Strategic Compensation Ch 12-13

A worker considered part-time is working less than how many hours in a week?

35

Under SEC rules, which of the following is true?

Board of director members may be subject to personal liability for paying excessive executive compensation.

Using this executive compensation theory, shareholders negotiate the compensation contracts with the executive in hopes of aligning the executive's interests with theirs.

agency

This is the difference between the stock price at the time of purchase and the lower stock price at the time an executive receives the stock option.

capital gains

A golden parachute clause can be triggered by which of the following?

corporate takeover

This refers to the sale of stock by the stockholder.

disposition

What type of test is used to determine if an independent contractor is financially dependent?

economic reality test

These entitle an executive to purchase company stock in the future for a predetermined price.

incentive stock options

Which type of contingent worker tends to have specialized skills that are in relatively limited supply in the labor market?

independent contractors

What is it called when Tanesha and Jaunita both work part-time to complete the duties of one full-time position?

job sharing

Their placement fees are either a percentage of the client company's payroll or a fixed fee per employee.

leased employees

Which type of contingent worker would work for a company on a long-term basis, presumably on an indefinite basis?

leased employees

Which type of stock options does not give executives favorable tax treatment?

nonstatutory

Most contingent workers were employed as what, in 2005?

on-call employees

Which type of contingent worker is most likely to be involved in a job sharing arrangement?

part-time employees

This type of executive bonus plan is similar to the appraisal system used to determine merit increases for non-executive employees.

performance-contingent

When a telecommuting employee works from a remote extension from the employer's office that includes a clerical staff and a full-time manager, that employee is said to be working at what type of office?

satellite work center

What is the term used when a company offers stock to its employees?

stock grant

These rights provide employees with an opportunity to purchase a number of stocks at a designated price within a specified period of time

stock option

Which executive bonus amount varies with the extent to which a pre-established minimum performance level is met?

target plan

In a company wanted to hire contingent workers as a way to screen workers for possible full-time employment, which type of worker would the company likely employ?

temporary

Who has the authority to define a "year of service" for pension protection purposes?

the U.S. Department of Labor

What is the economic reality test used to check for?

the financial dependence of independent contractors

What group most strongly opposes the use of contingent workers?

trade unions

Since temporary workers are employees of both the temporary employment agency and the client company, the dual employer common law doctrine establishes temporary workers' right to receive which of the following?

workers' compensation