Pensions
This term is defined as "a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments."
What is a pension?
Executives of companies are also receive compensation that is linked to the value of the company's stock. This is referred to as _____ .
Share-based compensation.
This type of pension guarantees (to employees) fixed annual contributions to a pension plan (e.g., 5% of the employee's salary).
What is a defined contribution plan?
This is a form of employee compensation in which employees are NOT awarded shares of stock, but rather are given the option to buy shares at a specified exercise price within some specified number of years from the date of grant.
What are stock options?
This type of pension guarantees a fixed amount of retirement money available to employees when they retire.
What is a defined benefit plan?
Aside from stock options, other forms of share-based compensation include _____ .
What are: 1. Restricted stock awards, 2. restricted stock units, and 3. stock appreciation rights?
These are three accounting items that appear in the financial statement related to defined benefit plans.
What are: 1. Plan assets, 2. plan liabilities (projected benefit obligation), and 3. pension expense?
This form of EPS is calculated as net income divided by weighted average number of common shares outstanding.
What is basic EPS?
These are the 5 elements that appear in pension expense.
What are: 1. Service cost, 2. interest cost, 3. return on plan assets, 4. prior service costs, and 5. gains and losses on assets and liabilities?
This form of EPS adjusts for stock options that have been granted.
What is diluted EPS?