Page 684 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Glossary 669

childcare program A benefit that ranges from a simple referral service to a company facility caring
for children while the parents are at work.
churning An unusually high level of buying and selling stock by a broker, usually with the intent of
receiving additional commissions.
CIC See change in control.
claim A payment request for services provided.
claimant Person filing a claim.
claims procedure The process for administering claims.
class action A lawsuit on behalf of a group of people believed to be in a similar circumstance.
classification method of job evaluation Comparison of each job with a written set of standards for
each job graded. The federal government GS is probably the best example.
classified board Election of fewer than all the directors annually. Typically, only one-third is elected
in a year, with each serving for three years.
clawbacks The return of certain acquired assets (e.g., exercised stock options) for a prescribed
period following voluntary separation of service or violation of a noncompete agreement.
clearinghouse An organization that settles transactions between financial institutions.
cliff vesting Waiting period before which no shares can be transferred and after which all shares are
transferable.
closed corporation A publicly traded company with voting control in the hands of a few individuals.
closed-end fund A mutual fund that has a fixed number of shares that are publicly traded.
closely held corporation See closed corporation.
closely held shares Publicly traded stock that is in the hands of a few individuals. See closed
corporation.
closing price The last price for an item at close of a trading period.
clothing allowance Payment to purchase clothing.
club membership An executive perquisite that ranges from athletic to country clubs.
COBRA See Consolidated Omnibus Budget Reconciliation Act.
COC See change of control.
CODA See cash or deferred compensation arrangement.
Code See Internal Revenue Code.
code of conduct A stated position of how or how not individuals are to act. It goes to the spirit of
laws, not simply the letter.
codicil A legally binding amendment to an existing will.
coefficient of correlation See correlation.
coefficient of variation A statistical measure of the dispersion of data based on the standard devia-
tion from the mean.
coinsurance The insured and insurer share in the costs.
COLA See cost-of-living adjustment.
COLI See company-owned life insurance.
collar Lowest offering price acceptable to IPO company. For a merger or acquisition, it is the range
of low to high price of the acquirer’s stock with the number of shares adjusted inversely. It is also a put
and call on the same stock, hedging against a drop in the stock price with acceptance of a maximum rise.
collared stock option See truncated stock option.