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Compensation Dictionary

A COMPILATION OF KEY COMPENSATION TERMS

In an effort to provide our readers with valuable resources, we have put together this dictionary of key compensation terms that will be helpful to anyone in the compensation field. Here you will find all the terms you need to know to have a good grasp on the language of compensation.

The Compensation Dictionary is also available as a PDF.

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are currently 6 names in this directory beginning with the letter C.
CEO PAY RATIO
The ratio between the CEO’s total annual compensation and the median employee’s pay. Public companies are required to disclose this figure in any annual report, proxy, or information statement.
CHANGE IN CONTROL PAYMENT OR GOLDEN PARACHUTE PAYMENT
An agreement to pay a large sum and/or benefits to a company executive who is terminated from his position following a sale, merger, consolidation, or acquisition of a company.
CLAWBACK POLICY
A special clause typically included in employment contracts, by which money already dispersed must be paid back under certain conditions, possibly with added penalty.
COMPENSATION
The total cash and non-cash payments given to an employee in exchange for services performed and includes base pay, commissions, bonuses, benefits, stock options and other forms of non-cashbenefits.
COMPENSATION CONSULTANT
Experts in the design and implementation of compensation plans, the creation of proper incentives for employees, and advising companies on compensation trends and the current pay rates for given job positions.
COMPENSATION DISCUSSION AND ANALYSIS (CD&A)
The CD&A is a required part of a company’s annual proxy statement that provides narrative disclosure explaining all material elements of the company’s executive compensation objectives and policies and puts it into perspectives for shareholders.


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