What Is Corporate Kleptocracy? Corporate kleptocracy is a phrase that describes the greed of corporate executives who use underhanded tactics to siphon off wealth at the expense of shareholders. The phrase came into being as part of a report that accused ex-Hollinger CEO Conrad Black and his associates of allegedly embezzling hundreds of millions of
What Is Corporate Ownership of Life Insurance (COLI)? Corporate ownership of life insurance (COLI), or corporate-owned life insurance, refers to insurance policies taken out by companies on their employees, typically senior-level executives. The company is responsible for making the premium payments, and if the person dies, the company, not the insured person’s family or other heirs
What Is Corporate Refinancing? Corporate refinancing is the process through which a company reorganizes its financial obligations by replacing or restructuring existing debts. Corporate refinancing is often done to improve a company’s financial position. Through refinancing, a company can receive more favorable interest rates, improve their credit quality, and secure more favorable financing options. It
What Is Corporate Reimbursement Coverage? Corporate reimbursement coverage is a form of liability insurance that companies purchase to protect themselves against losses due to legal actions against their directors and officers. It is one of three components of directors and officers (D&O) liability coverage. (Directors and officers (D&O) liability coverage also includes side A, side
What Is a Corporate Resolution? A corporate resolution is a written document created by the board of directors of a company detailing a binding corporate action. A board of directors is a group of people that act as a governing body on behalf of the shareholders of a company. The board helps to set policies, appoint executives
What Is Corporate Sponsorship? A corporate sponsorship is a form of marketing in which a company pays for the right to be associated with a project or program. A common template for corporate sponsorships entails a collaboration between a nonprofit organization and a sponsor corporation, in which the latter funds a project or program managed
What Is Corporate Tax? A corporate tax is a tax on the profits of a corporation. The taxes are paid on a company’s taxable income, which includes revenue minus cost of goods sold (COGS), general and administrative (G&A) expenses, selling and marketing, research and development, depreciation, and other operating costs. Corporate tax rates vary widely by country, with some
What Was Corporate Trade Payment (CTP)? The corporate trade payment (CTP) was a form of transferring funds electronically that is no longer in use today. The CTP system was utilized by corporate and governmental entities to pay creditors using the automated clearing house (ACH) system. The CTP payment network became obsolete due to its lack of
What Is a Corporate Umbrella? A corporate umbrella is a large, generally successful brand name that oversees smaller companies belonging to the same corporation. It adds structure and credibility to the smaller brands without needing to make key organizational decisions regarding products and services. This allows the subsidiary to distinguish itself from the corporation, but with
What Is a Corporate Pension Plan? A corporate pension plan is a benefit that provides income in retirement based on the employee’s length of service to the company and salary history. Pension plans for American workers have become rare outside of government employment. According to the Bureau of Labor Statistics, in 2019, the percentage of
