MGT 461 Chapter 14
The biggest trend in supervisory pay centers on _____.
increased use of variable pay
The _____ component of executive compensation has grown the most since 2012.
long-term incentives
Today, top executive pay is more than _____ times the pay of the average worker.
300
_____ curve expresses the relationship between years since last degree, performance, and salary.
A maturity
Which of the following is NOT one of the clauses relating to the benefits employers can provide executives?
Average value of benefits for low-paid employees must be at least 90 percent of that for highly paid employees.
In which of the following situations would the engineering jobs be most likely treated as a special compensation group?
Computer engineers employed at a software firm
Which of the following is the most popular executive perk offered by most companies?
Executive physicals
Which of the following is NOT a reason for the recent decline in the use of stock options in executive pay?
Financial Accounting Standard Number 313 raises the cost of using stock options.
At the time it is granted, which of the following has no tax implications for an executive?
Incentive stock options
The most common approach to motivating executives to make decisions that are in the best interests of stockholders is _____.
a long-term incentive plan using stock options
A useful tool for determining the true worth of an entire executive compensation package is _____.
a tally sheet
Leah, the CEO of SteadyResults Corp., feels that she is underpaid, so she hires a compensation consultant to survey actual competitors of the company. According to agency theory, if SteadyResults performs poorly, her salary will most likely:
be increased in order to retain her.
Popular stereotypes of salespeople characterize them as being heavily motivated by _____.
financial compensation
A recent article analyzing the results from over 100 executive pay studies shows that the best predictor of executive pay, by far, is _____.
firm size
Hannah is the CEO of JF Corp., a steel manufacturing company. She finds that the market is exhibiting the signs of a maturing market. She wants to revise the compensation package for her sales employee to adapt to the changing market conditions. In this case, Hannah is most likely to:
increase base pay.
Working through a temporary-help agency usually means:
low pay in administrative or day labor positions.
Annual bonuses often play a major role in executive compensation and are primarily designed to _____.
motivate better short-term performance
If improved account retention became a major focus of attention, the performance measure stressed would be _____.
percentage account erosion
A(n) _____ awards cash or stock if specific goals are achieved.
performance share plan
A(n) _____ awards cash or stock that is determined by an increase in stock price at a fixed future date.
phantom stock plan
Nonqualified stock options require _____.
purchase of stock at a stipulated price, not conforming with the Internal Revenue Code
When designing a sales compensation plan, it should be kept in mind that:
salespeople under an incentive system will view customer service as an imposition.
The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees.
social comparison
With easily sold products:
the base compensation tends to be more important.
Executives, supervisors, and sales staff often receive special compensation treatment because _____.
these jobs face conflicting demands
All of the following EXCEPT _____ would be considered a special compensation group.
unpaid interns
In recent years, some firms have tried to deal with the plateau effect and also accommodate the different career motivations of mature scientists and engineers through a(n) _____.
dual-career ladder
