Page 683 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

668 The Complete Guide to Executive Compensation

Certified Public Accountant (CPA) A person who has passed the uniform requirements covering
accounting and related items.
CFO See chief financial officer.
chair The individual responsible for running a meeting. It is synonymous with chairperson and
chairman.
chair of the board See chair.
chair of the compensation committee See chair.
change in control Typically this is when a stated percentage of the shares of the company
are acquired by an individual or organization. When this happens it often frees up certain employment
contract provisions.
change in control vesting Removal of vesting requirements in stock awards and stock options if
there is a change in control of the company. See change in control.
chaos theory The view that results appear to be random and not the result of cause and effect.
Chapter 7 bankruptcy With this filing, debtors are no longer responsible for unsecured debts as the
company is liquidated.
Chapter 11 bankruptcy With this filing, a business is permitted protection from creditors while
reorganizing.
Chapter 13 bankruptcy With this filing, debtors are permitted to hold on to some assets while
paying off debt in installments.
charge to earnings See earnings charge.
charitable bequest A large insurance policy on the life of an executive or director or other financial
commitment at time of death that designates a cultural, educational, or philanthropic beneficiary.
charitable contribution Payment to a civic, cultural, educational or health-care organization that is
tax deductible because it is recognized by the IRS as a tax-exempt organization.
charitable lead trust Charity receives asset income for a stated number of years or until donor’s
death; donor or beneficiary receives what remains at time of designated event.
charitable remainder trust Charity donor receives asset income while alive; charity receives what
remains at time of donor’s death.
Chartered Financial Analyst (CFA) A designation of professional and ethical qualifications by the
Institute of Chartered Financial Analysts.
Chartered Financial Consultant (CFC) A designation of professional and ethical qualifications
given by the American College.
Chartered Life Underwriter (CLU) A designation of professional and ethical qualifications given
by the American College.
cheap stock Pre-IPO stock price that is determined by the SEC to be inappropriately low, requiring
a charge to the earnings for the discounted amount.
checking account An agreement with a bank or other financial institution that deposits can be with-
drawn at any time by the depositor.
chief executive officer (CEO) The highest-ranking executive of an organization, typically reporting
to the chair of the board of directors. In some companies the title is synonymous with president.
chief financial officer (CFO) The top financial position in an organization. He or she typically
reports to the chief executive officer (CEO).
chief operating officer The person who is responsible for the daily management of the company;
reports to the CEO.