Chap 14

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

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

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

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

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

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 that is determined by an increase in stock price at a fixed future date.

phantom stock plan

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

Today, top executive pay is more than _____ times the pay of the average worker.

300

The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent.

5 to 30

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.