Page 718 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Glossary 703

nonlinear regression analysis A statistical formula that will result in a curved line of best fit for a scat-
tergram (unless a straight line is the line of best fit). See least square method and linear regression formula.
nonmanagement director A member of the board of directors who is not currently an employee of
the organization.
nonprofit organization A charitable, educational, or other humanitarian organization formed for
such a purpose. As a not-for-profit organization, it is exempt from income taxes.
nonqualified deferred compensation plan Income deferred to a later date, thereby deferring tax.
See economic benefit, constructive receipt, and deferred income.
nonqualified pension plan A defined-benefit or defined-contribution plan that does not meet the
Internal Revenue Code (Section 401) requirements for favorable tax treatment.
nonqualified plan A plan that does not meet the deferred compensation requirements of Section 400
of the Internal Revenue Code.
nonqualified stock option (NQSO) A stock option that does not meet the Internal Revenue Code
(Section 422) requirements for favorable tax treatment.
nonrecourse loan Only the asset used as collateral is subject to forfeiture.
nonstatutory plan See nonqualified plan.
nonstatutory stock option See nonqualified stock option.
nonvested Unable to purchase and/or sell the asset because eligibility requirements have not
been met.
NOPAT See net operating profit after taxes.
normal distribution A distribution of data that resembles a bell-shaped curve where the mean,
median, and mode are identical.
normal retirement Age at which there is no reduction in the accrued defined benefit.
notary Individual authorized by law to serve as witness to an act or signature.
not-for-profit company An organization formed to provide a product or service without making a
profit.
not-for-profit organization A company that does not intend to make a profit. Charities and
professional associations are key examples.
NQSO See nonqualified stock option.
nuncupative will See holographic will.
NYSE See New York Stock Exchange.

objective Typically a qualitative performance target, with a goal being a quantitative performance
target.
odd-lot trade A buy or sell order for less than 100 shares.
off-balance sheet financing When an asset is leased and the amount of indebtedness does not appear
on the balance sheet.
offer Price at which a person is willing to sell, or the price at which a person is willing to buy.
offering price Per-share price an investor will pay a mutual fund.
officer (appointed) Individual who can only attest to the corporate seal, not bind the corporation to
an action.
officer (elected) Individual who can bind the corporation to an action.
offset integration method Applies one benefit rate to all earnings and then an equal or lower
percentage to the social security benefit, with the latter amount subtracted from the former.