Page 743 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

728 The Complete Guide to Executive Compensation

unequal voting rights Creating a separate class of stock for those aligned with management to have
greater votes; intended to ensure voter compliance.
unexercised stock option Options (vested and nonvested) that have not been converted to outstand-
ing shares.
unfriendly takeover An unwelcomed offer to buy a company. See black knight.
unfunded Benefit paid from company general assets rather than from insurance or trust.
unfunded rabbi trust See dry rabbi trust.
unisex tables Annuity and lump-sum tables that disregard life expectancy factors.
universal life insurance Ordinary life insurance with increases in cash value used to buy term
insurance.
unlisted securities See over-the-counter shares.
unreasonable compensation Pay ruled by the Internal Revenue Service as in excess of what is
appropriate and, therefore, not tax deductible by the company.
unvested Right to act or own not satisfied.
upside opportunity Incentive amount above the target award.
usury Illegal rate of interest.

vacation Authorized absence from work (usually with pay); period of time is based on years of
service.
validity An accurate report of events.
valuation Determination of value of a financial instrument.
value added The increase in worth of a product or service by the addition of materials and labor.
value added tax A consumption tax that is applied to the difference between selling price and
purchase price at each step of the transaction.
values statement A description of what the organization believes is important; typically, it describes
how stakeholders are to be treated, as well as their relative importance.
value stock Company stock with a high yield due to depressed stock price.
VAPPO See variable-priced stock option.
variable accounting Quarterly adjustments to reflect changes in performance measure to be paid at
a future date.
variable annuity Payment that varies in relation to overall value of the portfolio assets.
variable pay Compensation that increases or decreases in relation to performance factors.
variable-priced stock option Change in stock option price based on identifiable measurable
(e.g., DJIA).
variable rate mortgage See adjustable rate mortgage.
VEBA See Voluntary Employees Beneficiary Association.
venture capital Money used to finance new ventures (companies and/or projects) from venture
capitalists who provide own money and/or that of other investors.
vesting The requirements that must be met before the stated benefit can be received.
vesting period The waiting period before vesting.
vesting schedule Stipulation of the conditions over time that must be met before the award is no
longer subject to forfeiture.
viatical settlement A withdrawal of life insurance proceeds for a terminally ill patient with large,
nonreimbursed medical expenses.