Page 745 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

730 The Complete Guide to Executive Compensation

withholding tax Payroll deductions for income taxes.
without dividend At time of sale, the stock purchased is not eligible to receive the next dividend
payment.
workaholic Person obsessed with work to the exclusion of other uses of time.
work ethic The extent to which a person is committed to achieve the desired objective in an
appropriate manner.
working capital See liquidity.
wraparound plan A plan that supplements existing coverage to achieve a specific objective.
write-down Lowering the value of an asset on the balance sheet.

X axis The horizontal line of a two-dimensional graph. See Y axis.
Y axis The vertical line of a two-dimensional graph. See X axis.
year-before-the-year principle Decision on deferral of pay must be made in the year before the year
in which the payment is earned.
year of service Twelve months except for ERISA-covered plans where it is 1,000 hours worked
during a consecutive twelve-month period.
yield The rate of return on an investment.
yield gap The difference between yield on long-term bonds versus equity dividends, with the latter
expected to be higher to reflect a risk premium.
yield rally Increased yield due to falling stock price.
Yo-Yo option A stock option whose price goes down in direct relation to an increase in the
subsequent fair market value of the stock.

zero-based budget A justification of every requested dollar of expense.
zero-coupon bond A bond that pays no interest and therefore typically is sold at a greater discount
than a bond paying interest.