Term
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Definition
A NQ Retirement plan that allows participants to defer current salary with the objective of deferring taxation until a later date.
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Term
Supplemental Executive Retirement Plan
SERP |
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Definition
A NQ Retirement plan paid for by the company and intended to supplement other retirement income. |
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Term
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Definition
Executive bonus life insurance plan - employer pays a bonus to the executive for the purpose of purchasing cash value life insurance. |
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Term
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Definition
Options granted by the company to the executive to purchase shares of company stock at a stated price over a given limited period of time. |
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Term
Incentive Stock Option
ISO |
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Definition
Options to purchase shares of company stock at a stated price over a limited period of time. Different from NQ stock options in that the rules governing ISO's are quite strict and the tax treatment is more favorable to the executive. |
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Term
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Definition
The employer promises to pay the executive the value of some stated number of shares of stock at some later specified date. The stock is not actually set aside, only intered as a promise, and payment may be in cash or possibly in shares of stock. |
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Term
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Definition
An individual who is deemed to participate in an employer's retirement plan - NQ plans are not counted. Active participant status affects the individual's ability to receive a deduction for contributions to an IRA. |
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