The CFO’s Guide To Navigating Pay Transparency And Compensation Fairness |
Companies need to find the right employees, but they also need to pay them the right amount, which can be a challenge. Even with less job hopping in an uncertain economy and cuts taking place across industries, pay that’s too low is still a reason for someone to leave their job, or feel less loyal to it.
CFOs constantly work to figure out that math. I talked to Philip Watson, CFO of data company Payscale, about strategies to support your employees and your budget. An excerpt from our conversation is later in this newsletter.
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Kevin Warsh will chair his first meeting of the Federal Reserve Open Market Committee today, and it’s very unlikely to deliver the interest rate cut President Donald Trump wants, writes Forbes senior contributor Simon Moore. According to CME FedWatch, 99.6% of analysts expect no change to the 3.5% to 3.75% baseline interest rate at the meeting. Figures from the Bureau of Labor Statistics showed 4.2% inflation in May compared with a year earlier, the highest rate in three years. And while the bulk of the inflation comes from energy and food costs elevated by the Iran war, core inflation still reached 2.9%, above the Federal Reserve’s preferred 2% rate. Forbes senior contributor Simon Moore writes this kind of inflation sets the stage for the Federal Reserve to raise interest rates later this year—though how Warsh guides the Fed through those decisions should become clearer after this week’s meeting.
Consumers may be far from the policy wrangling, but it’s apparent they’re having a rough time—and aren’t getting much sympathy from policymakers. After last week’s inflation report, President Donald Trump told reporters, “I love the inflation,” and said it would fall as soon as an agreement to end the Iran war is signed. Such an agreement appears to be on the table for Friday, but details remain unclear, and many are skeptical it will make a difference in the short-term economy.
Another long-term economic issue moved into public view this week. A critical Social Security fund will start to run out of money in 2032—years earlier than previously expected—unless Congress makes changes to shore up the program. The annual Social Security Trustees Report projects an automatic 22% benefit cut starting in six years, writes Forbes senior contributor Teresa Ghilarducci. So far, Congress has responded with calls for reform and finger-pointing, but no single comprehensive plan has yet emerged.
Since SpaceX’s blockbuster IPO last Friday, the space exploration, satellite connectivity, AI and social networking behemoth has raised more than $85 billion, with its share price surging 19% in its first two days of trading. CEO Elon Musk became the........