Difference between revisions of "Cash remuneration"

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2. The Variable pay – a non-fixed monetary (cash) reward paid by an employer to an employee that is contingent on discretion, performance, or results achieved. The most common forms of variable pay are bonuses and incentives.
 
2. The Variable pay – a non-fixed monetary (cash) reward paid by an employer to an employee that is contingent on discretion, performance, or results achieved. The most common forms of variable pay are bonuses and incentives.
 
4. Equity-based compensation – stock or pseudo stock programs an employer uses to provide actual or perceived ownership in the company which ties an employee's compensation to the long-term success of the company. The most common examples are stock options.
 

Revision as of 23:29, 25 March 2020

Cash compensation (hereinafter, the Compensation) is any monetary reward that an employee receives in exchange for the service he or she performs for their employer and/or for his or her time spent upon employer's requests. Usually, the Compensation is a combination of guaranteed pay and variable pay.


Guaranteed pay

Guaranteed pay is a fixed monetary reward paid by an employer to an employee.

Base salaries and wages

Cash allowances

Housing allowance, transport allowance, meal allowance.

Pay differentials

Shift differentials, holiday differentials.

Pay premiums

Night shift, seniority

Profit-sharing

  • Profit-sharing (profit-sharing plan). An organization-wide program that distributes compensation based on some established formula designed around a company's profitability.

Variable pay

  • Bonus. A pay plan that rewards employees for recent performance rather than historical performance.

commissions, incentives

2. The Variable pay – a non-fixed monetary (cash) reward paid by an employer to an employee that is contingent on discretion, performance, or results achieved. The most common forms of variable pay are bonuses and incentives.