Page 713 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

698 The Complete Guide to Executive Compensation

managed care program Cost control of medical programs by controlling access of patients to
specialists and negotiating the fees of health-care providers.
management by objectives (MBO) Managing an organization through the identification and
evaluation of goals or objectives critical to its success.
management cost ratio The aggregate compensation of the company’s named executive officers
divided into a stated financial measurement (e.g market capitalization or net income).
management director See inside director.
mandated benefits Coverage required by law.
mandatory deferral A deferral of stated dollar amount or percentage of pay required by the
company, typically from incentive pay. Not subject to constructive receipt but could be subject to
economic benefit.
margin Sometimes a reference to profit but also may refer to a type of stock purchase. If an investor
buys stock paying only a portion of the cost in cash with the remainder from a broker loan, it is
described as “buying on the margin.”
margin account The shares of stock that are used as collateral to buy additional shares with a
brokerage firm loan.
marginal tax rate The tax on the next dollar of income.
margin borrowing Using shares as collateral to borrow money from a broker.
margin call Following a decline in the value of the stock used to buy on margin below the stated level,
the borrower must either provide the needed capital to bring it into balance or the broker will sell the
necessary number of shares to do so.
marked-to-market The quarterly adjustment to an accrued liability of stock-price-based awards that
are defined as liability awards under FAS 123R.
market condition plans A plan defined by FAS 123R as measuring company stock appreciation
and/or the stock price relative to other selected companies.
marketable securities Financial instruments that are easily converted to cash.
market cap See market capitalization.
market capitalization The total number of common stock outstanding multiplied by the price of the
stock.
market cycle See market lifecycle.
market lifecycle The aggregate position of a company’s products/services in the stage of either
threshold, growth, maturity, or decline.
market order A buy or sell transaction at current market value.
market phase See market lifecycle.
market pricing Method of job evaluation. Focuses primarily on the external competitive market-
place, rather than internal job evaluation to determine job value.
market rate The prevailing level of pay for a particular job.
market share Company total sales divided by estimated total dollar value of all similar products and
services in the marketplace.
marketing timing An investment strategy that acts on predictions of stock market increases and
declines.
market to book ratio Common stock price divided by company’s book value per share.
market value See fair market value.