Bloomberg reported a study just released that shows women doctors make on average $20,000 to $50,000 less than men. It’s worth a read.
http://www.bloomberg.com/news/articles/2016-07-11/even-as-doctors-women-get-slapped-with-the-pay-gap
Call us if you’re experiencing similar problems at your workplace.
The Securities and Exchange Commission is considering new rules and regulations for compensation claw back policies. If the proposal is adopted, it will implement specific requirements from the Dodd-Frank Wall Street Reform and Consumer Protection Act, where companies listed with national securities exchanges and associations will have to develop and implement clawback policies.
In general, all listed companies must maintain a written claw back policy for the recoupment of certain compensation awarded to executive officers. Some of the specific terms of the executive summary include:
Under the proposal, the claw back clause must contain the following elements:
For questions about this proposed regulation and possible implications for your company, contact our office to speak with an attorney.
Philip Gordon testifies in favor of new Massachusetts Noncompete Bill
Massachusetts is set to revamp its existing noncompete laws and pass new legislation favorable to employees, as well as companies seeking to grow in Massachusetts. Philip Gordon spoke in front of Senators and Representatives about the proposed legislation, and the bill eventually passed in the Massachusetts Senate by 32 votes to 7.
The proposed changes to noncompete laws in Massachusetts would ban those clauses for workers classified as nonexempt under the Fair Labor Standards Act (FLSA). Exempt employees – typically, professionals, administrators or executives – would continue to be subject to noncompete clauses, but with more predictable results. Noncompetes now would last only for six months, and they would be valid only if limited to a predefined geographic region and specific employment duties. Thus, if an employee finds new employment after six months, in a different area, or with different responsibilities, they would be allowed to begin working immediately.
Other major changes include a requirement that advance notice of any noncompete be provided to individuals prior to employment, and that the clauses themselves be clear and specific.
Click here to view the latest version of Massachusetts Noncompete bill.
If you have any questions, please contact us.
Executive contracts often include a range of options, clauses, benefits, restrictions and obligations. We represent employees at all levels in the negotiation process, and this post will share our thoughts on some of those provisions.
The range is broad: non-qualified stock, incentive stock, incentive bonuses, pay for performance, deferred compensation, retirement plans, benefit plans, business expenses, choice of laws, arbitration clauses, non-competes, non-solicitations, confidentiality clauses, termination provisions, residency requirements, and post-employment cooperation agreements…to name a few of the more common provisions.
Below, we outline some of the main parts of employment agreements and answer some of the most common questions that we get asked. Of course, feel free to contact us with any other questions you may have.
If you’re negotiating an employment relationship, or termination, contact us today.
Call us today at 800-403-7755 to schedule a free consultation with our team of talented attorneys.
Click here to view Gordon Law Groups FAQs on executive compensation.
2) Executive Compensation is varied. It often consists of a combination of salary, bonuses, equity, benefits, and other perks, and it typically based on company performance, length of employment, benchmark data, market practices, individual performance, and other factors.
4) Dodd-Frank reform allows shareholders of a public corporation vote on executive compensation and recommend whether executives are receiving a fair amount of compensation. However, for the moment at least, this vote remains non-binding.
5) Executives are covered by the same laws as normal employees. Just as employees must be paid all wages earned, that is no different for executives. This does not include minimum wage or overtime laws but does include executive compensation.
If you have any other questions surrounding executive compensation, check out our FAQs page or contact us today. Severance Agreements and Releases: A Breakdown
You never walk into your dream executive job thinking about an exit strategy. But there is a distinct possibility that you may be asked to leave your company for any number of reasons. Rather than being blindsided by this, you can agree to a severance package with your employment.
Why would a company agree to a severance arrangement? They can prevent expensive litigation between employers and terminated employees. The agreement itself is just a contract between an employer and employee waiving certain legal rights of the employee in exchange for additional compensation or other benefits provided by the employer. On one hand, for the employee, the positive side of severance benefits may include large one-time payments, continued health benefits, additional salary payments, letters of recommendation or other offers.
On the other hand, severance packages may also include critical non-compete and confidentiality agreements, as well as releases requiring the employee to give up any claims she may have forever. Before signing such an agreement, be knowledgeable of the effects those provisions may have on your future ability to obtain employment.
If you’ve been offered severance in exchange for a release, contact us today.
Median CEO pay passes $10 million
For the first time ever, median CEO pay among the Standard & Poor’s 500 topped $10 million annually, marking the fourth straight year that CEO compensation rose.
The rise in CEO pay can largely be attributed to the strong performance of stocks in the past 12 months. Because executive compensation is increasingly tied to company performance, the success of the S&P index resulted in the stock component of executive compensation packages propelling median CEO pay above the $10 million threshold.
With bigger money on the table via stock options grants and performance rewards, it is becoming increasingly important to keep up with and understand the labyrinth of CEO pay. If you have any questions about how your executive compensation works, or are negotiating a new deal, contact us at Gordon Law Group.
Early Data for 2013 shows rise in CEO compensation
By now, you’ve heard all about Pay for Performance – executives’ bonuses are not predetermined anymore but instead based on the performance of the company in both the long and short-term. But by and large, shareholders have supported executives and paid them accordingly.
Here are some key statistics that show data in 2013 compared to 2012 (data from http://www.capartners.com):
So what does the data tell us? It seems pretty evident that executive pay is rising, predominantly through meeting targets. Executive pay is also increasingly tied to the long-term success of the company, with executives rewarded for meeting long-term goals (usually over a three year period).
Proposed legislation would raise base pay for executives
New legislation has been proposed that would increase the minimum salary basis level that employers need to pay as part of the requirements to avoid the overtime rules. Workers classified as executive, administrative or professional employees would have their weekly minimum pay more than doubled, and the floor for highly-compensated employees will increase too, by 25%.
Currently, executive, administrative or professional employees must earn a minimum of $455 per week (base salary) to be excluded from overtime rules. However, in the next three years the new proposal would incrementally increase that floor to a minimum of $1,090 per week, or else overtime must be paid.
Similarly, the floor for highly-compensated employees would be raised to $125,000 per year. This is an increase from $100,000 and would be periodically indexed for inflation.
If you have any questions about the legislation or any other overtime questions, contact us today.
ISS (International Shareholder Services Inc.) has released its 2014 U.S. Policy updates, with a modification to the executive compensation section, changing the methodology of how they calculate the Relative Degree of Alignment (RDA). The RDA evaluates executive pay and performance relative to peers. Under the revised methodology, ISS will calculate the difference between the company’s total shareholder return rank and the CEO’s total pay rank within a peer group, as measured over a three-year period.
Previously, ISS would take the difference between the company’s total shareholder return rank and the CEO’s total pay rank within a peer group, as measured over one-year and three-year periods (weighted 40% / 60%). The new methodology serves to simplify and smooth the process. This shouldn’t make too much of a difference for executives, but does continue the overall trend of executives being rewarded for long-term successes over short-term successes.
The 2014 Updates were agreed on November 21, 2013 and have been effective for shareholder meetings on or after February 1, 2014.
Representing Executives 
