Searching Workplace Equity on page 37

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Equity Plans We have observed some headwinds for equity plan share requests.

Building the Right Compensation Package In addition to the standard salary and performance bonuses, Canavan said the building blocks should be: retention incentives, which organizations can address through real or “phantom equity” (a type of compensation award that references equity, but does not entitle the recipient to actual ownership in a company); a long-term cash bonus plan; or split-dollar life plan, which allows the sharing of the cost of a premium for a permanent life insurance policy.

Goldman Sachs, Deloitte Ending DEI Programming Two more organizations have joined the growing list of businesses rolling back their diversity, equity and inclusion (DEI) initiatives after U.S.

This combination of distress at both the organizational and individual employee levels is accelerating changes in the workplace.

When making these key decisions, it is best to take a holistic approach that balances market factors, a company’s strategic initiatives and existing internal pay equity and structure.

Standards and Practices According to Holloway, director compensation structures at publicly traded companies remain fairly standardized, with most typically offering: ;Annual board retainers composed of approximately 40% cash and 60% equity, with no separate meeting fees.; ;Full-value equity awards granted based on fixed-value rather than fixed-share amounts, with short vesting periods (immediate or one year).; ;Board retainers that do not include additional compensation for committee service, except for committee chairs, who receive retainers recognizing their added responsibilities, time commitments and heightened scrutiny.; “Director compensation approaches at privately held companies are much more varied than at publicly traded companies,” Holloway said.

.; Reuse Permission Pay equity has been a significant focus for employees, employers and state and federal enforcement agencies for the past five to six years.

For firms that track equity at book value, external investment will effectively change equity tracking to market valuation.

Pay Equity: Going Beyond Statistical Analysis While most organizations conduct periodic pay-equity audits to ensure that pay outcomes don’t appreciably vary between gender and race groups, many don’t go beyond these initial efforts.