Compensation Glossary
Welcome to ERI SalaryExpert's compensation glossary, your resource for commonly used terms, formulas, and phrases related to compensation.
Controlled Foreign Corporation
Treated by the IRS as a U.S. tax reporting entity because of voting control or ownership of U.S. citizens, this is really an offshore company. Technically it is defined as a foreign corporation in which U.S. person(s) has 10% or more ownership or voting control.
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Lead-Lag Pay Structure Policy
Lump Sum Merit
Annual Incentive
Step Rates
Benchmark Job
Market Pricing
Works Council
Gender Pay Gap
Defined Contribution Plans
Salary Structure Change
Benchmarking
Restricted Stock
Lead Pay Structure Policy
Cost of Living
General Salary Increase
Red Circle Rate
Range
Market Based Salary Increase Budget
Standard Deviation
Year of Service
Market Index
Stock Option Incentive
Mix
Cost of Labor
Job Evaluation
Aging Survey Data
Percentile
Salary Range
Individual Retirement Account (IRA)
Range Spread
Long-Term Incentive Plan
Mean
Lag the Market
Quartile
Internal Equity
FICA
Midpoint Progression
Broadbanding
Merit Increase
Consumer Price Index (CPI)
Coefficient of Determination
Shift Differentials
Median
Sales Compensation
Compensable Factors
Turnover
Bonus
Minimum Wage
Black-Scholes Model Z
Promotional Increase
Pay Equity
Total Rewards
Compa-Ratio
Standard Error of Estimate
Foreign Earned Income Exclusion
Hours of Work
Salary Grade
Job Family
Defined Benefit Plans
Geographic Differential
Demotion
Range Penetration
Pay Grade
Green Circle Rate
Pay Range Overlap
Mode
Linear Regression
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About Us
ERI SalaryExpert was launched in 2000 by ERI Economic Research Institute to help organizations and individuals optimize salary planning. Our robust compensation management solution houses the global salary survey data and applications needed to design competitive and effective compensation structures. From benchmarking with reliable market data to analyzing geographic differentials and conducting pay equity analyses, our intelligent platform is an innovative way of merging integral salary survey data with efficient features, all in one system.
Learn More
Featured White Paper
Common Compensation Terms and Formulas - January 2026
Find commonly used compensation terms and formulas for your reference when planning compensation.
Ready to Streamline Your Compensation Strategy with Us?
Discover how our Assessor Platform can help you attract top talent, stay on top of market trends, and set your organization up for success, all in one platform.
Try a Free Demo
About Us
ERI SalaryExpert was launched in 2000 by ERI Economic Research Institute to help organizations and individuals optimize salary planning. Our robust compensation management solution houses the global salary survey data and applications needed to design competitive and effective compensation structures. From benchmarking with reliable market data to analyzing geographic differentials and conducting pay equity analyses, our intelligent platform is an innovative way of merging integral salary survey data with efficient features, all in one system.
Learn More