The automation of the compensation process to assist organizations in the acquisition, management and optimization of its workforce.

Total Cash Compensation is calculated as base salary plus any supplemental cash (annual bonus/incentive awards paid over the past year).

The subbudget in Compensation Budgeting refers to a subdivision of a budget unit. For example, within a (superior) budget for bonuses for an organizational unit, there can be subbudgets for smaller co [..]

A means of allowing employees to exercise their awards earlier instead of using the normal vesting schedule, for example, in the event of a merger.

An operation performed by either the Compensation Specialist or the HR Administrator once the line manager has approved the suggested salary increases, bonuses or LTI grants in SAP Manager Self-Servic [..]

Aging data is a common practice of taking salary survey data from a survey provider with a specific effective date and multiplying it by a pay movement factor to bring the data forward to either today [..]

Also called spread. The difference between the predetermined value of a stock and the exercise price. When the spread is a positive number, the option is in the money. If not, it is under water or out [..]

A period during which insiders are not allowed to exercise their awards, usually when important company information is announced, for example, annual or quarterly figures.

Awards can be cancelled if:

The various processes related to remuneration planning and payment within your organization.

An attribute of a matrix dimension. For each segment, you can specify aminimum and a maximum value. For the appraisal dimension, you could for example define the followingsegments: outstanding, good, [..]

A grouping to which internal jobs are assigned for job pricing in Compensation Management.

A process in which compensation is performed for employees and managers. The compensation process is broken down into the following steps:

A unique combination of compensation plan(s) and reviews.

Time interval during which a line manager is able to process a compensation review in SAP Manager Self-Service (MSS).

An overview of the compensation granted to a group of employees.

An IT specialist within an organization responsible for implementing Enterprise Compensation Management and performing complex operations such as stock splits and LTI data exchange with the bank or br [..]

A blend of two or more surveys' jobs to create a composite market result. This is used in Compensation Job Pricing to compare your company's internal compensation levels with the compensatio [..]

The part of the evaluation period during which a compensation plan is within the employee's program. If the program period is shorter than the evaluation period, the guideline values may be prora [..]

A calculation method used for employees who have fulfilled the eligibility requirements of a particular compensation plan only during part of the evaluation period due to job- related events (recent h [..]

A type of stock option that does not meet the IRS criteria for incentive stock options (ISOs) and therefore subject to tax on exercising.

A restricted stock award is a grant of stock by an employer to an employee in which the employee's rights to the awards are limited until the awards vest and cease to be subject to the restrictio [..]

The review period is the time interval during which SAP Manager Self-Service is open for the manager to process a given compensation review.

Salary grade is the salary range or pay line within the Salary Administration Plan.

Structure of job grades and pay ranges within a company.

An attribute of a matrix dimension. For each segment, you can specify a minimum and a maximum value. For the appraisal dimension, you could for example define the following segments: outstanding, good [..]

A method used in matrix guidelines to determine the value of a matrix criterion such as compa-ratio or appraisal for a specific employee.

An infotype affected by the activation of a compensation process. Depending on the the category of the compensation plan, either the basic pay, the bonus, the off-cycle or the LTI infotypes are genera [..]

Required minimum length of a program period for an employee to be macro eligible.

An increase in the number of outstanding shares of a company's stock (and a corresponding decrease in the share price) decided by the board of directors and the shareholders to make them more att [..]

Budgeting module deals with the budgeting of shares.

Market data criteria are ways of organizing the survey data collected from survey providers in the system.

A review type that enables line managers to reward employees for outstanding performance anytime and as often as required.

A person sharing confidential information - especially stock-related information - with a restricted group of high-ranked people within the company, and who must refrain from using it for personal gai [..]

An interface that enables you to send grant and participant data from the company to the bank or broker via the SAP Business Connector.

Awards that have already been granted but not yet exercised (stock options) or vested (restricted stock awards).

A means of grouping employees with common characteristics to determine whether or not they are eligible for a compensation plan.

A rule that determines if an employee is eligible for a compensation plan on the basis of criteria such as length of service, salary, working hours or appraisals.

A set of rules that help you determine whether or not employee groups are eligible for a compensation plan. Eligibility rule variants enable you to define different rules according to employee groups, [..]

A list of compensation relevant data for an employee, such as the salary, employment fraction, organizational unit, and position.

A period used by the system to determine whether a compensation plan belongs to an employee's compensation program. All records of the Compensation Program infotype that are valid during the eval [..]

A period during which an employee is allowed to exercise his/her awards.

Number of awards that have vested and that have already been purchased by the employee.

Exercising typically refers to stock options. Employees exercise their awards when they purchase stock at a predetermined price, that is, the price set on the grant date, irrespective of the stock pri [..]

Number of vested awards that are still available for exercising (vested awards minus exercised awards).

The amount an employee has to pay per share to buy his/her stock. Also known as strike price.

Awards are said to have expired when an employee fails to exercise them before the expiration date.

The price of the stock underlying a stock option that is part of an LTI plan, based on the current market value.

Exempt status defines an employee who, based on duties performed and manner of compensation, shall be exempt from the Fair Labor Standards Act (FLSA) minimum wage and overtime provisions.

Occurs when an employee gives up his/her right to exercise awards due to life events such as termination, retirement, death or disability. Awards that have been cancelled following a life event can al [..]

A grouping of employees with common traits. This grouping can be country-dependent.

A calculation rule that helps you determine the default amount, percentage or number suggested in SAP Manager Self-Service. Additionally, you can define a minimum and/or a maximum limit to be checked [..]

A guideline based on multiple criteria such as employee performance appraisal results, length of service and compa-ratio. Guideline matrices can contain up to three dimensions.

A set of rules that helps you assign a compensation plan to a particular guideline and subsequently restrict your selection. By means of guidelines, you can set default values and limits to be checked [..]

A means of grouping employees to differentiate guidelines that apply to at least one compensation plan. For example, to grant a 10% salary increase to the board members, an 8% to executive employees, [..]

Job family defines a group of jobs having the same nature of work (for example, engineering) but requiring different levels of skill, effort, responsibility, or working conditions (for example, entry- [..]

A guideline criterion such as appraisal, age, length of service or compa-ratio, used for calculating compensation amounts. Each matrix dimension is assigned a method and includes several segments.

A manager who plans and approves the salary adjustments, bonuses and LTI grants suggested by guidelines in SAP Manager Self-Service.

Difference between the tax-relevant price and the exercise price of awards.

The number of incumbents is the number of individuals reported for a particular job for a particular salary.

An event at the employee level such as marriage, retirement or termination, that affects the administration of LTI data, particularly the number of awards, the expiry date and the way vesting is handl [..]

Vesting refers to the process by which awards become exercisable, that is, when an employee is allowed to purchase stock at a predetermined price.

An interface that enables a bank or broker to send exercising data to the company via the SAP Business Connector.

Unvested awards are awards that are not yet available for exercising, for example, awards that vest gradually.