January 2017 L-Blast: Deal Lawyer SEC Chair Could Mean Changes for Executive Compensation | ‘Tis the Season for W-2 Scams | New Congress Begins with Total Rewards Issues Keyed Up For Action

Dear All,
It’s crazy to think we are already in February and proxy season will soon be upon us. January flew by and was an interesting month with President Trump’s inauguration. Many of us are keenly monitoring the changes taking place during Trump’s initial days in office. One that we find interesting is the nomination for SEC Chair. Walter “Jay” Clayton, a well-known deal lawyer in mergers, acquisitions, and IPO’s, is the focus of this month’s L&A original article. We sought to explore his experience and expertise in corporate America and what it might mean for the future of executive compensation. We have a couple of other interesting articles this month and an announcement that we hope you will find valuable.

The first article discusses a human resources nightmare we are familiar with – the season of W-2 scams. Criminals obtain W-2s with Social Security numbers, salary data, birthdates, addresses and other personal information, file fake federal tax returns and make off with claim refunds from the government. New tax filing deadlines for employees are being implemented in the hopes they may help prevent these cybercrimes. The article discusses ways the human resources function can protect jobs and data to minimize the potential of it falling into the wrong hands. We know you will find this information valuable and important in the coming weeks.

The other article features our friends at WorldatWork discussing the new Congress’ potential actions related to total rewards issues in the coming weeks. Congress is expected to address several issues, the first being The Patient Protection and The Affordable Care Act (ACA) and its repeal. With President Trump signing his first executive action kicking off the process of rolling back the ACA, WorldatWork expects to see efforts from Republicans via the Congressional Review Act. While focusing on the ACA, we find this article interesting as the new president has promised to quickly undo several Obama administration executive orders affecting total reward issues. More to be seen here surely.

Finally, L&A recently conducted its 2016/2017 Energy Pay Pulse Survey and has finalized survey results. We have included an executive summary below for your review. Please feel free to reach out to us if you have any questions or are interested in participating in the next Energy Pay Pulse Survey.

As always, let us know if there are any topics you’d like to hear more about. We appreciate each and every one of you.
 
 
Sincerely,
Brent_Signature_white
Brent Longnecker and the L&A Team
Chairman and CEO
Longnecker & Associates
 


Deal Lawyer SEC Chair Could Mean Changes for Executive Compensation

Many of President Trump’s appointments have been polarizing, and the nomination for SEC Chair has been no exception. Walter “Jay” Clayton, Partner at Sullivan & Cromwell, a well-known deal lawyer in mergers, acquisitions, and IPOs is currently an unknown in the political arena.

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‘Tis the Season for W-2 Scams

Between January and March of last year, more than 55 businesses had reportedly been tricked into e-mailing criminals sensitive payroll data, according to the security blog Cloudmark. HR professionals – some of whom were fired for exposing private information – were duped when they received spoofed or fake e-mail messages.

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New Congress Begins with Total Rewards Issues Keyed Up For Action

Over the next few weeks, and certainly in the first 100 days of the new Trump administration, Congress is expected to address several significant total rewards issues. First up: Obamacare repeal.

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2016/2017 Energy Pay Pulse Survey Executive Summary

Employee Population

  • Projected 2017 employee populations are trending upward. 67% of respondents reported increasing their employee population, up from 46% in 2016.

Base Salary

  • Base salaries are expected to increase between 2 – 4% in 2017.

Annual Incentives

  • Based on performance forecasts versus formula, annual incentive payouts for 2016 are projected to be between the levels of threshold-to-target and target.
  • From a final delivery perspective, the annual incentive payout is projected higher: between the levels of threshold-to-target and target-to-maximum.
  • Approximately 24% of respondents are anticipating the use of discretion. However, the use of positive discretion (15%) is more prevalent than the use of negative discretion (9%).

Long-term Incentives

  • At the executive level, the most prevalent plan is using two different vehicles when making long-term incentive grants, specifically restricted awards and performance awards.
  • For all other employees, the most prevalent plan is only using restricted awards when making long-term incentive grants.

 

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