This is our roundup of variable compensation news for Q2.2024. From executive accountability to employee retention, these news headlines highlight how the tool of variable compensation can be use well and, ahem, un-well. Let’s get to it, shall we?
Microsoft ties executive bonuses to cybersecurity
In an effort to increase accountability, Microsoft’s Vice Chair and President Brad Smith explained that their executive pay program is changing next year. As recapped by CNBC, the changes include a new individual performance measure tied to cybersecurity as well as the ability of its Board to “exercise downward discretion on compensation outcomes as it deems appropriate.” Editor’s Note: This emphasis on cybersecurity preceded the CrowdStrike disruption in July 2024.
Walmart adds Total Rewards for hourly employees
As reported by SHRM, Walmart has introduced a financial bonus of up to $1,000 for part-time and full-time hourly associates—which will be paid based on their store’s performance and years of service. This announcement is the latest in a series of total reward benefits the retailer has added to attract and retain talent as well as improve employee well-being. “For Walmart to be the best place to shop, we also need it to be the best place to work,” explained John Furner, U.S. CEO, and Lo Stomski, SVP and Chief Talent Officer.
Public utility bonuses to executives in Nebraska soared last year
An investigation by Flatwater Free Press is questioning why top public power executives in Nebraska received bonuses ranging from 40% to 100% of their base salary. The Nebraska Public Power District claims there is extreme competition in the sector and uses the bonus program for retention purposes.
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