, social, and governance) and human capital management (HCM) matters. Boards are now establishing committees specific to such issues as human rights/diversification, sustainability and environmental as...
Effective compensation programs have a strong circular relationship between measurable goals, tangible performance, and actual payouts. This is true whether the goal or goals are short-term or long-term in nature. But what happens when the lines between goals and performance become blurred? Do the compensation programs themselves cease to carry the same power to influence actions? Or even more concerning,...
In times of economic uncertainty and heightened retention concerns across all employers, utilizing capital to its highest utility is of the utmost importance. NFPCC has been diligently focused on the strategic use of compensation within client organizations. Specifically, NFPCC has consulted with clients to understand philosophical and psychological differences amongst their respective workforces. Within the U.S. workforce today, four different...
It’s been nearly twelve years since The Dodd-Frank Act was enacted as a direct response to the financial crisis of 2008. The Act holds many sections detailing regulations to be enforced; however, a recent resurgence of proposed pay for performance mandates from 2015 have surfaced and are, once again, in the spotlight for consideration by the SEC. What is Pay...
Salary budget planning for 2022 has been a hot discussion as companies moved to finalize budgets for this year. In general, salary forecast trends for 2022 are currently tracking to be about one percent higher than previous projections earlier in 2021. Recent pulse surveys (conducted by Mercer, SHRM and WorldatWork) have surfaced suggesting companies are now looking to make increases...
Companies preparing compensation strategies for 2022 can expect similar conditions to what we have seen in 2021. The ever-changing environment along with sporadic regulatory requirements from COVID protocols are forcing companies to be more adaptable. Believing the US economy and workforce will retreat to their pre-pandemic form is unreasonable. Therefore, companies must continue to adapt, taking lessons learned from 2021....
The employment market reflects drastic changes following the COVID-19 pandemic. The U.S. Bureau of Labor Statistics reports 4.4 million workers left their jobs in September of this year with no indication of slowing. The old-school model of employee loyalty to a firm has been replaced with an emphasis on compensation packages, work-life balance, and job trajectory, shifting the job market...
Impacts of a global pandemic, volatility in the markets, bankruptcies and consolidation through M&A activity has created a new business landscape… one no industry has completed escaped. The one area this impacts meaningfully is peer selection for compensation peer groups. To be sure, choosing a peer group can be a frustrating necessary task, exacerbated further by a shrinking universe of...
The effect of the 2020/2021 economy has wrecked recruiting and budget plans, causing a shifting of power. Specifically, the transition and pausing of business in the early months of the pandemic resulting in a precipitous decline across all sectors. The economy has rebounded, yet many businesses have not been able to find or retain the talent to fill their crucial...
For a long time and even more recently in a pandemic/worldwide health crisis, the compensation of executives, specifically in cyclical and commodity-based businesses, has always been scrutinized. Our firm sees articles like Forbes’ “CEO Compensation is Out of Control” and hears comments from top professionals like Warren Buffet saying, “I do not like what is going on with executive compensation."...
