Test Bank for Compensation, 14th Edition by Barry Gerhart
Test Bank for Compensation, 14th Edition by Barry Gerhart
,Test Bank for Compensation, 14th Edition by Barry Gerhart
Chapter 1 Chapter 1
1) Total CEO annual compensation at S&P 500 companies is roughly $12.3 million. At just
over half that total ($6.5 million), which compensation component comprises the majority of that
total compensation amount?
A) Stock option awards
B) Salary
C) Stock grants
D) Bonuses
2) The "say on pay" and clawback provisions are included in which of the following federal
laws?
A) The Dodd-Frank Wall Street Reform and Consumer Protection Act
B) The Affordable Care Act of 2010
C) The Fair Labor Standards Act (FLSA)
D) The Cost-of-Living Act (COLA)
3) One of the reasons why the great majority of the uninsured in the United States are from
working families is that
A) many larger employers do not offer health insurance as it does not guarantee an
increase in productivity levels.
B) health insurance is costlier for larger employers.
C) many small employers are much less likely than larger employers to offer health
insurance to their employees.
D) most workers decline health insurance when it is offered by their employers.
4) The degree to which pay influences individual and aggregate motivation among
employees at any point in time is referred to as a(n):
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,Test Bank for Compensation, 14th Edition by Barry Gerhart
A) sorting effect.
B) incentive effect.
C) turnover effect.
D) directional effect.
5) Which of the following is an example of a relational return?
A) A short-term incentive
B) Employment security
C) Allowances
D) Income protection
6) Which of the following is given as an increment to base pay in recognition of past work
behavior?
A) Merit bonuses
B) Relational returns
C) Merit increases
D) A short-term incentive
7) GreenRain Corp. faces an increase in its employee turnover rate. The CEO calls for a
board meeting with the senior executives to discuss the issue. Who among the following suggests
increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?
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, Test Bank for Compensation, 14th Edition by Barry Gerhart
A) Tom, who suggests increasing the decision-making authorities given to the employees
to make work more challenging
B) Deena, who suggests providing more work/life balance to the employees by increasing
the number of paid leaves
C) Syed, who suggests increasing the medical insurance coverage offered to the
employees
D) Liam, who suggests increasing merit bonuses
8) Which of the following statements concerning cash compensation and the Fair Labor
Standards Act is true?
A) Nonexempt employees have their pay calculated at an hourly wage.
B) Exempt workers receive overtime pay.
C) Managers and professionals usually fit the category of nonexempt worker.
D) Labeling all base pay as "salary" means the employer does not have to follow the
FLSA regulations.
9) Which of the following is true of incentives?
A) They are determined after past performance is evaluated.
B) They are linked to subjective performance measures.
C) They permanently increase labor costs.
D) They are re-earned each pay period.
10) Which of the following companies is taking efforts to improve the work/life balance of its
employees?
Version 1 3
Test Bank for Compensation, 14th Edition by Barry Gerhart
,Test Bank for Compensation, 14th Edition by Barry Gerhart
Chapter 1 Chapter 1
1) Total CEO annual compensation at S&P 500 companies is roughly $12.3 million. At just
over half that total ($6.5 million), which compensation component comprises the majority of that
total compensation amount?
A) Stock option awards
B) Salary
C) Stock grants
D) Bonuses
2) The "say on pay" and clawback provisions are included in which of the following federal
laws?
A) The Dodd-Frank Wall Street Reform and Consumer Protection Act
B) The Affordable Care Act of 2010
C) The Fair Labor Standards Act (FLSA)
D) The Cost-of-Living Act (COLA)
3) One of the reasons why the great majority of the uninsured in the United States are from
working families is that
A) many larger employers do not offer health insurance as it does not guarantee an
increase in productivity levels.
B) health insurance is costlier for larger employers.
C) many small employers are much less likely than larger employers to offer health
insurance to their employees.
D) most workers decline health insurance when it is offered by their employers.
4) The degree to which pay influences individual and aggregate motivation among
employees at any point in time is referred to as a(n):
Version 1 1
,Test Bank for Compensation, 14th Edition by Barry Gerhart
A) sorting effect.
B) incentive effect.
C) turnover effect.
D) directional effect.
5) Which of the following is an example of a relational return?
A) A short-term incentive
B) Employment security
C) Allowances
D) Income protection
6) Which of the following is given as an increment to base pay in recognition of past work
behavior?
A) Merit bonuses
B) Relational returns
C) Merit increases
D) A short-term incentive
7) GreenRain Corp. faces an increase in its employee turnover rate. The CEO calls for a
board meeting with the senior executives to discuss the issue. Who among the following suggests
increasing the relational returns that employees receive to reduce the turnover rate at GreenRain?
Version 1 2
, Test Bank for Compensation, 14th Edition by Barry Gerhart
A) Tom, who suggests increasing the decision-making authorities given to the employees
to make work more challenging
B) Deena, who suggests providing more work/life balance to the employees by increasing
the number of paid leaves
C) Syed, who suggests increasing the medical insurance coverage offered to the
employees
D) Liam, who suggests increasing merit bonuses
8) Which of the following statements concerning cash compensation and the Fair Labor
Standards Act is true?
A) Nonexempt employees have their pay calculated at an hourly wage.
B) Exempt workers receive overtime pay.
C) Managers and professionals usually fit the category of nonexempt worker.
D) Labeling all base pay as "salary" means the employer does not have to follow the
FLSA regulations.
9) Which of the following is true of incentives?
A) They are determined after past performance is evaluated.
B) They are linked to subjective performance measures.
C) They permanently increase labor costs.
D) They are re-earned each pay period.
10) Which of the following companies is taking efforts to improve the work/life balance of its
employees?
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