Page 738 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Glossary 723

stock withholding Authorization to withhold sufficient shares to meet tax withholding requirements
after exercising a stock option.
stock yield See yield.
straddle Simultaneous purchase of call and put options to limit exposure.
straight life insurance See ordinary life insurance.
straightline depreciation Equal annual amounts reducing the value of a noncurrent asset.
strategic alliance A business agreement between two or more companies that will state the benefits
to each. Typically, each company has a strength sought by the others.
strategic business alignment A common understanding of the vision and the execution of strategy.
strategic business unit (SBU) A virtually self-contained business within the company.
strategic planning The goals and objectives resulting from a review of company vision, mission, core
competencies, and threats and opportunities.
strategic thinking Informal version of strategic planning.
strategy The plan that evolves from strategic planning.
street name Stock held in the name of a broker for a person.
stress Pressure to perform.
stretch target A difficult but attainable goal.
strike price See option price.
subchapter S corporation A corporation that permits the 35 or fewer shareholders to be taxed as
individuals or as a corporation.
subpoena Court order requiring the appearance of a person or specific documents.
subordinated bonds Securities with lower priorities in case of bankrupcy liquidation than other same
issuer bonds.
subrogation Right to recoup payments via a legal suit.
subsidiary A company that is owned by one or more other companies, as opposed to a division, which
is a part of a company.
subsidiary stock Stock of a company’s subsidiary.
substantial risk of forfeiture Compensation is not taxed until future service is completed, because
if not completed there will be no payment.
succession award See executive succession award.
succession planning Identifying (and preparing) candidates to replace key persons should they leave
the company.
summary annual report (SAR) An ERISA requirement to disclose financial status of ERISA-
covered benefits.
summary compensation table A requirement that the pay of the five named executive officers be
included in the proxy statement.
summary plan description (SPD) An ERISA requirement to describe to employees the benefit
provided.
sunset provision A feature of a plan that will terminate on a specified date.
supermajority requirement Approval requires at least 75 percent of the voting stock.
supplemental executive disability protection Benefits in excess of those provided by the employee
benefit plan.