Deferred compensation techniques are currently used in the American work place. What are they and how do they benefit the employer and the employee?
Deferred compensation is pay that was earned on current performance but is paid later to the employee. The compensation may include profit sharing plans, pensions, and stock-based plans like ESOPs. The payment by the employer can be deducted currently for tax purposes but the employee does not recognize it as income until it is received. In stock option plans, earnings in the plan are not taxable to the employee until the plan is distributed. Size of the plans are affected by the firm's stock value and encourage employees to take a more positive attitude about the company's future.
You might also like to view...
Test-retest reliability is an approach for assessing reliability in which respondents are administered identical sets of scale items at two different times under as nearly equivalent conditions as possible
Indicate whether the statement is true or false
The concept of criticality in a communication network involves
A. how visible the task performance is to others in the organization. B. the degree to which the key individual can exercise discretion in how certain decisions are made or who gains access. C. the essentiality of the information that flows through the node to the organization's mission, major task, or key product. D. the amount of information that passes through a node, the number of transactions that occur through the node, or the degree to which the node is central to managing information.
Last year Lawn Corporation reported sales of $115,000 on its income statement. During the year, accounts receivable decreased by $10,000 and accounts payable increased by $15,000. The company uses the direct method to determine the net cash provided by (used in) operating activities on the statement of cash flows. The sales revenue adjusted to a cash basis for the year would be:
A. $100,000 B. $125,000 C. $90,000 D. $140,000
When delivering negative organizational news, it is necessary to be candid about what is happening, why, and its effect on employees, customers, and the public
Indicate whether the statement is true or false