Page 722 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Glossary 707

performance-based restricted stock See PARSAP and TARSAP.
performance condition A requirement that must be met before payment is released.
performance management See management by objective.
performance measure A qualitative or quantitative expectation.
performance period The preset length of time for measuring performance. See short-term incentive
and long-term incentive.
performance rating The synergy of performance appraisals into a single word or number to reflect
overall performance.
performance requirement vesting Nontransferable unless the performance conditions have been
met—a more severe form of performance vesting.
performance review A look back at appraised performance, typically in a face-to-face discussion
between the rater and ratee.
performance-share plan (PSP) A long-term incentive plan with a performance period (usually three
to five years) with the number of shares to be awarded dependent on preset performance criteria,
typically a range from threshold to maximum with a target in between.
performance-sharing plan See goal-sharing plan.
performance stock option An option that does not vest unless a preset performance target has been
met. This is more onerous than the performance-accelerated stock option.
performance target The expected level of performance. At this level, a target payout is planned.
performance-unit plan (PUP) A multiyear incentive plan similar to the performance-share plan
except that the award schedule is stated in units (with a preset price) instead of shares in company stock.
performance vesting Conditions under which the stock will vest.
period payment life insurance Payment for a stated period (e.g., 20 years), after which the policy is
paid up.
perks See perquisites.
perquisites Benefits available only to executives. Also called perks. Not performance based, and
rarely taken away.
personal escort Person assigned to take care of the executive’s matters while outside of the office
(e.g., checking into the hotel) and catering to individual whims (e.g., ensuring favorite brand of scotch
is in the room). May also serve as a “date” if spouse is unavailable for social events.
personal umbrella liability insurance Begins where auto and homeowner’s policies end, up to a
stated dollar liability limit.
phantom stock A financially defined instrument other than common or preferred stock. The most
common is book value share.
phantom stock appreciation rights The right to appreciation on phantom stock.
phantom stock award An award of phantom stock.
phantom stock-for-stock exercise See attestation.
phantom stock option An option to buy phantom stock at a stated price.
Phillips curve A curve showing the inverse relationship between inflation and unemployment.
physical examinations See medical examinations.
physical fitness program Scheduled activity on exercise equipment supplemented with stress
management, nutrition information, and smoking cessation and weight control programs.
piecework Payment per unit produced.