CECP Certified Executive Compensation Professional Exam Question and Answers

The compensation committee’s interpretation of how employees can best meet business objectives

Guidelines that determine the administration of compensation programs

Statement of what the organization believes about how people should be paid

Principles that guide the design of compensation programs

Production worker

Account executive

IT contractor

HR Director

The ability to display confidence and decisiveness that will inspire others and make you a better leader

A greater likelihood of promotion, especially when you are competing with individuals with more experience

Increased marketability, which will lead to qualification for opportunities outside of human resources

It is critical to your career development and a deficiency is very likely to hinder career advancement and success.

Financial Management

HR Management

Resource Management

Policy Management

Revenue minus cost of goods sold

Expenses plus taxes and depreciation

Gross profit minus expenses

Cost of goods sold

Intrinsic

Extrinsic   

They tend to be fairly consistent because the elements of pay may differ, but the concerns are universal.

They generally require a greater degree of detail for lower level employees who have less of an understanding of pay plan design.

They usually require more detail for senior employees regarding plan details and performance and the needs from one employee group to another can vary greatly.

They should be kept to a minimum for employees at all levels to maximize efficiency and efforts can be focused only on those who have questions.

Salary

Piece rate

Hourly rate

Commissions   

At established dates and then every six months thereafter

On January 1 and July 1 of each year

Once when they move a step, and again when the step value changes

At the anniversary date and at the annual merit increase date   

Compensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.

Compensation that is nondiscretionary and does not vary according to performance or results

Compensation that is contingent on discretion, performance or results

Compensation that is determined by the organization's pay structure   

An understanding of the culture and subcultures of your organization

The capacity to manage multiple projects and priorities and meet deadlines

A willingness to take on additional duties and responsibilities when resources are limited

A thorough understanding of the products and/or services your organization provides

The industry it operates in

The bottom line

The organizational headcount

The risk tolerance of compensation leaders