Variable pay, equity pay, total rewards programs and executive compensation continued to make headlines in Q3.2024. Enjoy this roundup of news highlighting the top trends in variable compensation. And feel free let us know what caught your attention, too, on LinkedIn.
Zoom rolls back equity pay incentives
Zoom Video Communications is the latest tech firm to revamp its equity pay incentives and stock-based compensation strategy reports NewsNation. Zoom’s leadership called the plan “not sustainable” and they intend to halt stock dilution by phasing out the program over the next two fiscal years.
Hard work pays off—literally—for Microsoft employees
In a year when its share price rose 25% and it hit a market value of $3 trillion, Microsoft announced it will give back to its employees in the form of a one-time cash award reports HR Grapevine. The cash payment is in addition to annual performance bonuses and ranges from 10% to 25% of an employee’s annual bonus payment—smartly scaled by organizational level.
New McKinsey report examines what motivates employees in 2024
A new study from McKinsey reveals what effective performance management looks like in a post-pandemic world. Among their insights from a survey of 1,000+ global employees was “performance management is most effective when it features strong, consistent internal logic that employees understand.” Sounds familiar, doesn’t it? 😉
Pay transparency gains momentum in North America according to WTW survey
In its 2024 Pay Transparency Survey, Willis Towers Watson found that regulatory compliance was the primary driving force (73%) behind many U.S. companies increasing their efforts to communicate job levels, variable pay opportunities, and disclose how individual base pay is determined to external and internal candidates reports HR Dive. Company values and culture (47%) and employee expectations (46%) were also cited as top factors.
Incentivizing a better future with environmental performance metrics
A Harvard Law School group weighed in on the value of environmental-based incentives for executives and whether they will work to help companies achieve the “E” part of their ESG goals. Their verdict? Likely. But, ultimately, it will come down the goal-setting process used, reasonable targets, and including both interim and longer-term goals.
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