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In effect from this employee location shift, employers were surveyed to assess whether compensation would be adjusted. According to Pearl Meyer’s report, 4.3 percent of companies surveyed said they would reduce employee cash compensation if they moved to a lower-cost geographic area, while 56.5 percent said they would not.
“Compensation strategies are facing greater scrutiny, not only as a social issue (the S in ESG) but also as companies struggle with a labor shortage. In a 2021 Pearl Meyer survey, nearly half of respondents (47%) had experienced higher than usual employee turnover,” Corporate Compliance Insights reported.
“CEOs who don’t receive annual equity awards are still likely to feel the hit when share prices plummet, since many of those executives already own shares issued through up-front grants that are meant to last many years,” said Aalap Shah, managing director, Pearl Meyer.
“It would be unusual for a firm to award or reprice options so soon before selling itself in a deal that made those options worthless,” said Robert James, managing director, Pearl Meyer.
“Total [salary] increases for publicly traded companies are more modest than private companies, likely because public firms may utilize other vehicles to reward employees including more widespread equity programs,” Agenda reported based on Pearl Meyer's salary survey.