Exam 8: Variable Pay, Executive Compensation, and Benefits

Linda works in a company that pays for the medical insurance of all its employees. However, every time she visits her physician, she is charged $25. Her medical insurance covers the rest of the fee. This is an example of:

List the three basic assumptions that the philosophical foundation of variable pay plans rest on.

Legally required benefits make up more than half of the total cost of benefits.

The most common means of providing individual variable pay are profit sharing plans and employee stock plans.

Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

Why are employee contributions to health plans in companies increasing?

John is a part-time employee in a publishing company. Is he eligible to receive benefits?

During times of widespread economic hardship:

Profit sharing distributes some portion of organizational profits to employees.

Unpaid leaves of absence generally do not cost the firm much beyond continued benefits for the employee on leave.

Organizations rarely view benefits as an effective retention tool because employees generally have very little understanding of the benefits provided by their employers.

Explain perquisites.

Workers cannot be asked to make financial contributions for coverage under workers' compensation programs.

What are employee stock ownership plans?

Stock option plans give employees the right to purchase:

Clara, a receptionist, goes to work despite being sick to earn extra pay for not taking any sick leave. The extra pay she'll receive is called:

Every company is required to pay an unemployment tax that is based on the:

What are the family oriented benefits offered by employers? Which of these are mandated by the federal government?

Employee benefits can be constructively viewed as a(n):

The federal government mandates a minimum of two weeks' severance pay for older employees who are asked to retire early.