Question 1

Which of the following stock options entitle an executive to purchase company stock in the future for a predetermined price?

Accepted Answer

A) nonstatutory stock options 
B) incentive stock options 
C) restricted stock options 
D) phantom stock options 
A) nonstatutory stock options 
B) incentive stock options 
C) restricted stock options 
D) phantom stock options

Question 2

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 3

These rights provide employees with an opportunity to purchase a number of stocks at a designated price within a specified period of time.

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 4

A short-term incentive plan would most likely be used for which company employee?

Accepted Answer

A) a sanitation worker 
B) a new employee in training 
C) a mid-level manager 
D) the company's CEO 
A) a sanitation worker 
B) a new employee in training 
C) a mid-level manager 
D) the company's CEO

Question 5

The concept that individuals evaluate their accomplishments by comparing themselves to similar individuals is based on ________ theory.

Accepted Answer

The answer of The concept that individuals evaluate their accomplishments...

Question 6

The SEC requires compensation information on the CEO and how many of the highest paid executives?

Accepted Answer

A) 10 
B) 7 
C) 4 
D) 2 
A) 10 
B) 7 
C) 4 
D) 2

Question 7

What was the median annual earnings for all U.S.civilian workers in 2009?

Accepted Answer

A) $45,790 
B) $51,980 
C) $46,120 
D) $41,778 
A) $45,790 
B) $51,980 
C) $46,120 
D) $41,778

Question 8

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 9

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 called

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 10

What is the term used when a company offers stock to its employees?

Accepted Answer

A) stock allocation 
B) stock option 
C) stock grant 
D) stock disposition 
A) stock allocation 
B) stock option 
C) stock grant 
D) stock disposition

Question 11

What does the IRS use the term "key employees" for?

Accepted Answer

A) for non-discrimination rules in retirement benefits 
B) for non-discrimination rules in health insurance benefits 
C) to determine the necessity of top-heavy provisions in employer-sponsored qualified retirement plans 
D) to determine the necessity of top-heavy provisions in employer-sponsored health insurance plans 
A) for non-discrimination rules in retirement benefits 
B) for non-discrimination rules in health insurance benefits 
C) to determine the necessity of top-heavy provisions in employer-sponsored qualified retirement plans 
D) to determine the necessity of top-heavy provisions in employer-sponsored health insurance plans

Question 12

What is the advantage of compensation deferment until retirement for a CEO?

Accepted Answer

A) The CEO can benefit from interest rates until retirement. 
B) After retirement,the company's stock value will probably be higher. 
C) The CEO's income taxes will probably be lower after retirement,so that deferring payment should lead to lower taxation. 
D) The CEO will have enough time to make progress on reaching the company's strategic goals. 
A) The CEO can benefit from interest rates until retirement. 
B) After retirement,the company's stock value will probably be higher. 
C) The CEO's income taxes will probably be lower after retirement,so that deferring payment should lead to lower taxation. 
D) The CEO will have enough time to make progress on reaching the company's strategic goals.

Question 13

The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures,Inc.,which means she has at least one of which of the following qualifications in the preceding year?

Accepted Answer

A) 1% owner in the top paid employee group 
B) 5% owner in the top paid employee group 
C) made over $50,000 
D) made over $75,000 
A) 1% owner in the top paid employee group 
B) 5% owner in the top paid employee group 
C) made over $50,000 
D) made over $75,000

Question 14

A ________ stock plan is an arrangement whereby executives receive a bonus that is equivalent to either the value of company shares or the increase in that value over time.

Accepted Answer

The answer of A ________ stock plan is an arrangement...

Question 15

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

Accepted Answer

President Barack Obama signed the Wall S

Question 16

Using this executive compensation theory,shareholders negotiate the compensation contracts with the executive in hopes of aligning the executive's interests with theirs.

Accepted Answer

A) agency 
B) tournament 
C) social comparison 
D) strategic 
A) agency 
B) tournament 
C) social comparison 
D) strategic

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

This type of executive bonus is based on a bonus pool that is determined by a fixed-formula that is not determined by the executive's performance.

Accepted Answer

A) target plan 
B) predetermined allocation 
C) performance-contingent 
D) discretionary 
A) target plan 
B) predetermined allocation 
C) performance-contingent 
D) discretionary

Question 19

Company stock shares are the main form of executives' ________ compensation.

Accepted Answer

The answer of Company stock shares are the main form...

Question 20

Which executive bonus amount varies with the extent to which a pre-established minimum performance level is met?

Accepted Answer

A) target plan 
B) predetermined allocation 
C) performance-contingent 
D) discretionary 
A) target plan 
B) predetermined allocation 
C) performance-contingent 
D) discretionary

Which of the following stock options entitle an executive to purchase company stock in the future for a predetermined price?

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.

These rights provide employees with an opportunity to purchase a number of stocks at a designated price within a specified period of time.

A short-term incentive plan would most likely be used for which company employee?

The concept that individuals evaluate their accomplishments by comparing themselves to similar individuals is based on ________ theory.

The SEC requires compensation information on the CEO and how many of the highest paid executives?

What was the median annual earnings for all U.S.civilian workers in 2009?

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

What is the term used when a company offers stock to its employees?

What does the IRS use the term "key employees" for?

What is the advantage of compensation deferment until retirement for a CEO?

The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures,Inc.,which means she has at least one of which of the following qualifications in the preceding year?

A ________ stock plan is an arrangement whereby executives receive a bonus that is equivalent to either the value of company shares or the increase in that value over time.

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

Using this executive compensation theory,shareholders negotiate the compensation contracts with the executive in hopes of aligning the executive's interests with theirs.

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

This type of executive bonus is based on a bonus pool that is determined by a fixed-formula that is not determined by the executive's performance.

Company stock shares are the main form of executives' ________ compensation.

Which executive bonus amount varies with the extent to which a pre-established minimum performance level is met?

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

Employer-Sponsored Retirement Plans and Health Insurance Programs

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 12: Compensating Executives

Which of the following stock options entitle an executive to purchase company stock in the future for a predetermined price?

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.

These rights provide employees with an opportunity to purchase a number of stocks at a designated price within a specified period of time.

A short-term incentive plan would most likely be used for which company employee?

The concept that individuals evaluate their accomplishments by comparing themselves to similar individuals is based on ________ theory.

The SEC requires compensation information on the CEO and how many of the highest paid executives?

What was the median annual earnings for all U.S.civilian workers in 2009?

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

What is the term used when a company offers stock to its employees?

What does the IRS use the term "key employees" for?

What is the advantage of compensation deferment until retirement for a CEO?

The IRS considers Sylvia to be a highly compensated employee for Beautiful Pictures,Inc.,which means she has at least one of which of the following qualifications in the preceding year?

A ________ stock plan is an arrangement whereby executives receive a bonus that is equivalent to either the value of company shares or the increase in that value over time.

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

Using this executive compensation theory,shareholders negotiate the compensation contracts with the executive in hopes of aligning the executive's interests with theirs.

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

This type of executive bonus is based on a bonus pool that is determined by a fixed-formula that is not determined by the executive's performance.

Company stock shares are the main form of executives' ________ compensation.

Which executive bonus amount varies with the extent to which a pre-established minimum performance level is met?

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

Employer-Sponsored Retirement Plans and Health Insurance Programs

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