Executive Compensation Plans Are Based on Both Financial and Nonfinancial

question 82

Essay

Executive compensation plans are based on both financial and nonfinancial performance measures. Discuss

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Definitions:

Net Asset Value

The total value of all the assets held by an investment fund or company, minus any liabilities, typically expressed on a per-share basis for mutual funds and ETFs.

Dividend Income Distributions

Payments made to shareholders from a fund's income derived from dividends on stocks that it owns, typically made on a regular basis.

Capital Gains

The profit from the sale of an asset or investment above its purchase price.

Commingled Funds

Investment funds pooling assets from various accounts, allowing for diversified management and investment in a range of securities.