A COMPILATION OF KEY COMPENSATION TERMS
In an effort to provide our readers with valuable resources, we have put together this dictionary of key compensation terms that will be helpful to anyone in the compensation field. Here you will find all the terms you need to know to have a good grasp on the language of compensation.
The Compensation Dictionary is also available as a PDF.
There are currently 6 names in this directory beginning with the letter C.
CEO PAY RATIO
The ratio between the CEO’s total annual compensation and the median employee’s pay. Publiccompanies are required to disclose this figure in any annual report, proxy or information statement.
CHANGE IN CONTROL PAYMENT OR GOLDEN PARACHUTE PAYMENT
An agreement to pay a large sum and/or benefits to a company executive who is terminated fromhis position following a sale, merger, consolidation or acquisition of a company.
A special clause typically included in employment contracts, by which money already dispersedmust be paid back under certain conditions, possibly with added penalty.
The total cash and non-cash payments given to an employee in exchange for services performedand includes base pay, commissions, bonuses, benefits, stock options and other forms of non-cashbenefits.
Experts in the design and implementation of compensation plans, the creation of proper incentivesfor employees, and advising companies on compensation trends and the current pay rates forgiven job positions.
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