Unit 4.7 - Executive Compensation Flashcards
1
Q
What are stock options?
A
A stock option is the right to buy company shares stock at a fixed price over a certain period of time.
Restricted Stock Grant:
* Time-based shares - usually requires the executive to remain with the company for a certain period of time
* Performance-bases shares - certain period time + achieve performance goals
2
Q
What is a non-qualified deferred compensation (NQDC) plan?
A
A non-qualified deferred compensation (NQDC) plan is an income deferral arrangement in addition to other qualified retirement plans, free of strict limitations.
Rabbi Trust:
Rabbi trust is a vehicle for holding assets set aside to support an employer’s unfunded deferred compensation obligations.
