Category: U.S. Economy

The basics of Phantom Stock issues

incentive-phantom-stock-michae_10762769What is it?: Phantom stock is a form of compensation where a company promises to pay cash at some future date, in an amount equal to the market value of a number of shares of its stock.  The recipent does not receive actual stock.

How does it work?  The payout on Phantom Stock will increase if the stock price rises, and decrease if the stock falls, but without the recipient actually receiving any stock. Like other forms of stock-based compensation plans, phantom stock broadly serves to encourage employee retention, and to align the interests of recipients and shareholders.

Phantom stock is essentially a cash bonus plan, although some plans pay out the benefits in the form of shares. Phantom stock is favored by closely held or family-owned companies who want to provide incentives to management and other employees without granting them equity.

How is it taxed?  When the payout is made, it is taxed as ordinary income to the employee and is deductible to the employer. Generally, phantom plans require the employee to become vested, either through seniority or meeting a performance target.

Sources: 
The National Center of Employee Ownership, http://www.nceo.org/articles/phantom-stock-appreciation-rights-sars)
http://en.wikipedia.org/wiki/Phantom_stock
Pictures and images: http://slgsecurities.files.wordpress.com/2012/09/incentive-phantom-stock-michae_10762769.jpg

 

How long should it take the plaintiff to obtain comparable re-employment?

Title Page -2013 Back Pay and Front Pay CalculationsThat is a central question in many wrongful employment termination lawsuits.  The plaintiff’s back and front pay earnings claims revolve around the answer to this question.  The length of an individual’s job search time depends on a number of factors.  These factors include the individual’s work background, type of job, number of other qualified job searchers, and geographical area.  The individual’s job search methods and efforts are also important factors.

In our work we study these types of job search factors in conjunction with the number of job searchers and employer demand for the relevant job position.

We have studied the labor market conditions for many job positions.  In recent analyses we have studied the labor market for accountants, network computer administrators, and operations managers.  The number of statewide job openings and searchers per job openings is shown in the table below.  Searchers per job openings ratios that are less than 1.0 indicate that there are more job openings than job searchers for the particular job.  Job searcher per job openings ratios greater than 1.0 indicate that there are more job searchers than job openings for the particular job..

jobopeningstable

Methodology

Number of job openings (Labor demand by employers): Based on the distribution of specific job openings in an industry, city and occupational classification.  Data sources include U.S. Bureau of Labor Statistics databases:  JOLT, CPS, and LAUS.

Number of job searchers (Labor supply by individuals): Based on geographical area(s) labor force, percentage of the labor force in each occupation, unemployment rate, and an unemployment rate adjustment factor associated with the occupation.  Data sources include U.S. Bureau of Labor Statistics databases:  JOLT, CPS, and LAUS.

Learn more read the article.

 

 

Economic impact of F1 race week in Austin, Texas

F1 – Austin

F1 weekend in Austin is fast approaching.  To date, the definitive study for the economic impact of F1 on the Austin economy as been performed by Dr. Hoyte of TexasEconomicImpact.com

In total, Dr. Hoyte estimates that out‐of‐state fan spending is expected to reach $201 on the Formula One event. .. he estimates
that this level of direct event spending will generate $11.6 million in tax revenues from the gain
to the state under the applicable taxes allowed to be deposited into the Major Event Trust Fund
in support of this event.

Spotlight on Oil and Gas industry

In 2011 (the latest available year), the U.S. BEA reports that the total value of goods and services produced in the Oil and Gas industry was $30.68 Billion and approximately 170,000 people worked in the industry.  The value of the goods and services produced in the Oil and Gas industry more than doubled, even after accounting for inflation since 1998.

U.S. Census video on using block level data from the American Community Survey

U.S. Census provides tutorial on using block level demographic data from the American Community Survey (ACS). Block level data is data at the lowest level of aggregation as opposed to a census tract, zip code, or higher. A block may be as small as a few streets in a neighborhood.

Block level data is provided only in the 5 year summary file and for certain tables. The data is quite useful for a number of business, commercial, and research purposes.

Earnings from manufacturing jobs in U.S continue to rise

Multi-ethnic workers wearing hardhats
Manufacturing on the rise in U.S.

Source: U.S. Department of Commerce, Economics and Statistics Adminstration

U.S.  Department of Commerce reports manufacturing wages and employment continues to rise the U.S. The new study uses a relatively new data source, the Quarterly Workforce Indicators (QWI), to analyze the earnings of new hires relative to incumbent workers in both manufacturing and non-manufacturing.

They find that new hires in the manufacturing sector earn more than new hires in other industries and have done particularly well since the recession began.

Highlight from the study include:

  • New hires in manufacturing enjoy an earnings premium relative to other new hires.  T
  • At the end of 2011, the ratio of new hire earnings to incumbent earnings was about 8 percentage points higher in manufacturing than in other industries.
  • Over time, the earnings of new hires relative to incumbents have been consistently higher in manufacturing.
  • Since the recession began, real average earnings for new hires in manufacturing grew 3.5 percent, while earnings of incumbents in manufacturing grew about 2.4 percent.

Seyfarth and Shaw blog discusses CA Brinker meal case in light of recent court opinions

Seyfarth and Shaw attorneys, John R. Giovannone and Brandon R. McKelvey , in their blog series, The Battle After Brinker, explore the current controversy over Brinker and what it means for employers and employees in California.

They discuss Benton v. TNS  decision  which reversed and remanded a trial court order that had denied class certification to a large class of telecommunication workers.

John R. Giovannone 

 

 

Studying labor market data for U.S. foreign born workers

Detailed data and the underlying micro data can be found at;

http://www.census.gov/population/foreign/

Two sources of information are:

Current Population Survey Data on the Foreign-Born Population

Detailed tables on the foreign-born population in the United States from the Current Population Survey shown by a wide range of characteristics including age, sex, marital status, employment status, occupation, industry, income, earnings, poverty status, household type, size and tenure, and metropolitan status

http://www.census.gov/population/foreign/data/cps.html

American Community Survey Data on the Foreign-Born Population

http://www.census.gov/population/foreign/data/acs.html