technology Articles

ISS Survey Hints at Potential Changes to Options in Board Pay, Gender Pay Proposals and More

ISS’ new Global Policy Survey suggests many issues important to our clients are front and center for ISS. These include one share/one vote, use of options as a meaningful component of director compensation, how CEO pay ratios should be used by investors, gender diversity on boards and gender pay gaps among employees. We summarize the biggest issues for US companies.

It’s Time for Technology Companies to Take a More Nuanced Approach to Pay in China

As China's technology sector grows and matures, setting pay in Tier 2 and Tier 3 cities isn't as simple as it used to be. We explain how companies can benchmark pay in China’s increasingly complex market to stay competitive without over- or under-paying for key talent.

Voluntary Sales Talent Turnover Finally Slowing Down

Voluntary salesforce turnover is finally showing signs of slowing across the US technology and life sciences sectors after more than five years of growth. In this article, we summarize the three forces driving the slowdown and explore what sales leaders should be aware of as they continue to try to retain high performers.

A Hot Talent Market and High Levels of Equity Participation Put Pressure on Share Pools

Technology companies are dealing with attracting employees in a red-hot job market while managing shareholder expectations to keep dilution rates under control. What’s more, mature public companies are often at a competitive disadvantage to newly public companies that have evergreen provisions. Our paper offers ways companies can conserve shares but remain competitive.

These Five Perks Are Key to Driving Company Culture

Our latest survey of perquisite practices at technology and life sciences companies went a step further than most. We didn’t just ask about prevalence and cost— we also asked which perks help drive and sustain corporate cultures.

The CEO Pay Ratio Deadline is Looming; Here’s How Companies Should Prepare

As we move past the midpoint of 2017, work is already underway at a number of our clients to begin preparing for the calculation and disclosure of CEO pay ratios next spring. Although many experts anticipated the CEO pay ratio rule would be delayed or repealed, this now looks increasingly unlikely. Here are key steps we recommend taking to ensure you stay on track for 2018 disclosures.

Is Your Company About to Graduate from the JOBS Act? Here’s Your Planning Checklist

The JOBS Act recently turned five, the maximum amount of time companies can take advantage of JOBS Act protections. This means a large number of firms are about to face greater proxy advisor scrutiny, Say-on-Pay votes and the full gamut of executive compensation disclosures for the first time. Our new client alert outlines all of the major planning items you’ll need to consider as you exit the JOBS Act.

Hidden Strategy Killers: How Leaders Can Recognize, Avoid and Tackle Common Pitfalls

Almost every organization suffers from one or more hidden strategy killers. Unspoken ailments that stand in the way of innovation and execution. We explain how to identify common strategy traps, and discuss specific leadership, rewards and recognition and talent actions you can take to knock out strategy killers.

What’s In and What’s Out: The Latest Perks Offered by Technology Companies

In the May 2017 issue of WorldatWork’s Workspan magazine, Radford’s Tim Brown discusses emerging and established perquisite practices at technology and life sciences companies using new data from our recent US perquisites survey.

New Radford Data Suggests the War for Talent in China Could be Cooling Off, But Just a Little

The technology sector in China continues to attract massive levels of investment, making it one of the most opportunity-rich markets for entrepreneurs, companies and workers alike. Yet, new workforce trends data from Radford suggest the competition for talent may be slowing down. We examine why.

When It Comes to Sales Compensation, Three Key Issues Are Top of Mind for Sales Leaders

We recently met with Silicon Valley sales leaders to discuss the three biggest compensation challenges they face when trying to drive rapid, but sustainable growth. For most, it boils down to aligning plan design to stage of growth, creating strong job definitions to support effective benchmarking and quota management.

What Keeps Talent Leaders Up at Night? It Isn't Job-Killing Robots. It's the Death of Culture.

We recently connected with technology talent leaders to discuss the future of work, maintaining culture in the face of hyper-growth, and accelerating innovation through people in the face of unrelenting technological change. Everyone agreed these challenges are significant, but ones worth embracing vs. avoiding. To learn more about how these leaders plan to tackle the future, read on.

Russia’s Economy Has Stabilized, Affirming a Stay-the-Course Approach to Employee Pay

When economic uncertainty and rapid inflation jolt a market, it's tempting to make quick adjustments to compensation to ease employee concerns. However, as Russia’s stabilizing economy shows, adjusting pay to match inflation rates or pegging salaries to foreign currencies often doesn’t pay in the long run.

Is Your Sales Compensation Plan Paying for Performance? Take These 3 Steps to Find Out.

How do you know if the design of your sales compensation plan is generating good pay for performance outcomes? Our new article outlines three analysis-driven steps you can take to find out.

US Companies Extend More Benefits to Their Part-Time Employees

The use of contingent and part-time workers is rapidly on the rise, forcing technology and life sciences companies to rethink their approach to total rewards for these types of employees. To explore this trend, we compared data from the Radford US Benefits Survey in 2009 and 2016 to highlight where benefits offerings for part-time employees are becoming more prevalent.

Designing Innovative Long-Term Incentives for Executives at Newly Public Companies

In this job market, executives who’ve led companies through a successful IPO are a hot commodity. Read our latest article for advice on delivering post-IPO equity awards that keep top executives engaged while delivering pay-for-performance accountability to shareholders.

Following Snap’s IPO, We Met with 40 Private Technology Companies to Discuss the Competition for Talent in Today’s Hot Market

On the heels of Snap’s impressive IPO, Radford hosted its annual meeting for private technology companies. We discussed the state of the IPO market, today’s hyper-competitive hiring environment and strategies for scaling fast. Read our recap article to learn what’s top-of-mind for HR leaders at some of Silicon Valley’s hottest startups.

To Attract Candidates With Hot Skills, Should Tech Companies Create Specialized Job Titles?

Current demand for data scientists, agile programmers and engineers with cloud computing experience highlights a familiar challenge at technology companies: how to attract top candidates with hot skills and benchmark their pay? Our clients often ask us if they should pay a premium or create new job titles to accommodate in-demand skills. The solution often lies somewhere in between.

UK Gender Pay Reporting Law Provides an Opportunity to Strengthen Rewards Programs

In an effort to close the gender pay gap, the UK government’s Gender Pay Gap Reporting Regulations go into effect in April 2017. Our new client alert provides tips for compliance as well as voluntary measures all companies can take to proactively address potential inequalities in their rewards programs.

How to Approach Peer Groups below the C-Suite

Developing peer groups for non-executives and executives isn’t an apples to apples exercise. When looking at your broader employee population, market dynamics, such as industry convergence, telecommuting, and casting a wider geographic net to fill hot jobs, requires you to have a deep understanding of regional pay differences and practices.

Tech Startups Embrace Bonus Plans but Design Features Change with Revenue Growth

As pre-IPO companies generate more revenue, they are more likely to make changes to their short-term incentive plan targets, eligibility levels and performance measures. Using our database of private technology companies in the Radford Global Technology Survey, we explore the latest plan design trends as well as questions companies should ask themselves when considering whether to implement or change their bonus plan.

Four Steps to Tackling the CEO Pay Ratio Rule

In preparation for CEO pay ratio disclosures to begin in 2018, we outline four major steps companies can take to ensure disclosure and communication processes address every stakeholder perspective.

CEO Pay Ratio Rule in the Crosshairs of Congress, SEC; Relief Could be Slow

The future of the Dodd-Frank CEO pay ratio rule grows less certain by the day. The SEC recently opened a 45-day comment period for issuers to report on difficulties encountered while trying to comply with the rule. The agency said it was considering delaying or amending the disclosure, and meanwhile, Congress is working toward a full repeal. But the clock is ticking until the rule goes into effect on January 1, 2018.

In Calculating Your CEO Pay Ratio, Relativity to Peers is the New Math

In preparing for the CEO pay ratio rule, comparing how your pay ratio compares to a set of industry peers is the analysis most shareholders will likely make. Using our extensive survey data, we show how ratios differ within the technology and life sciences sectors by industry as well as revenue size and workforce location.
 

Austin, Denver Take Lead in New-Hire Salary Growth for Product Development Engineers

Silicon Valley isn't the only place where the market for technical talent is red hot. In fact, base salaries for new hires are rising faster in a number of other technology hubs across the US. Our latest article examines multi-year trends in key markets and explores what these trends mean for talent-hungry technology companies.

Pay Differences in the UK Technology Sector Highlight the London Premium

When benchmarking pay to determine the competitive job market in countries that have especially powerful economic or industrial hubs, it's important to take a periodic review of regional pay premiums to see how much they are changing. Following up on our research from nearly three years ago, we revisit regional pay differences among UK technology companies and find the premium commanded in London is stronger than ever.

How to Get C-suite Buy-in on Your New Sales Plan

In the November 2016 issue of WorldatWork's Sales Compensation Focus newsletter, Radford's Scott Barton discusses how to effectively communicate with and achieve support from the C-suite when making changes to your sales compensation plan.
 

ISS and Glass Lewis Issue Final 2017 Policy Updates

ISS and Glass Lewis have both released their final 2017 policy updates. Key changes include amendments to director pay and governance policies in the US, and pay-for-performance and director grant policies in Europe and Canada. Read our full analysis in our new client alert.

ISS Adds Metrics to Qualitative Say-on-Pay Screening, But Not All Industries Will Benefit

ISS has added six new financial metrics to its qualitative pay-for-performance assessment. While many of our technology and life sciences clients will welcome a more diverse view on measuring performance relative to pay, pre-commercial biopharma companies won’t find these new metrics a relevant measurement of company success. In this client alert, we discuss actions companies can take now to prepare for changes in the upcoming proxy season.

Scaling Your Sales Compensation Plan for High Growth Business Opportunities

As your business begins to scale rapidly, it can be a challenge to take your existing sales team and sales incentive plan along for the ride. In this article, we examine how sales roles and incentives evolve by stage of development, and we offer a 7-step process of approaching the redesign of your sales compensation plan.

ISS Releases Proposed Policy Updates; Excludes Changes to US Executive Pay Issues

ISS just released its proposed 2017 policy updates, and while it appears that ISS has punted on a number of executive compensation issues in the United States, the firm is proposing a number of compensation changes in Europe and Canada. Read our summary of the policy updates and submit your comments to ISS by November 10.

Results from ISS' Annual Policy Survey Show Support for Alternative Performance Metrics

ISS' 2016 Global Policy Survey asked questions on a range of issues, from executive and director pay to dual-class share structures for IPOs. In our new client alert, we examine all of the potential policy changes that could have the biggest impact on our clients in 2017 and beyond.

More Technology and Life Sciences Companies Are Turning to Market-Based Salary Structures

When thinking about the right approach for establishing employee salaries, many of our clients in the highly-competitive technology and life sciences sectors are embracing market-based salary structures. This method allows hiring managers to keep a pulse on the market while adhering to acceptable upper and lower limits set by the company.

New Overtime Rules are Almost Here; Understand Your Options

Companies can adopt a number of approaches to comply with new federal overtime rules in the United States, which go into effect at the end of 2016. Our new article discusses your options, weighing the pros and cons of each, and provides a roadmap for executing an effective employee communications plan discussing the changes you make.

2016 Say-on-Pay Review: Technology Companies Receive Steady Support From Shareholders Despite Lower Performance

As executive compensation planning season kicks off, and another proxy season looms, our consulting team decided to take a look back at this year’s Say-on-Pay results for technology companies, including insights on key lessons learned from companies facing high levels of shareholder opposition.

To Fuel Growth, Companies Make a Case for Using Inducement Grants More Often

At the high-growth companies we work with, the use of new-hire "inducement grants" is on the rise. Our latest white paper, co-authored with Cooley LLP, presents new research on how technology and life sciences companies can best leverage inducement grants to compete for increasingly scarce talent, and the effect this has on equity burn rates.

Turnover Rates for Sales Employees Reach a Five-Year High

Voluntary turnover for sales employees at technology and life sciences companies is, once again, at a five-year high. With US companies reporting aggressive hiring plans, sales managers and HR professionals need to assess whether their current compensation plans can remain effective in an ever more competitive market for talent.

CEOs Sign Voluntary Governance Principles, but Emphasize Flexibility in Executive Pay

A set of high-level compensation and governance principles were released last month by a select group of business leaders representing a handful of America’s largest companies and mutual funds. The principles highlight the importance of individualized and well-articulated compensation plans but also take a position on a number of issues.

SEC Approves Nasdaq Rule Requiring Disclosure of "Golden Leash" Arrangements

The SEC recently approved a new Nasdaq rule, requiring disclosure of "Golden Leash" director compensation arrangements, which took effect August 1, 2016. Nasdaq's new rule requires disclosure of special payments to third party nominees to boards. It focuses largely on activist hedge fund nominees, and explicitly exempts most venture capital directors.

ISS Releases 2017 Policy Survey, Comments Due by August 30

ISS has opened up its annual policy survey for comments from the corporate community. The survey indicates ISS is considering several changes to its compensation voting policies across the globe. Issuers have until August 30 to submit comments.

Reliable Market Data is Critical in Wake of Massachusetts "Fair Pay" Law and Others Like It

Massachusetts recently became the first state to ban employers from asking job candidates for their salary history, including benefits and other compensation, which increases the importance of accurate market data as well as the benefits of a formal pay program.

Hot Topics Excerpt: Around the Globe, More Tech Firms Are Granting Retention Bonuses

In multiple markets around the world, the use of retention awards at technology companies is up dramatically from three years ago. As employee turnover, market volatility and competition from outside the technology sector continue to rise, creating long-term retention strategies will be key.

Sales Compensation is Rising, but Performance is Tracking Lower. What's Going On?

Since 2010, the compensation cost of sales as a percent of revenue has increased significantly at software companies, but fewer sales people are hitting their quotas. It's not a good look, and companies continue to increase quotas to justify rising expenses. We explain how to bring cost and performance back in balance.

Why a Mid-Year Sales Plan Assessment Will Ultimately Save Time

In the May 2016 issue of WorldatWork's Sales Compensation Focus newsletter, Radford's Scott Barton discusses how utilize a mid-year review to spot pain points in your sales compensation plan before real turbulence emerges.

How to Maintain a Relevant Peer Group in Fast-Moving Industries and Unstable Markets

Reviewing compensation peer groups is usually treated as a routine exercise. However, when your company or industry experiences significant changes or the stock market is highly volatile, a more rigorous review is prudent. Read our five tips for staying on top of your peer group game.

What Companies Should Know About New Employee Overtime Rules in the United States

New federal rules will greatly expand the percentage of US employees eligible for overtime pay. While technology and life sciences companies tend to have fewer employees who qualify as non-exempt relative to other sectors, the rules create unique challenges for every organization. Our latest client alert explains the rules and the types of questions HR managers should be asking.

Senior Technical Jobs that Offer an Alternative to Management Tracks are Evolving

Technology firms frequently create special executive-level positions, called Fellows or Senior Fellows, for key technologists who don't want to manage people. However, a number of companies are re-imaging these roles, and our data now shows that roughly half of Fellows and Senior Fellows actually manage employees.

Benefits Costs are the Missing Link between Compensation Spend and Total Rewards

The Radford Global Technology Survey now includes information on the total cost of benefits by job level in multiple countries. Our new article explores how this data helps HR professionals bridge the gap between measuring compensation spend and assessing the true cost of total rewards.

Is it Time to Ditch Your Salary Structure for Market Pricing? We Debate the Pros and Cons.

At the moment, most technology companies favor formal salary structures for administering base pay. However, in the hyper-competitive technology space, some of our clients forgo structures in favor of market-pricing. This allows them to be far more precise in setting pay, but there are clear pros and cons.

Will Today's Volatile Markets Bring Option Exchanges Back? What You Need to Know

Depending on what the markets do next, underwater stock option exchanges could be poised for a big comeback. Exchange programs are already quietly on the rise, but the governance landscape isn't as forgiving as it was in 2008 and 2009. Before taking action, it's important to take stock of where your company stands in a number of critical areas.

Before Expanding in a New Market, Take Time to Assess the Available Labor Pool with Analytics

In the technology sector, the distribution of workers by job function can vary significantly from one country to the next, and often by far larger degree than one might expect. This has huge implications for businesses looking to enter new markets and hire staff. Understanding the makeup of local talent pools is essential for companies thinking about growth.

Down Rounds are on the Rise, Forcing Pre-IPO Firms to Explore New Retention Strategies

As more pre-IPO companies face down investment rounds and falling valuations, it's incumbent on HR leaders to explore new retention strategies, including underwater option exchanges, special equity awards, retention bonuses and formal bonus plans. Our new article weighs the pros and cons of each of these measures.

Car Allowances Remain Common in Europe, Even as Perks are Increasingly Questioned

As European economies continue to struggle with low growth rates, perquisite practices face greater levels of scrutiny. Yet, new data from Radford shows that at least one long-time perk in Europe— the car allowance— remains fairly commonplace. And even where changes in practice are occurring, the rate of change is moderate.

More Companies Are Taking Steps to Protect Employee Earnings in Uncertain Markets

A growing number of technology companies in Russia, and neighboring countries, took meaningful steps in 2015 to assist employees with rising economic uncertainty, including one-time salary adjustments and special allowances. Read about our latest special survey results to learn more.

Director Pay Settlement Results in an Unprecedented "Director Say-on-Pay" Vote

Facebook recently settled a lawsuit on its director pay practices, and the terms of the settlement include an unprecedented agreement to hold regular director say-on-pay votes. Now we're all left to wonder if this will kick-off a new governance trend.

The Art & Science of Benchmarking: What Happens When Pay Doesn't Progress?

You might be surprised to know that market data on compensation doesn't always increase with each successive job level. When data "misbehaves" in this fashion, it's important to know how to diagnose the root cause and find an appropriate solution.

Glass Lewis Opens Data Verification Program to Issuers on First-Come, First-Serve Basis

Glass Lewis has opened corporate enrollment for its free data verification program, which allows issuers to verify the data that the proxy firm uses to make its proxy voting recommendations. Participation is limited so early enrollment is encouraged.

How Boards Can Guard Against Lawsuits Alleging Excessive Stock Awards

Shareholder lawsuits alleging that boards have awarded themselves too much equity got a boost this year from the Delaware court, which now says the business judgment rule may not apply. However, there are a number of steps directors can take to help protect themselves against a lawsuit.

Mind the Gap: Companies Frequently Exceed Merit Increase Budgets for Top Performers

The difference between companies' merit budget and overall higher salary budget is often cash reserved for exceptional raises for top performers. Yet, this figure is often underreported. This article explores the reasons why.

From Asia to Europe to the US, Expect to Pay an Equity Premium for Technical Talent

Across major global markets, employees in technical positions are more likely to be eligible for and receive long-term incentives compared to their colleagues in non-technical roles. And when it comes to the actual amount value, we also see a clear technical premium exists.

Data Digest: How China's Economic Situation Is Impacting Its Technology Workforce

China's economic slowdown is negatively impacting some industries, but we find the technology sector has remained resilient. A growing domestic field of companies has ramped up competition with multinationals — affecting workforce growth, employee turnover and salary increases.

Use These HR Disciplines to be an Essential Part of Sales Force Effectiveness

In the September 2015 issue of WorldatWork's Sales Compensation Focus newsletter, Radford's Scott Barton discusses how HR can be more involved in maximizing sales force effectiveness and productivity through three key areas of talent management.

Private Companies Redesign Their Employee Equity Plans as IPOs Near

Our latest study of shifts in compensation plans before and after technology and life sciences go public reveals interesting insights into pay strategies and reflects perceptions of good governance in the public markets.

Decoding the Meaning of Pre- and Post-IPO Equity Overhang Rates

Equity overhang rates at recently public companies are a clue to the overall health of equity compensation programs. Our five-year study provides valuable insight on how overhang levels shift as companies transition from a private to public company.

Getting a Grip on Sales Compensation Pay Mix

In the July 2015 issue of WorldatWork's Sales Compensation Focus newsletter, Radford's Scott Barton discusses what to consider when setting pay mix for job levels and how the ratio of guaranteed to at-risk pay influences quota achievement and total target compensation.

Is Your Global Account Sales Strategy Truly Global?

One of the biggest challenges for large, multi-national companies' sales operations is executing on an effective global account strategy. However, aligning different territories around a common global goal can be challenging, and having the right structure in place is tantamount to executing on your sales strategy.

Making Sense of High Sales Force Turnover

Sales force turnover is on the rise in many key global markets. In the US and UK, voluntary turnover is at a five-year peak. This is forcing forward-thinking HR and sales leaders to use creative preemptive measures to retain top sales talent.

What the SEC's Final CEO Pay Ratio Rules Mean for Companies

The SEC's final CEO pay ratio rule as adopted earlier this month has some key departures from the proposal, including a delayed implementation period and flexibility on calculating median employee pay.

Data Digest: Tech and Life Sciences Sectors Diverge in LTI Design

The inaugural article in our new Data Digest series explores a distinct but little talked about way that technology and life sciences companies are different in their design of long-term incentive plans. Data Digest explores the latest trends in Radford's extensive data from across the world.

With More Retirement-Ready Employees, Tech Companies Address Gaps in Plans

The wave of tech companies that went public in the 1990s with an emphasis on employee equity are seeing more and more of their employees reach retirement age. Against that backdrop, companies are facing a tough decision about what to do about unvested shares — and the decision isn't an easy one.

2015 Say-on-Pay Review for the Technology Sector

In this report, Radford examines five years of say-on-pay voting results for the technology sector compared to the broad Russell 3000. We also review the influence of proxy advisors, industry performance and top governance concerns.

Is Your Employee Equity Plan IPO-Ready?

In preparation for an upcoming IPO, one of the most important considerations for compensation and HR professionals is evaluation their employee equity incentive plan— which is strikingly different for public vs. private companies. In this article, we outline the top five areas of equity plans for employers to consider as they prepare for a public offering.

Managing Talent in the Age of Internet of Things (IoT)

Biotech companies have higher salary increases compared to the general life sciences sector and have increased their target cash positioning. This has allowed companies to keep voluntary turnover at bay and attract new talent to fuel their rapid growth. Our article examines the latest data for the red hot biotech industry.

Hot Topics Excerpt: Technology Firms Aim Higher for Engineers than Executives

How fierce is the competition for technical talent? Well, our latest research shows that technology companies now set the bar higher for engineers than executives, targeting pay levels above the market 50th percentile for technical roles more often than for executive officers. Read our latest report to learn more.

As the Race for Top Talent Intensifies, US Tech Firms Ratchet Up New-Hire Equity Awards

As corporate valuations climb, so too does the value of unvested equity awards. This makes it harder to recruit talent and drives demand for larger and larger new-hire equity grants. In our latest article, we unearth a little known pay metric to highlight the dramatic uplift in new-hire equity award sizes over the past five years.

When is it Time to Get Worried about High Sales Force Turnover?

Our recent article on sales force turnover at software companies turned a few heads and prompted a number of interesting questions from readers. With those inquiries in mind, we decided to dig deeper and explore the potential impact of sales rep turnover on revenue goals, as well as turnover rates across key US regions.

Software Sales Professionals are on the Move as the Technology Sector Booms

Voluntary turnover among sales professionals at technology firms is rising, with the highest rates at software companies. A number of factors are contributing to the increase: an improving job market, demand for cloud-based selling experience, and a growing field of innovative products. HR managers shouldn't feel defenseless, though. Find out what you can do to stem the turnover tide.

Accelerating Sales without Breaking the Bank

Most companies have sales commission accelerators in place. However, few are well-equipped to know if their accelerators are optimized to meet business needs. In this article, we explain how a data-driven approach can be used to design accelerator programs in-tune with both market trends and sales team performance.

Boards Face Pressure to Ban Accelerated Vesting, but Market Practices Tell a Different Story

The number of shareholder proposals calling for bans on the acceleration of equity after a change-in-control is on the rise. So, too, is shareholder support for these initiatives. Radford's recent survey of severance practices at technology and life sciences companies shows that equity acceleration is still the norm, but policies in this area are slowly evolving.

Global Job Leveling at Radford: A Tailor-Made Approach for Companies Driven by Innovation

Our clients in the technology and life sciences sectors share many traits in common: they are innovative, they grow fast, and they need to be flexible. These traits demand a new approach to global job leveling, one that easily scales as companies mature and also evolves as firms add or acquire new types of talent.

As the German Technology Market Heats Up, Global Rewards Benchmarking Becomes Critical

A new digital economy has arrived in Germany, and its impacting every business sectors. Consequently, engineers are in high demand, but a shortage of talent is forcing companies to recruit from outside markets. Big differences in total compensation levels and pay practices across Europe, the United States and Asia mean German companies need to up their global benchmarking game.

Getting Severance Right: An Overview of Current Policies and Practices at US Technology Companies

Radford's 2014 Severance & Change-in-Control Practices Survey provides detailed information on how technology companies treat involuntary termination and change-in-control (CIC) scenarios on an organization-wide basis. At their core, severance programs did not change dramatically since our 2011 survey; however, we still observed several meaningful trends worth noting.

Managing Compensation Programs in the Face of Russia's Sudden Currency Devaluation

Depressed by Western economic sanctions and a sharp drop in the price of crude oil, Russia's economy and currency have weakened considerably in the past few months. This dramatic change is prompting multi-national companies to consider quick adjustments to pay programs for employees in Russia. We recently surveyed clients to see how they are tackling this issue.

Like "Check Engine" Light, Use Compensation Cost of Sales to Look for Trouble

In the January 2015 issue of WorldatWork's Sales Compensation Focus newsletter, Radford's Scott Barton discusses how key business metrics can be used to determine if your sales incentive plans are properly designed and functioning at maximum efficiency. Measuring the rate of change in sales costs vs. revenue growth is a simple step that can open up a world of insight.

Relative Total Shareholder Return (TSR) Plan Design Across the Atlantic

Performance-based equity plans with Relative TSR metrics arrived in Europe well before they showed up in the US. As plan design practices begin to mature in the US market, it's time to take a fresh look at what we can learn from the European experience.

Tracking Employee Promotion Practices across China, India, the United Kingdom and the United States

It's common knowledge that promotions lead to engaged employees. And while promotion rates at technology firms in the US are up, the same can't be said everywhere. New research from Radford explores promotion practices in China, India, the UK and the US.

Time is Money: Exploring the Costs of Hiring a CFO in Preparation for an Initial Public Offering

For private technology and life sciences companies on the path to an IPO, does it matter when you hire a CFO? When it comes to their pay, the surprising answer is that it all depends on how you look at it. Read our latest article to find out why.

Deciphering the Latest Compensation Trends in India

When it comes to benchmarking pay, India is not an easy market. With shifting labor pools, highly uneven annual increases in fixed compensation, and stark differences in pay between local firms and multinationals, getting rewards right in India is a big challenge.

Restricted Stock Units (RSUs) Are Everywhere, But Are They Right For You?

For more than 10 years, the pendulum of equity compensation strategy has swung firmly in the direction of RSUs and away from stock options. Now it's time to ask a few hard questions: Is this shift in strategy working, and who wins and loses?

Taking Control of Your Company's Executive Compensation Narrative

It might be hard to fathom in a world so often dominated by complex legalese, but taking a proactive, marketing-minded approach to communicating your executive compensation program is increasingly the safest way to travel in a rocky compensation governance landscape.

Long-term Incentive Grant Communication in the Technology Sector

The increasing prevalence of restricted stock and performance shares are changing the way stock awards are communicated. In this EMEA Market Insights article we explore what is being communicated around equity awards and the method to do so.

Before Saying Goodbye to Performance Ratings, Consider This

As evidenced by numerous media headlines this year, when it comes to adding or removing performance ratings, there is no right answer. Nevertheless, a growing number of companies are considering a move away from performance ratings and/or ranking. Before taking the plunge at your company, consider these five issues.

Understanding Regional Pay Differences in the UK Technology Sector

As the global competition for technology sector talent reaches feverish heights, meaningful (and often overlooked) opportunities for labor cost differentiation exist within countries. This is particularly true in the UK, where regional differentials in pay for like technology jobs can easily range by +/-10%.

Is Your Equity Plan Ready to Go Public?

In the months leading up to an initial public offering (IPO), technology and life sciences companies often undertake a radical reimagining of their equity compensation programs. This process usually includes the adoption of new equity incentive and employee stock purchase plans.

Bonus Season Comes to Western Europe

Every year, bonus season brings with it an opportunity to explore cash incentive practices across the European technology sector. In this EMEA Market Insights article we explore the prevalence of various bonus plan types across western Europe, as well as expected funding levels for 2014.

Setting an Intelligent Sales Pay Mix Strategy

Setting an appropriate pay mix strategy for your sales compensation plan — the ratio of target total cash compensation that is attributed to base salary vs. target incentives — is a common pain point for growing companies aiming to maintain competitive sales compensation structures. This article explores common pitfalls and steps to take to address issues.

Sales Compensation Policies for Leaves of Absence

Let's imagine you have a high-performing sales account executive who needs to take an approved leave of absence (LOA); what's the right approach for handling their sales quota and sales credits while they are away? You need a solid policy that's both reasonable and legal.

Decoding Pre- and Post-IPO Equity Overhang Rates

How do you measure the health of an equity compensation program? More importantly, how to do you take such measurements while transitioning from private to public? The answer is overhang, but it comes in many flavors and changes dramatically after an initial public offering (IPO).

Executive Pay Not Immune to Proposed Tax Reforms

On February 21, 2014, House Ways and Means Committee Chairman Dave Camp introduced a discussion draft/blueprint of legislation (Tax Reform Act of 2014) that would cover a wide range of tax areas. It is very unlikely that all the items in the discussion draft will make their way into legislation, but there are several items in the discussion draft related to executive compensation worth monitoring.

Europe Leads All Regions for Workforce Stability

In a year when global employee turnover rates held steady across the technology sector, Radford's EMEA team dug deeper to look at turnover rates by region; discovering that turnover in Europe lagged well behind the rest of the globe.

Institutional Shareholder Services (ISS) Announces Changes to Key Global Corporate Governance Policies

Institutional Shareholder Services (ISS) has announced several important changes to its US and European policies governing executive compensation. Among other results, these changes could alter future testing outcomes under the CEO pay-for-performance assessment system currently used by ISS.

Proxy Season 2013: A Renewed Focus on Disclosure

A continued focus on key governance issues like pay-for-performance alignment and Say-on-Pay results has dramatically altered the environment in which we all operate, and companies will need to adjust accordingly. With proxy season 2013 arriving, Radford examines the current mix of internal and external issues influencing CD&A disclosure practices.

Economic Outlook, Employee Turnover, and Salary Increases

The global economy continues to struggle, weighed down by the faltering European recovery. Workforce trends data from Radford supports this outlook, with voluntary turnover remaining low, and constrained salary increase data.

ISS Releases Updated Industry Burn Rate Cap Tables for 2013

Institutional Shareholder Services (ISS) recently released an updated set of industry burn rate caps for 2013. The new caps, effective for shareholder meetings on or after February 1, cover both Russell 3000 and non-Russell 3000 companies in all industries.

Institutional Shareholder Services (ISS) Clarifies Its New Approach for Selecting Pay-for-Performance Peers

Institutional Shareholder Services (ISS) recently announced significant changes to the peer group selection process it uses for CEO pay-for-performance assessments. Typically, an announcement of this nature requires careful and measured consideration. However, in this case, there is an added sense of urgency, as ISS is providing companies with the opportunity to pre-submit their FY 2012 peer group.

Sales Compensation Trends - August 2012

This edition of Radford's Market Insight: August 2012 Sales Compensation Trends looks at the prevalence of car plans and the high voluntary turnover among the sales force.

Economic Outlook, Salary and Employee Turnover

Despite positive global growth in the beginning of 2012, growth estimates for 2012 have been revised slightly downwards. Read more about reward implications in Radford's Market Insight: July 2012 Trends.

Selecting the Best Approach for Responding to a Negative Say-on-Pay Recommendation

At the end of June, the SEC released final rules under Section 952 of the Dodd-Frank Act pertaining to Compensation Committee and compensation adviser independence. These new standards will govern the means by which Boards maintain Committee member independence, manage potential conflicts of interests and assess the impartiality of key advisers.

Mobilizing the Right Team to Respond to a Negative Say-on-Pay Recommendation

While there are no shortcuts for avoiding several days of hard work when proxy advisors send bad news your way, responding to their criticism through additional SEC disclosures and direct shareholder engagement can be a focused process if companies mobilize the right forces at the right time in the right manner.

New Legislation Eases the Path to an IPO

When President Obama signed the JOBS Act into law on April 5, his signature set in motion one of the most significant overhauls of the US initial public offering (IPO) system in recent history. With strong bipartisan support, this new bill creates a more streamlined approach for on-ramping companies through the IPO pipeline.

Sales Compensation Challenges - April 2012

Voluntary turnover remains high in the sales force and accurate quota setting is key.

Economic Outlook, Salary, and Employee Turnover - April 2012

Despite positive signs, the European economy remains exposed to downside risks during 2012 with unemployment continuing to rise.

Top Paying Technology Jobs in Germany

As a leading reward consultancy in the Technology and Life Science sectors, Radford monitors the main trends for key jobs in the Technology sector. With reference to our compensation data from nearly 340 technology companies in Germany we present a sample of our data which may be of interest to HR and Reward managers across the sector.

Economic Outlook, Salary, and Employee Turnover - March 2012

Growth estimates for 2012 have been revised slightly downwards. Read more about reward implications in this quarter's Radford Market Insight.

Sales Compensation Challenges - January 2012

As the economic recovery remains slow, structuring incentive plans and accurately measuring performance is key.

Economic Outlook, Salary, and Employee Turnover - January 2012

Across Europe, fears of a mild recession dampen 2012 forecasts.