Page 714 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Glossary 699

matching contribution Generally refers to what an organization will credit a person’s account—
often described in percentage terms (e.g., 50 percent).
matching gift A company match (usually dollar for dollar) of an employee’s contribution to a quali-
fied charity.
material information Information that could affect a decision to buy or sell a particular stock.
maturity The date on which a security holder is to receive accrued value.
maturity curve A job evaluation or job survey that identifies pay in relation to years (e.g., years since
degree).
maturity stage The third stage in the market lifecycle, which is marked with a dramatic slowing of
revenue growth, although net income may be growing at a faster rate.
maximum The highest amount allowed.
maximum tax rate The highest tax rate assessed.
mean The sum of the individual items divided by the number of such items.
measurement date For accounting of employee stock-based compensation, it is the first date that the
number of shares and purchase price are known.
measurement date principle Determination if the employee stock-based compensation is subject to
fixed or variable accounting under APB 25. See measurement date.
mechanics lien Control of property to satisfy a debt for unpaid contracted services on the property.
median The middle value of the data after it has been arrayed low to high in value.
mediation When a third person attempts to help two or more parties settle their differences. Unlike
in arbitration, the mediator has no authority to force agreement.
Medicaid Federally funded but state-administered plan to pay medical expenses for low-income
individuals.
medical examination Tests of the health of an individual.
medical insurance A plan that provides specified type of health-care coverage.
medical reimbursement account See flexible spending account.
Medicare A federal health insurance program that pays for part of the medical care for those meet-
ing retirement criteria.
Medicare tax rate Unlike social security tax, which has a maximum earnings cutoff, the Medicare tax
applies to all earnings; therefore, it is a larger tax obligation for executives than the social security tax.
meeting fees Payments for every meeting attended. A typical form of payment for board of director
meetings and that of their committees.
mega-cap stock Market capitalization of over $100 billion.
mega grant See jumbo grant.
merger The resulting combination of two or more companies following the integration of their
balance sheets.
merit budget The sum total allowable merit increases.
merit increase An increase in salary based on performance (and perhaps position within salary
range).
merit matrix An increase in salary based on performance and position within salary range.
meritocracy Success or failure depends on one’s own performance.
merit pay See merit increase.