Page 675 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

660 The Complete Guide to Executive Compensation

AMEX See American Stock Exchange.
amortization Recording as an expense, and thereby writing down, the cost of an intangible asset such
as patents.
AMT See alternative minimum tax.
analyst Person who evaluates data and makes recommendations based on the analysis.
anniversary date The date of employment, promotion, or other key event.
annual benefits statement Report of current and projected benefits specific to the recipient.
annual grants Action each year to award stock options, SARs, and/or stock awards to executives and
others.
annual incentive See incentive pay.
annualize Adjustment of a rate of return that is either less than or more than one year to an
annual rate.
annual meeting The yearly meeting of company shareholders to vote on election of directors and
other matters.
annual planning Action each year to prepare for future actions and events, including budgets.
annual report Financial condition of a corporation or of a benefit plan. The former is sent to com-
pany shareholders; the latter is sent to the IRS.
annual retainer A payment for a year, typically without adjustment for performance, such as an
annual amount for serving as a member of the board of directors.
annual review Action each year to determine if performance is consistent with expectations.
annual run rate See run rate.
annuitant A person receiving or entitled to receive an annuity.
annuity A payment that continues for a specified period (e.g., life).
apartments See company apartments.
APB See Accounting Principles Board.
APB 25 The principle that stated that the expense of stock issued to employees is based on the measure-
ment date (namely, the difference between the fair market value and what the employee pays).
applicable federal rate U.S. Treasury interest rates published monthly for calculating imputed
interest.
appreciation Increase in value of an asset.
appreciation right The legal right to receive an asset’s appreciation.
arbitrage Taking advantage of a price imbalance of an item in two places by simultaneously buying
at the low price and selling at the high price.
arbitrageur (also known as arb) An individual or organization who deals in arbitrage.
arbitration Disinterested individuals whose decision is called an award.
area differential An allowance to reflect increased cost of living in certain areas that is added
to salary.
arithmetic mean (average) See mean.
ARM See adjustable rate mortgage.
arm’s-length transaction A transaction between two or more impartial parties.
articles of incorporation See certificate of incorporation.
asked price The quoted lowest price for a security.