Page 707 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

692 The Complete Guide to Executive Compensation

insider A person who has information about the company that is not known by those outside the
company and is important in determining stock value.
insider trading Buying and/or selling of company stock by insiders.
installment vesting A stock option or award with a stated percentage of the full grant exercisable in
a given year.
Institute of Internal Auditors (IIA) Trade association for internal auditors.
institutional investor Typically includes mutual and pension funds, which invest entrusted assets.
Institutional Shareholder Services Investor advisory firm.
Institutional Shareholder Services Investor advisory firm.
insurance Transfer of risk of large dollar amount to another party in exchange for a smaller payment.
insured The individual or organization protected from loss.
insurer The organization that assumes risk of loss.
intangible asset Nonphysical property, such as patents and trademarks.
integrated pension plan A retirement annuity plan whose benefits are coordinated with social
security benefits.
integration threshold The compensation level that separates the base from higher levels or
contributions in pension plans that are “integrated” with social security.
intellectual capital The cumulative knowledge of an organization’s workers.
intellectual property Copyrights and patents.
interest The amount paid on borrowed capital.
interest rate The percentage paid by the party holding one’s money for the use of that money.
interlocking relationship When a company’s CEO sits on compensation committees of companies
represented on his or her own compensation committee.
internal equity The state when the worth of each job in a unit represents its value to the unit.
International Accounting Standards Board Private sector organization responsible for establishing
a set of accounting standards that apply globally. Similar to the Financial Accounting Standards Board
but with a different geographic influence.
interquartile range The values that fall between the 25th and 75th percentiles of an ordered data
array.
inter vivo trust See living trust.
interwoven directors Directors who sit on each other’s boards.
Internal Revenue Code (IRC) The embodiment of tax laws passed by Congress. See Internal
Revenue Service.
Internal Revenue Service (IRS) The section within the Treasury Department responsible for inter-
pretation of the Internal Revenue Code and the collection of taxes.
Internet A global public network of computers.
intestate Dying without a will.
in-the-money stock options Stock options with market value above option price.
intranet An in-company network of computers.
intrinsic compensation Form of reward appreciated for its status rather than its cash value.
intrinsic motivation Work is the reward.
intrinsic option value The difference between fair market value and option price.