Stock Compensation

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Dictionary Says

Definition of 'Stock Compensation'

A way corporations use stock options to reward employees. Stock compensation can be very profitable for the employee if the stock prices increases. New companies tend to be riskier than long standing corporations which have a record of proven performance, so they often use stock options to attract long-term employees.
Investopedia Says

Investopedia explains 'Stock Compensation'

This is a common method used by corporations to compensate executives. The theory is that executives will work harder since they want their own stock to rise in value and, therefore, have the best interests of shareholders in mind.

Employees with stock options need to know whether their stock is vested. This means the stock will retain its full value even if they are no longer employed with that company. Tax consequences depend on the fair market value of the stock. If the stock is subject to tax withholding, the tax must be paid in cash even if the employee was compensated in the form of stock. Also referred to as equity compensation.

Search results for

'Stock Compensation'

  • Should Employees Be Compensated With Stock Options?

    http://www.investopedia.com/articles/analyst/091202.asp
    ... (To learn more, see The Dangers Of Options Backdating, The "True" Cost Of
    Stock Options and A New Approach To Equity Compensation.). ...

  • VCA Antech: Generous C-Suite Compensation Provides Opportunity

    http://stocks.investopedia.com/stock-analysis/2011/VCA-Antech-Generous-C-Suite-Compensation-Provides-Opportunity-WOOF-SCI-ULTA-HI-RGS0808.aspx
    ... The adjusted decline was only 2.9%, making it hard to tell if the compensation was
    even an issue for investors. Its stock dropped 9.6% the day after announcing ...

  • How Restricted Stock And RSUs Are Taxed

    http://www.investopedia.com/articles/tax/09/restricted-stock-tax.asp
    ... employee productivity. There are many types of stock compensation, and each
    has its own set of rules and regulations. Executives that ...

  • Outrageous CEO Compensation In Natural Gas

    http://stocks.investopedia.com/stock-analysis/2009/Outrageous-CEO-Compensation-In-Natural-Gas-CHKDNRRRCSWNPXPXOM0623.aspx
    ... Bottom Line It appears CEO compensation in the natural gas industry is no different
    than any other. ... You decide which is the better stock to own. ...

  • CEO Compensation: Battle Of The Sexes

    http://stocks.investopedia.com/stock-analysis/2009/CEO-Compensation-Battle-Of-The-Sexes-AVP-HNZ-TJX-JCP-PEP-KO-RAI-MHP-SCHN-STLD1007.aspx
    ... As well, outright compensation is not the bottom line for most CEOs; to get a complete
    story, we should also look at stock options, bonuses and benefits. ...

  • Executive Compensation Gone Mad

    http://stocks.investopedia.com/stock-analysis/2010/Executive-Compensation-Gone-Mad-ARO-F-CEPH-GOOG-JWN0616.aspx
    ... However, in fairness to Mr. Senk, $25.6 million of his $29.9 million in total
    compensation were performance stock units that won't vest until 2015 at the ...

  • A New Approach To Equity Compensation

    http://www.investopedia.com/articles/06/FAS123R.asp
    ... Even though FAS 123R puts stock-based compensation expenses on companies' balance
    sheets, the people who receive the most stock options will likely keep seeing ...

  • What is a stock-for-stock merger and how does this corporate ...

    http://www.investopedia.com/ask/answers/06/stockforstockmergerdetails.asp
    ... Acquisitions can be made with a mixture of cash and stock, or with all stock
    compensation, which is called a "stock-for-stock" merger. ...

  • Employee Stock Options: Introduction | Investopedia

    http://www.investopedia.com/university/employee-stock-options-eso
    ... take. While restricted stock and incentive stock options are important areas
    of equity compensation, they will not be explored here. ...

  • Employee Stock Options: Introduction | Investopedia

    http://www.investopedia.com/university/employee-stock-options-eso/
    ... take. While restricted stock and incentive stock options are important areas
    of equity compensation, they will not be explored here. ...

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