The Accounting Treatment and Disclosures Related To Three Types of Com Essay

The Accounting Treatment and Disclosures Related To Three Types of Compensation and Other Benefits - bear witness ExampleThese services generally have many beneficial impacts on the organization. As such, it is important to honor the employees adequately in the form of compensation and other welfares. The compensation benefits include a set of programs which be aimed at attracting capable employees to a company. The compensation benefits friend to motivate the employees to perform better and also help to retain more skills within the organization. A satisfactory compensation will help in decrease the attrition rate in a company and also contribute significantly to human imaginativeness management in a business.The three types of compensation benefits considered in this report are share-based compensation which includes logical argument options and restricted stocks, pension plans and regular base compensation. Share-based compensation is becoming more popular among the local a s well as multinational organizations. The benefits of share-based compensation are many. The most noticeable advantage of share-based compensation is that it gives a sense of inclusion to the employees as the share-based compensation is associated with privileges of equity self-control. The main purpose of the share-based compensation benefits is to support the interests of the shareholders, employees as well as the management of the company. If the employees have a stake in the company through the ownership of certain shares, it is highly likely that the employees will perform better to ensure that the sales and profit take of the company is subjoind. An increase in the profitability and revenue generation of the company would result in an increase in the share prices of the company. If the employees are given share-based compensation benefits, an increase in the share prices would mean benefit for the employee as well. Thus, this acts as a win-win situation for the managers, i nvestors as well as the employees of a business. Share-based compensation is jet to both established companies and startup companies.