Pass the WorldatWork Executive Compensation CECP Questions and answers with ExamsMirror

By using cash from other segments of the business

By using its high credit rating from prior years to receive a line of credit until the strategy begins to work

By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even

By identifying and duplicating the strategy used by its main competitor.

What the take-home pay will be

How their pay compares to co-workers

How the company sets compensation budgets

How the company makes pay decisions that affect them

They are based on a predetermined performance and reward schedule.

They are offered to motivate employee performance.

They are intended to align the interests of the employee with those of the organization.

They tend to make up the larger portion of an employee's total compensation.   

Pricing your products appropriately

Understanding your business and its competitive strengths and weaknesses

Forecasting profit, growth and investment performance to develop realistic budgets

Evaluating prior year performance for the narrative portion of annual financial reports

Production worker

Account executive

IT contractor

HR Director

The corporate mission

The business strategy

The compensation strategy

The corporate vision   

If employees believe their skills will fall behind their professional peers, they will be afraid to look for another job.

Obtaining and developing skills provides leverage for the employee to seek more compensation.

Opportunities for career advancement are important to employees in their decisions to either join or leave an organization.

The change in working capital over a specific period of time, typically one year

A company’s efficiency in converting short-term capital into cash

A company’s mean capital expenditure per employee

The amount of cash needed to meet the company’s short-term obligations

They typically have the greatest effect on net income and operating results of any organizational expense or program

Their success or failure is closely tied to the success or failure of organizationwide goals and objectives

They have very little effect as long as they are managed effectively and efficiently

They affect the organization’s overall financial status and impact multiple stakeholders across most, if not all, business units

Compensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.

Compensation that is nondiscretionary and does not vary according to performance or results

Compensation that is contingent on discretion, performance or results

Compensation that is determined by the organization's pay structure