Searching Pondering Equity-Based Long-Term Incentive Plans on page 24

Gail Greenfield is an eminent pay equity expert with Trusaic who serves as Executive Vice President of Pay Equity and Total Rewards Strategy and Solutions.

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Key Takeaways 7 Senators Pen Letter Decrying Alternative Assets in 401(k) Plans;Ninth Circuit Rejects Constitutionality Claims Against NLRB; 7 Senators Pen Letter Decrying Alternative Assets in 401(k) Plans Seven U.S. senators on Wednesday, Oct. 29, sent a public letter to Secretary of Labor Lori Chavez-DeRemer and Securities and Exchange Commission (SEC) Chairman Paul Atkins that expressed concerns about President Donald Trump’s Aug. 7 executive order that aims to enable greater access to alternative assets (i.e., private equity, cryptocurrencies and real estate) within Americans’ retirements plans.

One approach you can take is to break down each element of your compensation strategy — whether it's base salary, bonus, equity or benefits — and assign specific objectives to each: ;Base salary for skills and competencies; ;Annual bonus for performance; ;Equity for long-term value creation and retention; ;Benefits for culture.; A scattered approach dilutes focus and efficacy.

Broadly, the overarching rule states companies must: ;Recover affected incentive compensation paid during the three fiscal years preceding the restatement — the “lookback period” (only for fiscal years after the rule came into effect).; ;Claw back performance-based compensation tied to the relevant metrics (bonuses, performance stock units, etc.) — other forms of compensation, such as base salary or time-based equity, are not subject to the SEC’s rule.; ;Pursue recoupment in a “reasonably” prompt manner.; This mandatory clawback can be triggered when a company files either a “Big R” (formal amended SEC filing) or “little r” (out-of-period adjustment) restatement, so long as the restatement affects the financial metrics underlying incentive awards.

Like sales compensation designers at other companies, you have updated your incentive plan for this fiscal year.

“There was a time when organizations thought of financial well-being as all about long-term security and retirement plans, but now employees are really looking for short-term financial stability,” he said.

Incentives should be: ;Clearly linked to enterprise key performance indicators (KPIs); ;Balanced between short- and long-term performance; ;Supported by measurable and auditable metrics; ;Structured to avoid excessive risk-taking; The governance overlay is no longer optional.

Gail Greenfield is an eminent pay equity expert with Trusaic who serves as Executive Vice President of Pay Equity and Total Rewards Strategy and Solutions.

Pay equity is actually too limiting of a term.