Page 728 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Glossary 713

reinsurance Protection against paying out in excess of a stated limit by insuring against that
happening.
REIT See real estate investment trust.
reliability Consistently getting the same answer.
reload options Optionee receives a new stock option for additional shares (equal to the number
tendered) at the same price and for the remaining term of the grant of an option exercised.
relocation expenses Reimbursement of a portion of moving expenses by a current employee to
relocate to a different company site.
RELP See real estate limited partnership.
remuneration See compensation.
renewable life insurance Term life insurance that may be continued for another prescribed period
of time (at a higher premium) without having to undergo a medical examination.
renewal Continuation of coverage of lapsed policy.
replacement option See reload option.
reporting relationship The vertical alignment of jobs in the organization.
repricing options See option repricing.
request for proposal (RFP) The invitation by the buyer for the seller to submit a proposal reflect-
ing dates and costs for completing the work.
reserves Funds set aside for future anticipated needs.
restatement A revision in publicized statements (typically of earnings).
restoration option See reload option.
restoration plan Benefits that when added to those permitted under qualified pension plan rules will
equal the amount provided by the pension plan formula.
restricted securities Privately issued securities without a registration statement requiring a holding
period.
restricted stock A stock award that may not be sold for a specified period of time. Stock is forfeited
if leaving before the vesting period is complete. See PARSAP, TARSAP, and stock award.
restructuring Reconfiguring an organization to adjust to revised organizational strategies.
retained earnings Profit after taxes and dividends that is retained in the company for future use.
retained earnings to capital ratio Retained earnings divided by shareholder equity, thereby stating
what percentage of shareholder equity consists of retained earnings.
retainer A payment regardless of performance.
retention That portion of the premium that an insurance company keeps to cover expenses, risk, and
a profit.
retention award Payment for staying to a prescribed date.
retention bonus See retention award.
retired lives reserved insurance Prefunding postretirement life insurance by making contributions
to a reserve fund to purchase a deferred life insurance policy or continue premium payments after
retirement.
retiree medical insurance Health-care benefits provided to retirees of the company.
retirement age The age when a person leaves active employment, typically in exchange for a
pension based on past service.
retirement plan See pension plan.