Chapter 14 Exam Prep Compensation Of Special Groups - Compensation 12e Complete Test Bank by Jerry Newman. DOCX document preview.
Chapter 14
Compensation of Special Groups
Multiple Choice Questions
1. | In which of the following situations would the engineering jobs be most likely treated as a special compensation group?
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2. | Executives, supervisors, and sales staff often receive special compensation treatment because _____.
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3. | All of the following EXCEPT _____ would be considered a special compensation group.
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4. | The biggest trend in supervisory pay centers on _____.
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5. | The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent.
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6. | The _____ component of executive compensation has grown the most since 2012.
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7. | Annual bonuses often play a major role in executive compensation and are primarily designed to _____.
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8. | Which of the following is NOT a reason for the recent decline in the use of stock options in executive pay?
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9. | A(n) _____ awards cash or stock if specific goals are achieved.
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10. | A(n) _____ awards cash or stock that is determined by an increase in stock price at a fixed future date.
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11. | Nonqualified stock options require _____.
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12. | At the time it is granted, which of the following has no tax implications for an executive?
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13. | Which of the following is NOT one of the clauses relating to the benefits employers can provide executives?
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14. | Which of the following is the most popular executive perk offered by most companies?
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15. | A useful tool for determining the true worth of an entire executive compensation package is _____.
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16. | The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees.
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17. | Today, top executive pay is more than _____ times the pay of the average worker.
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18. | A recent article analyzing the results from over 100 executive pay studies shows that the best predictor of executive pay, by far, is _____.
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19. | The most common approach to motivating executives to make decisions that are in the best interests of stockholders is _____.
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20. | 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) _____.
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21. | _____ curve expresses the relationship between years since last degree, performance, and salary.
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22. | Popular stereotypes of salespeople characterize them as being heavily motivated by _____.
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23. | If improved account retention became a major focus of attention, the performance measure stressed would be _____.
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24. | When designing a sales compensation plan, it should be kept in mind that:
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25. | 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:
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26. | 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:
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27. | NaxWell Corp. sells a smart wristband that, apart from monitoring heart rate and blood pressure, also reminds users to stand and walk every half hour. As part of its promotional efforts, a celebrity starts wearing the wristband, thereby increasing its popularity and ease of sale. Which of the following is most likely to happen?
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28. | With easily sold products:
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29. | Working through a temporary-help agency usually means:
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30. | Which of the following is NOT a reason for companies to hire contingent workers?
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True / False Questions
31. | Engineers in almost all companies are treated as special compensation cases due to their education and training. |
32. | Contingent workers are usually considered candidates for special compensation. |
33. | Members of boards of directors are not categorized as candidates for special compensation. |
34. | The most popular method of providing special compensation to supervisors is by paying overtime. |
35. | Compensation committees of boards of directors typically set executive salaries. |
36. | The most recent trend in executive compensation is an increased use of stock options. |
37. | Incentive stock options may be deducted as a company expense. |
38. | ERISA and the tax code specify that the average value of benefits for low-paid employees must be at least 75 percent of those of highly paid employees. |
39. | The 1993 Revenue Reconciliation Act limited employer deductions for executive compensation to $1 million and capped the amount of executive compensation used in computing contributions to and benefits from qualified retirement plans. |
40. | The best predictor of CEO pay is performance of the company. |
41. | In most cases, when a compensation consultant is called in to review the salary of a chief executive officer, regardless of how well the company is performing, the CEO's pay is raised. |
42. | Organizations rely very heavily on external market data in pricing scientists' and engineers' base pay. |
43. | Unlike executives, scientists and engineers are less likely to receive lavish athletic facilities and large offices. |
44. | A trend in sales force compensation is linking sales force compensation to customer satisfaction measures. |
45. | In maturing markets, companies focus both on performance-based pay tied to customer satisfaction and on greater. |
46. | Compensation packages for salespeople must be competitive because salespeople tend to compare their pay with competitors. |
47. | In a recession environment, companies need to react to the decreasing level of sales by rewarding top-level performers that achieve high levels of sales despite the economic downturn. |
48. | Independent contractors always earn less than their permanently employed counterparts. |
49. | Independent contractors generally are less expensive for employers as they receive no benefits. |
50. | At least for high-skilled contingent workers, it is increasingly popular to view careers as a series of opportunities to acquire valuable increments in knowledge and skills. |
Short Answer Questions
51. | Who are special groups? What are the characteristics that special groups share?
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52. | List the basic components of most executive compensation packages.
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53. | Explain any one element of an executive compensation package in detail.
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54. | What is a tally sheet and what is it used for?
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55. | Describe how executives ensure themselves high compensation.
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