In: Finance
Considering that stock compensation plans show how the key aspect of stock option compensation is for a company to institute a long-term compensation plan in addition to the traditional short-term cash compensation plan.
What are some of the typical performance measures that a company would use to determine the level of stock options to award their employees?
Answer :- Compensation plans includes the both financial and non financial plans that is to be received by the employees from their firms for providing the service to their firm or organistation. The may generally includes the cash benefits , bonus shares , call options ESOP , Salaries etc. This is generally provided as a reward to the employees for providing best service and also at the desire of the organisations . The Company or organisation may provides some benefits of cash or bonus with the salary which is generally are considered as short term benefits and also these are regarded or referred as total cash compensation.
The typical performance measures that a company would use to determine the level of stock options to award their employees are Evaluating the quality of the work done by the employees , Performance measure on the basis of output given by the emlpoyee or we can say a level of production , Performance measurement can be done also on the basis of sales made by the organisations etc. and many more