Issues Impacting Head of Tax Compensation

We have observed two primary issues impacting tax executive compensation we have studied closely and want to bring these issues to your attention. The focus of our study on the compensation paid to the Head of Tax in multinational corporations and the impact of Pay Transparency Laws and A.I. have on tax executive pay.

Pay Transparency Laws Impacting Compensation

State pay transparency laws require employers to disclose information about employee compensation when posting the jobs online. Pay transparency legislation requires employers to provide applicants with the salary range for the posted position and to post this information publicly so employees can see it.  Pay transparency is the practice of openly sharing compensation data on jobs. In many states, this legislation seeks to make it a requirement for employers. There are currently ten states that require (or will require) pay transparency: California, (the very first state to legislate and pass a pay transparency law), Colorado, Connecticut, Hawaii, Illinois, Maryland, Nevada, New York, Rhode Island, and Washington. In addition, states with proposed or pending pay transparency laws include Alaska, Kentucky, Maine, Massachusetts, Michigan, Missouri, Montana, New Jersey, Oregon, South Dakota, Vermont, Virginia, Washington, D.C., and West Virginia.

Pay transparency isn’t limited to how much employees get paid, either. Certain state laws give current employees insight into what they could earn with their current employer. The general belief is a tax executive might consider options with other employers if they can see that the salary ceiling transparency for their current job does not match up with the compensation offered by other employers in a similar role.

In a Harvard Business Review study on Compensation and Benefits, it states:

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