Page 685 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

670 The Complete Guide to Executive Compensation

collateral Assets offered as security for a loan that are subject to forfeiture if the loan is not repaid
(i.e., in default).
combination plan An award or grant with two or more distinct parts, each of which can be exercised.
See Tandem plan.
combination term and permanent life insurance One part decreasing term and the other part
increasing permanent insurance.
commercial medical insurance In exchange for monthly premiums, the carrier pays all
covered costs.
commercial paper The short-term debt (typically 90 days or less) of a company.
commingled funds The merger of investor funds to provide broader investment opportunities.
commission The amount (either in dollars or percentages) that a person will receive for sales of
a product or service. An example would be a percentage of the sale price. This form of incentive is
typical for selling insurance and stock.
committee A group of persons charged with a responsibility.
commodities Raw materials, such as cocoa, gold, oil, and wheat.
commodity exchange (COMEX) A site where commodity futures are bought and sold.
commodity future A contract to buy or sell a particular commodity on a specific date at a
stated price.
common adjustment date All individuals within a specified group receive their salary adjustments
on the same date. Most frequently this is the first day of the new business year. See distributed pay
adjustment date for the alternative approach.
common law Law defined by judicial decisions rather than legislative actions.
common shares See common stock.
common stock A unit representing an ownership in a publicly traded company. The value of the
stock is based on what others are willing to pay or buy it for and others are willing to sell it. It has a
voting right and may be eligible for a dividend. See preferred stock.
community-rated medical plans Premium is determined by the full community of users, not
simply a single company.
company A legally recognized entity formed for the purpose of conducting business. Also known as
a corporation.
company aircraft Fixed- and/or rotary-wing planes owned or leased by the company for business
(and possibly personal) use by executives.
company apartments Company-owned or -rented apartment available for business (and possibly
personal) use by executives.
company automobiles See company cars.
company cars Automobiles owned or leased by the company for business (and possibly personal) use
by executives.
company charter See certificate of incorporation.
company-owned life insurance (COLI) The company is the policy owner, in whole or in part.
It may also be the beneficiary or the interest split.
company product discounts Ability to purchase company products at a significant discount.
compa-ratio Actual pay divided by the structural control point (midpoint for most companies).
compensation Cash or its equivalent given to an employee by the employer in exchange for services
provided. See employee benefits.