NORTH AMERICA CHAPTER

Despite being one of the most marketable athletes in the world, Caitlin Clark will earn a modest $76,535 in her first year with the WNBA's Indiana Fever, which is standard for top rookies but starkly contrasts with the multimillion-dollar contracts of NBA counterparts. The WNBA players receive only about 10% of "basketball related income" compared to the NBA's 50%, leading many to play overseas to supplement their earnings. Although Clark’s high profile is drawing attention to these disparities, her substantial endorsement deals, including a potential $28 million contract with Nike, ensure a lucrative financial future.

A new study by S&P Global reveals that over a third of S&P 500 companies have monetary incentives tied to emissions reduction, though fewer have climate-related compensation for senior executives, particularly CEOs. Notably, energy companies stand out, with 48% linking CEO compensation to emissions reductions. However, while net zero commitments are increasing, particularly in the Utilities sector, there's a lack of ambitious near-term goals, raising challenges for rapid decarbonization.

Chipotle Mexican Grill is proposing a 50-for-1 stock split to make shares more accessible to its workers, aiming to enhance employee ownership and retention. With the company's stock price soaring, offering rewards like restricted stock units has become challenging due to the high share price, prompting the move towards a split. The planned split, subject to shareholder approval, could not only benefit employees but also potentially improve operational metrics like throughput, contributing to the company's long-term success.

Microsoft has taken a proactive step in addressing cybersecurity concerns by linking executive compensation to the company’s security performance, following recent high-profile attacks. The initiative, known as the Secure Future Initiative (SFI), aims to prioritize security and hold leaders accountable for meeting security plans and milestones. This strategic move reflects Microsoft's commitment to enhancing cybersecurity and fostering a culture of continuous improvement, as highlighted by Executive Vice President Charlie Bell and Chief Information Security Officer Igor Tsyganskiy.

Entrepreneur Sohail Prasad launched the Destiny Tech100 fund to provide access to shares in hot tech startups like Stripe, SpaceX, and OpenAI, which are typically not openly traded. However, controversy arose when some startups disputed the fund's ownership of their shares, leading to criticism and restrictions from platforms like Robinhood. Despite tensions, the market for private company stocks is booming, with platforms like Hiive and Augment facilitating billions in transactions, reflecting a growing interest in owning stakes in Silicon Valley startups despite the risks and challenges.

Joseph Blasi, Director of the Institute for the Study of Employee Ownership and Profit Sharing at Rutgers University, provides invaluable insights into the politics and potential of employee ownership within the contemporary economy.

Equity compensation is increasingly popular among employers as a means to attract and retain talent, with 72% of companies offering some form of it, according to a Morgan Stanley survey. Stock options, restricted stock units (RSUs), and employee stock purchase plans (ESPPs) are three common types of equity compensation, each with its own tax implications and considerations for employees. While these perks can offer potential financial rewards, there are risks involved, such as stock price fluctuations and tax complexities, prompting experts to advise careful planning and consideration of individual financial goals.

Fast-growing companies in tech and other sectors often implement stock plans without proper planning or oversight, leading to significant compliance risks, especially when operating in multiple countries. These companies must consider local tax, social security obligations, and regulatory complexities to avoid financial and administrative issues. Employee Stock Ownership Plans (ESOPs) and carefully managed stock plans offer valuable incentives for employees while aligning their interests with the company's success, provided the compliance challenges are adequately addressed.