Page 735 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

720 The Complete Guide to Executive Compensation

sign-on bonus See front-end bonus.
silver parachute A severance package to selected individuals, typically based on a significant portion
of the company being purchased by someone else (also known as change of control) that is less liberal
than a golden parachute but more liberal than a bronze parachute.
Simplified Employee Pension An IRA/Keogh-type plan set up for small employers who wanted no
part of complicated federal pension rules and regulations.
single-factor analysis See factor analysis.
single-trigger contract A change of control contract that is activated as soon as the stated
percentage of shares has been acquired by a third party. See double-trigger contract.
six-sigma standard 99.99966 percent perfect—3.4 imperfect products per 1 million produced.
skew A deviation from normal distribution.
skewed negative See negatively skewed.
skewed positive See positively skewed.
slope The increase in the Y value with a stated increase in the X value of a linear curve.
slotting Inserting a job in the hierarchy of other jobs based on relative values.
small-cap stock Companies with market capitalization over $100 million but less than $1 billion.
SMART An acronym for Specific, Measurable, Achievable, Realistic, and Timely. Typically used in
referencing performance objectives.
social security Old age, survivors, disability, and health insurance benefits provided by federal law.
sole proprietor A person who owns 100 percent of an unincorporated business.
sole proprietorship When one person is personally liable for all business obligations since the
business is not incorporated.
solvency Ability to pay debts in full on due date.
solvent Total assets exceed total liabilities.
S&P See Standard & Poor’s.
SPD See summary plan description.
special accomplishment award Recognition of a singular notable action that contributes to the
success of the business.
specialist A member of the New York Stock Exchange who buys and sells specific stocks for self or
others.
special-purpose entities (SPES) Off-balance-sheet vehicles that may include risks and potential
liabilities.
spin in A reversal of a spin off.
spin off Giving a divested business to company shareholders by creating a new stock.
split See stock split.
split-dollar insurance Whole life insurance whose ownership is split between the company and the
insured, with the face value of the policy (less the amount paid by the company, which it recaptures at
time of the insured’s death) paid to the insured’s beneficiary.
split-type stock options A stock option in both former and spin-off company equal in value to the
original option in the former company.
spread The value difference between two similar items, such as the difference between the option
price and the market price of a share of stock.