Pass the WorldatWork Executive Compensation CECP Questions and answers with CertsForce

The cumulative information on the four quarterly reports adds up to the information on the annual report.

The quarterly reports are more detailed. The annual report provides similar data in summary form.

The annual report is required and the quarterly reports, while commonly used, are optional.

The quarterly reports are not as detailed as annual reports, and might not match due to changing accounting estimates over the year.

Compensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.

Compensation that is nondiscretionary and does not vary according to performance or results

Compensation that is contingent on discretion, performance or results

Compensation that is determined by the organization's pay structure   

Explained throughout the mission, vision, values and strategy

Implied in the mission, vision and strategy and specifically explained on the organization’s website

Reflected in the mission, vision, values and strategy although often not stated directly

Documented internally but not released to the public to protect trade secrets and maintain competitive advantage

It usually is a secondary consideration in compensation design.

It is the company's plan for competitive positioning of its products or services.

It must be written after the company's operating plans are approved by senior management.

It is developed for compensation, benefits and the work-life using the HR strategy as a basis.   

Focus on negative issues first, such as compensation costs exceeding budget, to get their attention

Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.

Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.

Recommend a solution that will solve the issue and explain why it is the best solution available.

Mental health coverage and health care coverage

Pay for time not worked and income protection programs

Unemployment and disability

Defined contribution and defined benefits plans   

Recognize possible issues and concerns that will drive budget planning

Prepare quarterly and annual reports and their associated statements

Withhold payroll taxes for all elements of compensation

Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle

Recognition

Bonus

Commission

Profit-sharing

The current value of holdings

The current value of holdings and how much it will grow over time at a given rate of return

The desired value in the future and what needs to be invested today to realize that amount

The difference between the desired value in the future and the current value as a percentage of the desired value

They typically have the greatest effect on net income and operating results of any organizational expense or program

Their success or failure is closely tied to the success or failure of organizationwide goals and objectives

They have very little effect as long as they are managed effectively and efficiently

They affect the organization’s overall financial status and impact multiple stakeholders across most, if not all, business units