An Advantage of a Compensation Cafeteria for Top Executives Is

question 111

Multiple Choice

An advantage of a compensation cafeteria for top executives is the ability for executives to ________.

• A) increase their total compensation
• B) tie earnings to productivity
• C) receive bonuses that supplement their salary versus salary increases
• D) limit their state and federal income taxes through deferring benefits

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Definitions:

Dividend Payout

Dividend payout refers to the portion of a company's earnings distributed to shareholders as dividends.

Profit Margin

A financial metric used to assess a company's profitability by calculating the percentage of revenue that exceeds the costs of goods sold.

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business.

Dividend Payout Ratio

The fraction of net earnings a firm pays to its shareholders as dividends, expressed as a percentage.