PAY
Pay is money earned by an employee as a salary or wage. Payment is to give money to someone in exchange for items or services.
Types of pays: Cash bonuses Compensation Damages Golden parachute Pension Reward Salary Severance deal/pay Stock option
Compensation and damages Compensation – is payment, including salary and other incentives like stock options. Damages – an amount of money paid to a person who has suffered an injustice.
Pension. A pension is a fixed sum paid regularly to a person, typically, given following a retirement from service. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum. The common use of the term pension is to describe the payments a person receives upon retirement, usually under pre-determined legal and/or contractual terms. A recipient of a retirement pension is known as a pensioner or retiree.
Golden parachute A golden parachute is an agreement between a company and an employee (usually upper executive) specifying that the employee will receive certain significant benefits if employment is terminated. Sometimes, certain conditions, typically a change in company ownership, must be met, but often the cause of termination is unspecified. These benefits may include severance pay, cash bonuses, stock options, or other benefits.
Proponents of golden parachutes argue that they provide three main benefits: - Make it easier to hire and retain executives, especially in industries more prone to mergers. - Help an executive to remain objective about the company during the takeover process. - Dissuade takeover attempts by increasing the cost of a takeover, often part of a Poison Pill strategy, although tin parachutes (giving every employee takeover benefits and/or job protection) are generally far more effective in this regard.
Critics have responded to the above by pointing out that: - Dismissal is a risk in any occupation, and executives are already well compensated. - Executives already have a fiduciary responsibility to the company, and should not need additional incentives to stay objective. - Golden parachute costs are a very small percentage of a takeover's costs and do not affect the outcome.
Severance pay A severance package is pay and benefits an employee receives when he or she leaves employment at a company. Severance packages are most typically offered for employees who are laid off or retire. Severance pay was instituted to help protect the newly unemployed. Sometimes, they may be offered for people who resign, regardless of the circumstances; or are fired. Policies for severance packages are often found in a company's employee handbook, and in many countries are subject to strict government regulation. Severance contracts often stipulate that the employee will not sue the employer for wrongful dismissal or attempt to collect on unemployment benefits, and that if the employee does so, then they must return the severance money.
Reward and salary Reward is to give a payment for services performed or for employee in exchange for their services. A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.
Stock option An employee stock option is a call option on the common stock of a company, issued as a form of non-cash compensation. Restrictions on the option (such as vesting and limited transferability) attempt to align the holder's interest with those of the business shareholders. If the company's stock rises, holders of options generally experience a direct financial benefit. This gives employees an incentive to behave in ways that will boost the company's stock price. Employee stock options are mostly offered to management as part of their executive compensation package. They may also be offered to non-executive level staff, especially by businesses that are not yet profitable, insofar as they may have few other means of compensation. Alternatively, employee-type stock options can be offered to non-employees: suppliers, consultants, lawyers and promoters for services rendered. Employee stock options are similar to warrants, which are call options issued by a company with respect to its own stock.
Fat cat is a political term originally describing a rich political donor, also called an angel or big money man. The New York Times has described fat cats as symbols of "a deeply corrupt campaign finance system riddled with loopholes", with Americans seeing them as recipients of the "perks of power", but able to "buy access, influence policy and even veto appointments. " It is also commonly used to describe a rich, greedy person who, due to ownership of large amounts of capital, is able to "live easy" off the work of others.
Keynotes: Board – совет директоров; Budget – бюджет; Compensation – компенсация; Compensation committees (remunaretion committees) – комитет по компенсациям; Contract – контракт; Damages – компенсация за ущерб; Fat cat – денежный мешок; Golden parachute – золотой парашют; Legal action – судебный иск; Pay – выплата; Pension – пенсия; Reward – вознаграждение; Salary – зарплата; Severance deal/pay – выходное пособие; Stock option – опцион на акции.
Group discussion: 1. Who does no more, for what he is paid, will never get more than what he gets. 2. Money does not make you happier. I now have 50 million, and I'm as happy as when I had 48 million. 3. The minimum amount of money sufficient to ensure that your employees every day to go to work, and in the evening did not go to the barricades, called a salary.
