Page 676 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Glossary 661

ASO See administrative services only.
asset An item to which a value can be ascribed; it could be physical (e.g., building), financial
(e.g., cash), and/or intellectual (e.g., people’s knowledge).
asset allocation Distribution of funds among various asset categories.
asset allocation model Formula to determine appropriate asset allocation.
asset play Purchase of a company’s stock in the belief it has undervalued assets (e.g., land).
asset revision Following plan termination, the excess of funds needed to pay accrued obligations.
asset sale When purchaser acquires only identified assets (minus related liabilities). An example
would be the acquisition of a product only (no employees or fixed assets).
asset turnover Net sales divided by total assets.
asset value Net assets (total assets minus current liabilities).
assignment The transfer of the rights of ownership.
assignment expenses Reimbursement of a portion of moving expenses by a new hire to join
a company.
assignment of benefits Transfer of benefits to a third party.
athletic club memberships Membership in the name of an individual or company (permitting
executive use) for tennis, squash, and other events.
athletic programs Company-sponsored events on or near company facilities.
ATM Automated teller machine.
attendance program Payment for a specified period of perfect attendance.
attestation The declaration by a person of the number of shares of company stock owned, thereby
avoiding having to surrender the shares to exercise a stock option.
audio care insurance Reimbursement for audio examinations and necessary corrective devices.
audit A verification of the accuracy of an individual’s or organization’s records by either someone
within the organization (internal audit) or an independent reviewer (external audit).
audit committee A committee of the board of directors responsible for ensuring accuracy of company
financial reports.
auditor One who conducts audits.
audit report A report by the auditor of the findings of the audit.
audit trail The history of transitions that may later be investigated.
auto insurance Payroll deduction for low-cost, mass merchandise coverage.
automobiles See company cars.
average The mean, median, or mode of data.
average annual run rate Average annual run total divided by total shares outstanding.
average annual run total Yearly average number of shares used for incentive plans.
award An intrinsic or extrinsic form of recognition.

baby bond Bond with face value of less than $1,000.
backdating Making an action retroactive to an earlier date, such as a stock option grant date.
backending Deferring sales and/or expenses to a later period. Opposite of loading.
backward vesting When rights can occur sooner than the stated vesting period if a specified per-
formance target is achieved. See also performance-accelerated stock option.