What Is the USA PATRIOT Act? The Patriot Act, or USA PATRIOT Act, was passed shortly after the terrorist attacks in the United States that occurred on September 11, 2001, and gave law enforcement agencies broader powers to investigate, indict, and bring terrorists to justice. It also led to increased penalties for committing and supporting terrorist
What Is a Patronage Dividend? A patronage dividend, also known as a patronage refund, is a distribution that a cooperative pays to its members or investors. Patronage dividends are given based on a proportion of profit that the business makes. Once this amount is determined, management calculates the dividend according to how much each member
Paul Krugman is a Neo-Keynesian economist, Nobel laureate, academic, author, and media columnist, known for his work on international trade theory and economic geography. Considered one of the world’s most influential economists, Krugman is renowned for redefining existing theories of international trade and either founding or co-founding several new disciplines in international economics, from New
What Is Payable on Death (POD)? Payable on death (POD) is an arrangement between a bank or credit union and a client that designates beneficiaries to receive all of the client’s assets. The immediate transfer of assets is triggered by the death of the client. Though morbid, these structures are important to understand. Payable on
What Is Pay As You Earn? Pay As You Earn (PAYE) refers either to a system of income tax withholding by employers, or an income-based system for student loan repayments. In the context of taxes, Pay As You Earn requires employers to deduct income tax — and in some cases the employee portion of social
What Is a Pay-As-You-Go Pension Plan? A pay-as-you-go pension plan is a retirement arrangement where the plan beneficiaries decide how much they want to contribute, either by having the specified amount regularly deducted from their paycheck or by contributing the desired amount in a lump sum. A pay-as-you-go pension plan is similar to a 401(k).
What Is the Payback Period? The term payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, it is the length of time an investment reaches a breakeven point. People and corporations mainly invest their money to get paid back, which is why the payback period
What Is Paycheck to Paycheck? Paycheck to paycheck is an expression describing an individual who would be unable to meet financial obligations if unemployed. Those living paycheck to paycheck predominantly devote their salaries to expenses. Living paycheck to paycheck may also mean living with limited or no savings and refer to people at greater financial
What Was the Pay Czar? “Pay czar” was the nickname given to Special Master for Executive Compensation Kenneth Feinberg. The role of the Special Master for Executive Compensation was to monitor compensation paid to executives of firms that received funds under the U.S. Troubled Asset Relief Program (TARP), which bailed out several companies, including banks, during
Pay Czar Clause: An Overview A pay czar clause is a section of boilerplate language added to a financial institution’s executive employment contracts that makes the compensation terms subject to approval by the U.S. government. The pay czar clause became common after the 2008-2009 bailout of financial institutions by the U.S. government. These clauses allow
