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696 The Complete Guide to Executive Compensation

life estate arrangement Gift of personal residence to a charity while retaining use of the property
while alive.
life expectancy Number of years an individual of a certain age is expected to live.
life insurance (age payment) See age payment life insurance.
life insurance (carve-out) See carve-out life insurance.
life insurance (COLI) See company-owned life insurance.
life insurance (combination term and permanent) See combination term and permanent life
insurance.
life insurance (company owned) See company-owned life insurance.
life insurance (convertible) See convertible term insurance.
life insurance (dependent) See dependent life insurance.
life insurance (endowment) See endowment policy.
life insurance (group term) See group term insurance.
life insurance (key employee) See key employee life insurance.
life insurance (key person) See key person life insurance.
life insurance (ordinary) See ordinary life insurance.
life insurance (period payment) See period payment life insurance.
life insurance (renewable) See renewable life insurance.
life insurance (split-dollar) See split-dollar life insurance.
life insurance (straight life) See ordinary life insurance.
life insurance (term) See term life insurance.
life insurance (universal life) See group universal life insurance contract.
life insurance (whole life) See whole life insurance.
LIFO See last-in-first-out.
limitation A restriction on payment.
limitation formula A combination deductible and nondeductible that protects against payout at low
net-income levels and tempers run-away conditions at high net-income levels.
limited liability company (LLC) A legal entity that taxes earnings like a partnership but shields
personal assets like a corporation.
limited offering Size of securities offering and number of buyers limited in order to avoid SEC
registration.
limited partner A partnership investor with limited personal liability.
limited stock appreciation right (LSAR) A SAR that may only be exercised in limited situations,
such as a change in control.
limit order A buy or sell transaction at a specified price. See market order.
linear regression formula A statistical formula that will result in a straight line of best fit for a
scattergram. See least square method and nonlinear regression formula.
line of best fit See least square formula and nonlinear regression formula.
line of sight Ability to see how own performance contributes to the expectation for the group.
liquid assets See current assets.