WorldatWork CECP Certified Executive Compensation Professional Exam Exam Practice Test

Ensuring they are appropriately selected, developed, appraised and rewarded

Monitoring individual employee career paths and succession planning

Communicating regularly with line management on performance management

Ensuring that all regulatory and voluntary payroll deductions are properly administered

They are all reported on the balance sheet.

They are all sources of capital.

They all incur the same costs to the business.

Nothing. Each of these is a different financial metric.

The current value of holdings

The current value of holdings and how much it will grow over time at a given rate of return

The desired value in the future and what needs to be invested today to realize that amount

The difference between the desired value in the future and the current value as a percentage of the desired value

To identify a compensation range in which to group multiple jobs with similar value

To meet legal and regulatory requirements for classifying jobs according to market value

To provide documentation that supports termination decisions

To justify paying some employees less than market based on internal administrative limitations   

It usually is a secondary consideration in compensation design.

It is the company's plan for competitive positioning of its products or services.

It must be written after the company's operating plans are approved by senior management.

It is developed for compensation, benefits and the work-life using the HR strategy as a basis.   

Compiling data needed to calculate salary budgets and merit increases

Identifying trends and key messages emerging over time

Reviewing historical trends to complete annual budgets

Providing quarterly incentive estimates for accruals

What direction will we take?

How do we work?

Why are we in business?

How will we achieve our objectives?

Revenue minus cost of goods sold

Expenses plus taxes and depreciation

Gross profit minus expenses

Cost of goods sold

Start-up

Growth

Mature

Decline

In the methods and processes used to make pay decisions

In the details of their individual compensation packages

In the overall program objectives

In the differences in pay levels for the different levels of the organization

The previous quarter

The budget

The same quarter in the previous year, plus the current six-month or nine-month cumulative comparables

The aggregate performance of the same quarter in the previous three years

To control annual fixed costs from base pay adjustments

To elevate employees who are below the midpoint in the range

To reward employees under short-term incentive plans

To make up for benefits not provided by the organization   

Mental health coverage and health care coverage

Pay for time not worked and income protection programs

Unemployment and disability

Defined contribution and defined benefits plans   

Recognition

Bonus

Commission

Profit-sharing

It isn't. The performance review should not be related to pay decisions.

It is related to the extent that it affects variable pay awards. Base pay is based solely on tenure, prior experience and job skills.

It helps managers meet salary budgets by allowing them to adjust review results to align with available salary increase funds.

It provides managers a measure that can be used along with salary planning guidelines to determine appropriate rewards or consequences.