Exam 14: executive compensation and employee benefits

Congress has used federal tax laws to provide incentives to encourage certain types of executive compensation such as options.

A principal kind of stock option is a(n)

Which of the following allows employees to defer a portion of their salaries on a pretax basis into an investment fund set up by the company?

Who is responsible for setting the compensation of corporate officers?

When by law could U.S.companies first offer stock options to employees?

What did the court rule in Pegram v.Herdrich,the case discussed in the text in which the plaintiff's appendix ruptured while she was waiting several days for an ultrasound,and she claimed that the HMO involved breached its fiduciary duty by rewarding physicians for cutting costs?

The directors of privately held corporations are held to the same standards that are applied to the directors of public corporations.

Fact pattern 14-1 Constance is a CEO of a publicly traded company.She has a meeting with the board of directors regarding raises for officers.Constance tells the board that the Securities and Exchange Commission has no power to regulate executive compensation and that the agency cannot require disclosure to shareholders.She tells the directors that the officers are entitled to large raises and that the raises can be kept entirely confidential. -Refer to fact pattern 14-1.Which of the following is true regarding the statement by Constance that the Securities and Exchange Commission has no power to require disclosure of executive compensation to shareholders?

The ________ is the price at which an optionee can exercise stock options by purchasing stock.

Which of the following is required by the SEC and provides a narrative overview for stockholders explaining material elements of compensation for a company's named executive officers along with insight for the public into the company's compensation policies?

Executive compensation is generally set by a group of the company's board of directors known as the audit committee.

Cynthia receives health benefits under her employer-sponsored health insurance plan which was covered by ERISA.She applied for pre-approval for surgery to repair a deviated septum in her nose that she and her physician believed was interfering with her breathing.The plan administrator,Plan X,denied the surgery on the basis that it was cosmetically based.Cynthia proceeded to sue Plan X in a state court in her home state for medical malpractice.The plan administrator's home state is different from that of Cynthia.Which of the following is the most likely result?

ERISA provides that officers and trustees of a pension plan are

Fact pattern 14-1 Constance is a CEO of a publicly traded company.She has a meeting with the board of directors regarding raises for officers.Constance tells the board that the Securities and Exchange Commission has no power to regulate executive compensation and that the agency cannot require disclosure to shareholders.She tells the directors that the officers are entitled to large raises and that the raises can be kept entirely confidential. -Refer to fact pattern 14-1.Which of the following is true regarding the statement by Constance that the Securities and Exchange Commission has no power to regulate executive compensation?

What criticism of restricted stock plans do stock option plans avoid,and how is that done?

In a ________ retirement plan,the employer guarantees the employee a specific payment regardless of the total contributions made to the plan or the plan's investment performance.

________ stock is stock whose sale or acquisition is subject to restrictions imposed by securities laws.