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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What type of equity incentive gives employees the right to purchase company shares at a specified price?

A) Stock/share grants
B) Stock/share options
C) Performance units
D) Restricted stock/shares

2. What best describes the most effective tactic for getting stakeholders' attention and buy-in?

A) Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position
B) Ask them to review or provide feedback, especially on something you have done for them
C) Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern
D) Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections

3. Regarding medical plans, what is the out-of-pocket maximum?

A) The maximum the plan will pay if the member is covered by another insurance plan
B) The most that the member will be liable for in relation to co-insurance
C) The limit the member will be required to pay at each doctor visit
D) The lifetime limit for benefits to any one employee

4. What is the top line or starting point of an organization's income?

A) Operating profit
B) Gross profit
C) Revenue
D) Net income

5. How are the compensation communication needs of managers different from those of individual employees?

A) They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
B) They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.
C) They aren't. Managers are concerned about their compensation also.
D) They are also responsible for merit increases, incentives and hiring so they have greater information needs.

Solutions: