Page 702 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Glossary 687

GDP See gross domestic product.
general leave of absence A paid or unpaid authorized leave of absence beyond court duty,
disability, funeral, vacations, and workers’ compensation.
Generally Accepted Accounting Principles (GAAP) The standards set down by the FASB, which
SEC-affected companies are expected to follow.
general partner Individual in partnership with unlimited personal liability.
GIC See guaranteed income contract.
gift tax The tax on amounts gifted to another and typically paid by the giftor.
Ginnie Mae See Government National Mortgage Association.
Glass Lewis & Company Investor advisory firm.
glue grant A restricted stock award granted to offset the negatives of an underwater stock option,
hoping the optionee will stick with the company.
GNP See gross national product.
goal Typically a quantitative performance target, with an objective being a qualitative performance
target.
goal sharing A group incentive plan formula using specified performance targets.
golden boot Severance pay beyond that specified in an employment agreement to soften the impact
of employment termination.
golden bungee A combination of golden handcuff and golden parachute.
golden carrot An incentive program.
golden gut Ability to decide without being confused with data.
golden handcuff A deferred cash and/or stock payment that it is hoped will keep the individual from
leaving the company.
golden handshake An employment contract specifying salary, guaranteed bonus, stock options,
special perquisites, and severance pay for terminating the contract.
golden hello A front-loaded pay package (typically with restricted stock) to offset the individual’s
financial loss for leaving current employer (also known as an acceptance award or bonus).
golden hook See sign-on bonus and golden hello.
golden hug A specified payment for staying with the company for a stated period of time—usually
initiated when the company is facing bankruptcy or other troubled times (sometimes paid without the
person losing employment).
golden parachute A severance package to selected individuals, typically based on a significant por-
tion of the company being purchased by someone else (also known as change of control). More liberal
than a silver parachute but less liberal than a platinum parachute.
golden passport Degree from a prestigious college or university and/or experience from a highly
qualified employer.
golden safe Deferred compensation that is secured from general creditors—typically implemented
when the company is facing bankruptcy.
good faith Belief in honest and truthful conduct.
goodwill The amount by which the purchase price of an acquired company exceeds its market-adjusted
net assets. Factors included in this differential include product brand names, market share, and stage in the
market cycle.
Government National Mortgage Association (Ginnie Mae) Created in 1968, it guarantees
payment of principal and interest on pooled mortgages.