Page 741 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

726 The Complete Guide to Executive Compensation

threshold award The lowest payment above no payment.
threshold stage The first stage in the four-stage market lifecycle of a product, service, or company.
thrift plan See defined-contribution pension plan.
TIAA-CREF See Teachers Insurance Annuity Association-College Retirement Equities Fund.
ticker symbol Letters used by a stock exchange to identify a stock or mutual fund.
time-accelerated restricted stock award plan (TARSAP) Synonymous with performance-
accelerated restricted stock award plan (PARSAP).
time span of discretion A job evaluation plan that arrays jobs in terms of the period of time before
performance can be measured.
timing of payment See payment timing.
tin parachute A severance package to non-exempt employees based on a significant portion of the
company being purchased by someone else (a.k.a. change-of-control) that is less liberal than a bronze
parachute.
Tobin’s Q The ratio of company market value plus long-term debit divided by asset replacement
costs. The higher the ratio, the better.
TOLI See trust-owned life insurance.
top-down Determination at top of organization is pushed down through the organization.
top-hat pension plan Nonqualified deferred compensation plan for executives.
top-hat plan Benefits provided to executives beyond the basic employee benefit plan.
top-hat welfare plan Health care, time off, and survivor protection plans for executives.
tort A private wrongful act as opposed to a public wrong (i.e., a crime).
total capital The sum of long-term debt and shareholder equity.
total compensation The sum of salary, short-term incentives, long-term incentives, employee
benefits, and perquisites.
total debt to total assets ratio Total liabilities divided by total assets; represents the portion of total
assets that is offset by debt.
total direct compensation Annual cash (including stock) and annualized long-term incentive amount.
total disability Illness or injury preventing a person from performing assigned duties.
total future overhang See total potential dilution.
total potential dilution The addition of shares requested to the numerator used in overhang with
the same denominator.
total potential overhang See total potential dilution.
total shareholder return See shareholder value increase.
TPI See tax preference income.
tracking stock See letter stock.
TRAESOP See Tax Reduction Act employee stock ownership plan.
tranche A class of maturity of a financial instrument.
transaction award See transaction bonus.
transaction bonus A payment for staying with the company until the transaction (i.e., acquisition,
merger, or sales) is completed.
transferable stock options Option terms permitting the transfer of the right to exercise the stock
option to another party.