Running head: THREE TYPES OF COMPENSATION AND OTHER BENEFITS1
Three Types of Compensation and Other Benefits
Ruben Torres
Keiser University
Dr. Jimmy Hinton
ACG 4111
June 19, 2016
THREE TYPES OF COMPENSATION AND OTHER BENEFITS 2
Abstract
The topic of the research is to compare and contrast the relationship, similarities, and differences
between three compensation models. Many businesses compensate employee with salaries, and
in addition also provide other forms of compensation. Compensation plans are designed to
encourage employee to remain employed within the company and to The accounting treatment
and disclosures related to share-based compensation, regular based compensation, and pension
plans. The research also discusses the advantages and disadvantages of the three compensation
models. Many organizations are looking at offering employees additional benefits in
compensation in hopes of retaining their employees for a long term.
THREE TYPES OF COMPENSATION AND OTHER BENEFITS 3
Three Types of Compensation and Other Benefits
Employee compensation and other benefits come in many different forms in today’s
industry. Many businesses compensate employees with salaries, and in addition also provide
other forms of compensation. Different types of compensation exist it to not only provide
employees with a sense of job security, but also to encourage employees to stay employed with
the employers for a long term. Employers offer added benefits to reward tenured employees for
services provided. Greater compensation and other benefits help motivate employees towards a
greater effort to make a company grow and reducing costs since there is a shared interest in the
improvement of the business. Of the many types of compensation and other benefits: share-based
compensation, regular base compensation, and pension plans will be reviewed in this paper. The
