CECP Certified Executive Compensation Professional Exam Questions and Answers

The balance sheet

The income statement

The cash flow statement and the income statement

The cash flow statement, along with the balance sheet and income statement

The intention or purpose of the business

A descriptor for how the company works

The financial objectives of the organization

The plan for how the organization generates revenue and makes money

Ask them to review or provide feedback, especially on something you have done for them

Talk to the individuals they report to in advance and gain their support so the stakeholders realize upper management already supports your position

Schedule a meeting of all stakeholders and make a strong case that overcomes all of their objections

Explain in precise terms to each stakeholder how your position is the most realistic approach to the issue or concern

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.   

Pay for time not worked

Hourly pay

Bonuses

Piece rate   

A list of what is owned, what is owed and the equity of an entity

The revenues and expenses incurred by an entity over a period of time

The change during the reporting period in cash and cash equivalents

The profitability of the company as of a specific date

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   

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   

Possess a high level of education and competency in accounting principles

Determine which programs are crucial to the enterprise and which programs are expendable

Partner with multiple departments and external consultants and vendors

Demonstrate broad understanding of principles of financial management and business expertise

To differentiate company financial data from industry competitors to prevent loss of proprietary information

To provide subjective information to key constituents that reflects the company’s performance in the most favorable manner depending on stakeholder priorities

To create a historical record of financial performance and identify trends that may justify changes in strategy

To promote consistency of communication regarding company performance and value

Ensuring support from all internal and external stakeholders

Estimating results based on historical data

Using statistical methods to predict outcomes

Determining, sourcing and collecting appropriate data

The corporate mission

The business strategy

The compensation strategy

The corporate vision