Page 687 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

672 The Complete Guide to Executive Compensation

contingency agreement A commission agreement only if work is completed. Often applies to
executive search work.
contingent bonus An award based on occurrence of an event.
continuous service Time without a period of noncredited absence.
contract A legally binding agreement, orally or in writing, that states what is expected of the two or
more parties involved.
contrarian Believer that the generally held view is incorrect.
contribution Fund or property transfer to a plan by employee or employer.
contribution formula Methodology that specifies timing and amount of contribution.
contribution limit Maximum contribution.
contributory plan When the employee is either permitted or required to make a payroll deduction
for plan benefits.
control stock Stock owned by a person or persons who control the company directly or indirectly.
conversion privilege Ability to convert from term to ordinary life insurance without having to pass
a medical exam.
convertible bond See convertible debenture.
convertible debenture A bond with a provision allowing its conversion at a specified price and time
into shares of common stock.
convertible preferred stock Preferred stock with a provision allowing its conversion at a specified
price and time into shares of common stock.
convertible rights Shareholders of takeover targeted company given the right to convert their shares
into shares of the takeover company at a ratio unattractive to the bidder.
convertible security A financial instrument (e.g., bond) that can be converted into another (e.g.,
common stock). See convertible debenture and convertible preferred stock.
convertible term insurance Term insurance may be switched over to another form of insurance
(e.g., whole life or endowment).
COO See chief operating officer.
cooperative A business that is owned by those who run it and share in the profits and losses, usually
on an equal basis.
copyright Legal protection for published works and other related material. An infringement of
copyright can be pursued in the courts.
core benefits Basic components to which additional benefits may be added.
core business The products and services that the company knows the best, its field of expertise.
core competence The combination of skills and knowledge that provide a competitive advantage.
core earnings Typically defined as the after-tax earnings of a company’s main business (or businesses).
Revenues and costs related to the business are included; those that are not are excluded. This is
analogous to the cash flow statement segment that looks at operating activities.
corporate governance Conducting business within the confines of rules, regulations, and laws.
corporate-owned life insurance See company-owned life insurance.
corporate restructuring The realignment of work and how it will be done in an organization.
Typically, this results in downsizing or even eliminating some units while expanding others.
corporation A company that has filed for legal protection as a company by filing with a particular
state. Delaware is probably the most common state for incorporation.