California HR

Don’t Forget About Culture When It Comes To Executive Comp

Yesterday, business consultant and CED guest author Bridget Miller looked at the first 5 of 10 factors you should consider when it comes to setting executive compensation. Today, the rest of her list—plus an introduction to a webinar later this week you’ll want to be sure to catch.

[For #s 1-5, click here.]

  1. Company culture should not be ignored. The compensation and benefits package should reflect the company’s values and also take company goals into account—especially regarding aspects related to pay-for-performance.
  1. Consider which level of equality/inequality is tolerable within the organization. Assess how much executives are paid as compared to the average employee within the organization. This can have ramifications for employee morale, especially for organizations in which executive compensation is discoverable in any way.
  2. Public perception matters, too. Think through the message the compensation level sends.

Exempt vs. non-exempt in California—webinar coming Thursday! Learn more.


  1. For publicly traded organizations, shareholder opinions matter as well, and often board approval must be sought. Stock price can be affected by inappropriate executive compensation packages. Paying too much can be seen as an inappropriate use of company resources, especially if it takes away from profit when the new executive does not offset the high salary with profit gains. (The Dodd-Frank Act even has a provision known as “Say-on-Pay” that gives shareholders the right to express approval or disapproval, although this opinion is not legally binding.)
  2. Even with a great process to answer all of these questions, it can be beneficial to get external opinions (such as from consultants) to ensure objectivity.

Thursday, March 26, 2015

10:30 a.m. -12:00 Noon Pacific

In California, both the federal Fair Labor Standards Act (FLSA) and the California Labor Code regulate employee overtime exemption. This means you have to abide by federal and state requirements for pay, deductions, meal and rest breaks, and more to protect from potentially costly lawsuits and ensure fair labor practices.

And changes are coming. The Labor Department is about to overhaul white-collar overtime exemption regs, which will change how your workers should be classified. Here in California, state requirements are even tougher.

Knowing how to classify employees is essential for California employers, especially if exempt employees are performing duties beyond their job descriptions. Otherwise you might end up with a costly lawsuit if a fired exempt employee claims overtime for his or her non-exempt activities.

Join us this Thursday, March 26, for an interactive webinar on how to navigate the maze of intersecting California and federal laws covering exempt and non-exempt statuses. You’ll learn:

  • The latest on the DOL’s overtime exemption regulations and the practical impact they’re likely to have on obligations under California law
  • Criteria employee duties must meet to be exempt from overtime in California
  • Which employees fall into the non-exempt category
  • How rules get blurred when an exempt employee performs non-exempt functions beyond the job description
  • How to know if a supervisor or assistant manager qualifies as exempt or non-exempt
  • Differences in pay deduction rules for exempt and non-exempt employees
  • What the minimum wage hike in California means
  • Temporary or part-time employee pay
  • Who gets overtime, and when are exceptions made
  • How to avoid wage and hour lawsuits in California
  • And much more!

Don’t miss it—sign up, and reserve your spot today. Can’t make it on Thursday? Order the recording, and learn at your convenience.

Download your copy of

Paying Overtime: 10 Key Exemption Concepts
today!

  • This advice is nice to see: “Assess how much executives are paid as compared to the average employee within the organization.” Unfortunately, until this practice becomes widespread, employers that want to stay competitive on the job market can give little sway to this factor.