The Capital Purchase Program (CPP) was an initiative under the Troubled Asset Relief Program (TARP) to stabilize the financial system by reinforcing the solvency of major banks through purchasing preferred stock and equity warrants.
Directors' remuneration, also known as directors' emoluments, refers to all forms of compensation directors receive from their office or employment. This includes salaries, fees, wages, perquisites, and other profits, as well as expenses and benefits paid or provided by the employer.
A tax law introduced in 1993 that prohibits a publicly held corporation from taking a deduction for compensation paid to an executive in excess of $1 million per year, unless the compensation is linked to productivity.
A provision in an executive's employment contract that promises substantial severance packages if the individual is terminated or chooses to leave following a change in company ownership or a takeover.
A Phantom Stock Plan is a type of deferred-compensation plan that uses the employer's stock as a basis for determining the value of the compensation payment. It provides employees with the benefits of stock ownership without actually awarding them any company stock.
A Proxy Statement is a document required by the Securities and Exchange Commission (SEC) to be provided to shareholders before they vote by proxy on company matters. It includes information on proposed members of the board of directors, inside directors' salaries, and pertinent information regarding their bonus and option plans.
