Question 1

Which government agency provides the criteria for defining executive status?

Accepted Answer

A) Securities and Exchange Commission 
B) U.S. Department of Labor 
C) Internal Revenue Service 
D) Dodd-Frank Commission 
A) Securities and Exchange Commission 
B) U.S. Department of Labor 
C) Internal Revenue Service 
D) Dodd-Frank Commission C

Question 2

XYZ Pharmaceuticals recently announced that the clinical trials for a cancer drug failed to cure the illness.This announcement led to a dramatic decrease in the stock value of the company.The company hired a new CEO two years ago when the clinical trials for this drug had already initiated.Which one of the following is true about the compensation of the CEO of XYZ Pharmaceuticals?

Accepted Answer

A) The CEO should receive lower compensation since shareholder returns have been declining. 
B) The CEO was not involved in the decision of the failed initiative; therefore he/she should not receive lower compensation. 
C) Each company handles this situation differently. 
D) The compensation of this CEO depends only on pretax profit margins. 
A) The CEO should receive lower compensation since shareholder returns have been declining. 
B) The CEO was not involved in the decision of the failed initiative; therefore he/she should not receive lower compensation. 
C) Each company handles this situation differently. 
D) The compensation of this CEO depends only on pretax profit margins. C

Question 3

Which of the following arguments do labor unions use regarding the substantial pay discrepancies between CEOs and non CEOs?

Accepted Answer

A) Discrepancies are socially unjust and promote economic inequality. 
B) Discrepancies contribute to labor strikes. 
C) Discrepancies undermine global competitiveness. 
D) Discrepancies decrease which promotes effective companies seek to recruitment and retention. 
A) Discrepancies are socially unjust and promote economic inequality. 
B) Discrepancies contribute to labor strikes. 
C) Discrepancies undermine global competitiveness. 
D) Discrepancies decrease which promotes effective companies seek to recruitment and retention. A

Question 4

Which of the following are the two main components of current core compensation?

Accepted Answer

A) base pay and bonuses 
B) base pay and legally required benefits 
C) bonuses and legally required benefits 
D) base pay and discretionary benefits 
A) base pay and bonuses 
B) base pay and legally required benefits 
C) bonuses and legally required benefits 
D) base pay and discretionary benefits

Question 5

Discuss the three key provisions of the Dodd-Frank Act that apply to setting executive compensation.

Accepted Answer

President Barack Obama signed the <b>Wal

Question 6

Which legally required document reveals detailed information about the compensation of the CEO and named executive officers (NEOs)?

Accepted Answer

A) company's annual report 
B) compensation and benefits scorecard 
C) definitive proxy statement (DEF 14(
A) ) 
D) say-on-pay summary statement 
A) company's annual report 
B) compensation and benefits scorecard 
C) definitive proxy statement (DEF 14(
A) ) 
D) say-on-pay summary statement

Question 7

The recently appointed CEO of XYZ Inc.uses a luxury summerhouse owned by the company for rest and relaxation with his family as well as a place to invite important clients before a lucrative business deal.XYZ Inc.also provides a membership to an exclusive country club to its CEO.These kinds of benefits offered to CEOs are known as which of the following?

Accepted Answer

A) discretionary bonuses 
B) perquisites 
C) golden parachutes 
D) clawback provisions 
A) discretionary bonuses 
B) perquisites 
C) golden parachutes 
D) clawback provisions

Question 8

Executives receive ________ as the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option.

Accepted Answer

The answer of Executives receive ________ as the difference between...

Question 9

The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures,Inc.,which means that she met which one of the following criteria (assume that the previous year was 2015)?

Accepted Answer

A) either a current annual salary of more than $170,000; and, in the previous year, a 5% owner or a 1% owner of the employer's business whose annual pay was greater than $150,000 
B) either an annual salary of more than $170,000; or, in the previous year, a 5% owner or a 1% owner of the employer's business whose annual pay was greater than $150,000 
C) an annual salary exceeding $50,000 
D) an annual salary less than $170,000 
A) either a current annual salary of more than $170,000; and, in the previous year, a 5% owner or a 1% owner of the employer's business whose annual pay was greater than $150,000 
B) either an annual salary of more than $170,000; or, in the previous year, a 5% owner or a 1% owner of the employer's business whose annual pay was greater than $150,000 
C) an annual salary exceeding $50,000 
D) an annual salary less than $170,000

Question 10

What was the median annual earnings for all U.S.civilian workers in 2014?

Accepted Answer

A) $47,230 
B) $51,980 
C) $46,230 
D) $41,778 
A) $47,230 
B) $51,980 
C) $46,230 
D) $41,778

Question 11

In May 2014,the typical CEO earned approximately how much more annually than fast food cooks?

Accepted Answer

A) 100 times more 
B) 120 times more 
C) 160 times more 
D) approximately 180 times more 
A) 100 times more 
B) 120 times more 
C) 160 times more 
D) approximately 180 times more

Question 12

After the recent merger of ABC and XYZ Airlines,the former CFO of XYZ Airlines,John,lost his employment in the newly merged airline.Which executive compensation agreement is customary in such circumstances?

Accepted Answer

A) stock buyout plans 
B) clawback awards 
C) platinum parachutes 
D) golden parachutes 
A) stock buyout plans 
B) clawback awards 
C) platinum parachutes 
D) golden parachutes

Question 13

Which type of plans provide an executive with ownership stakes in the company through a variety of mechanisms,including stock option plans and stock purchase plans?

Accepted Answer

A) equality plans 
B) equity plans 
C) golden parachutes 
D) profit sharing plans 
A) equality plans 
B) equity plans 
C) golden parachutes 
D) profit sharing plans

Question 14

Under SEC rules,which of the following is true?

Accepted Answer

A) Shareholders may be subject to personal liability for paying excessive executive compensation. 
B) Publicly held corporations must disclose executive compensation information to shareholders, but not the public. 
C) Board of director members can sue a corporation for excessive executive compensation. 
D) Board of director members may be subject to personal liability for paying excessive executive compensation. 
A) Shareholders may be subject to personal liability for paying excessive executive compensation. 
B) Publicly held corporations must disclose executive compensation information to shareholders, but not the public. 
C) Board of director members can sue a corporation for excessive executive compensation. 
D) Board of director members may be subject to personal liability for paying excessive executive compensation.

Question 15

Pertaining to CEO compensation,under classic economic theory,which of the following is true?

Accepted Answer

A) The price is obtained through negotiations that are at arm's length. 
B) The CEO names her price. 
C) Compensation is based on a market survey and job evaluation. 
D) The board of directors set CEO compensation. 
A) The price is obtained through negotiations that are at arm's length. 
B) The CEO names her price. 
C) Compensation is based on a market survey and job evaluation. 
D) The board of directors set CEO compensation.

Question 16

As CEO,Duane was granted stock options that do not require him to exercise them to receive income.Which of the following plans is it?

Accepted Answer

A) stock appreciation rights 
B) discount stock 
C) restricted stock 
D) golden parachute 
A) stock appreciation rights 
B) discount stock 
C) restricted stock 
D) golden parachute

Question 17

Shareholders' interests are represented by a ________,who weigh the pros and cons of top executives' decisions.

Accepted Answer

The answer of Shareholders' interests are represented by a ________,who...

Question 18

Which of the following refers to the sale of stock by the stockholder?

Accepted Answer

A) stock option 
B) stock grant 
C) disposition 
D) exercise of one's grant 
A) stock option 
B) stock grant 
C) disposition 
D) exercise of one's grant

Question 19

The SEC's Summary Compensation Table contains data covering how many years?

Accepted Answer

A) 3 
B) 5 
C) 7 
D) 10 
A) 3 
B) 5 
C) 7 
D) 10

Question 20

In the end,Yolanda beat Tristen and Michel in a series of competitions among top-level managers to become CEO of National LemGlass.Which compensation theory did the company probably use?

Accepted Answer

A) tournament 
B) competition 
C) comparison 
D) agency 
A) tournament 
B) competition 
C) comparison 
D) agency

Which government agency provides the criteria for defining executive status?

Which of the following arguments do labor unions use regarding the substantial pay discrepancies between CEOs and non CEOs?

Which of the following are the two main components of current core compensation?

Discuss the three key provisions of the Dodd-Frank Act that apply to setting executive compensation.

Which legally required document reveals detailed information about the compensation of the CEO and named executive officers (NEOs)?

Executives receive ________ as the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option.

The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures,Inc.,which means that she met which one of the following criteria (assume that the previous year was 2015)?

What was the median annual earnings for all U.S.civilian workers in 2014?

In May 2014,the typical CEO earned approximately how much more annually than fast food cooks?

After the recent merger of ABC and XYZ Airlines,the former CFO of XYZ Airlines,John,lost his employment in the newly merged airline.Which executive compensation agreement is customary in such circumstances?

Which type of plans provide an executive with ownership stakes in the company through a variety of mechanisms,including stock option plans and stock purchase plans?

Under SEC rules,which of the following is true?

Pertaining to CEO compensation,under classic economic theory,which of the following is true?

As CEO,Duane was granted stock options that do not require him to exercise them to receive income.Which of the following plans is it?

Shareholders' interests are represented by a ________,who weigh the pros and cons of top executives' decisions.

Which of the following refers to the sale of stock by the stockholder?

The SEC's Summary Compensation Table contains data covering how many years?

In the end,Yolanda beat Tristen and Michel in a series of competitions among top-level managers to become CEO of National LemGlass.Which compensation theory did the company probably use?

Strategic Compensation: a Component of Human Resource Systems

Contextual Influences on Compensation Practice

Traditional Bases for Pay: Seniority and Merit

Incentive Pay

Person-focused Pay

Building Internally Consistent Compensation Systems

Building Market-competitive Compensation Systems

Building Pay Structures That Recognize Individual Contributions

Discretionary Benefits

Legally Required Benefits

Compensating the Flexible Work Force: Contingent Employees and Flexible Work Schedules

Compensation Expatriates

Pay and Benefits Outside the United States

Challenges Facing Compensation Professionals

Filters

Exam 11: Compensating Executives

Which government agency provides the criteria for defining executive status?

Which of the following arguments do labor unions use regarding the substantial pay discrepancies between CEOs and non CEOs?

Which of the following are the two main components of current core compensation?

Discuss the three key provisions of the Dodd-Frank Act that apply to setting executive compensation.

Which legally required document reveals detailed information about the compensation of the CEO and named executive officers (NEOs)?

Executives receive ________ as the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option.

The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures,Inc.,which means that she met which one of the following criteria (assume that the previous year was 2015)?

What was the median annual earnings for all U.S.civilian workers in 2014?

In May 2014,the typical CEO earned approximately how much more annually than fast food cooks?

After the recent merger of ABC and XYZ Airlines,the former CFO of XYZ Airlines,John,lost his employment in the newly merged airline.Which executive compensation agreement is customary in such circumstances?

Which type of plans provide an executive with ownership stakes in the company through a variety of mechanisms,including stock option plans and stock purchase plans?

Under SEC rules,which of the following is true?

Pertaining to CEO compensation,under classic economic theory,which of the following is true?

As CEO,Duane was granted stock options that do not require him to exercise them to receive income.Which of the following plans is it?

Shareholders' interests are represented by a ________,who weigh the pros and cons of top executives' decisions.

Which of the following refers to the sale of stock by the stockholder?

The SEC's Summary Compensation Table contains data covering how many years?

In the end,Yolanda beat Tristen and Michel in a series of competitions among top-level managers to become CEO of National LemGlass.Which compensation theory did the company probably use?

Strategic Compensation: a Component of Human Resource Systems

Contextual Influences on Compensation Practice

Traditional Bases for Pay: Seniority and Merit

Incentive Pay

Person-focused Pay

Building Internally Consistent Compensation Systems

Building Market-competitive Compensation Systems

Building Pay Structures That Recognize Individual Contributions

Discretionary Benefits

Legally Required Benefits

Compensating the Flexible Work Force: Contingent Employees and Flexible Work Schedules

Compensation Expatriates

Pay and Benefits Outside the United States

Challenges Facing Compensation Professionals

Filters