CAMOUFLAGE - General Meaning
Something that is meant to hide something, or behaviour that is intended to hide the truth. Generally used with respect to the ability of animals to hide themselves to prevent being seen or attacked. But it has a great meaning in white collar compensation that are being tried to prevent from decades. Lets under the concept of Camouflage Compensation.
CAMOUFLAGE COMPENSATION
Camouflage compensation refers to the benefits granted to the upper management of an entity, but which are occluded in financial statements so as to hide their true nature or value. As we all know regulations are made to promote transperancy but the compensation to person who is responsible for managing the company is somewhat a tougher task for regulators.
Some types of camouflage compensation include non-qualified deferred compensation plans, supplemental executive retirement plans (SERPs), stock options, stock appreciation rights, share grants or any other potential place where compensation can be hidden from analysts and shareholders.
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