1. Money

Variable Compensation - Profit Sharing, Bonuses, Stock Options

Modern organizations are making variable compensation a significant percentage of employee compensation in the form of profit sharing, bonuses, and stock options. This ensures that employees prosper when the company prospers. The higher the position level within the organization, the more likely the employee will receive significant portions of his or her salary in variable compensation.

Variable Pay
Variable pay is used generally to recognize and reward employee contribution toward company productivity, profitability, team work, safety, quality, or some other metric deemed important. Variable pay changes depending upon the circumstances. Learn more about variable pay.

Merit Pay
Merit pay is an approach to compensation that rewards the higher performing employees with additional pay or incentive pay in the form of bonuses, profit sharing and more. Find out more about why you might want to consider merit pay as a portion of compensation.

Profit Sharing
Are you familiar with profit sharing? It's an attractive component of a variable pay plan for employees. It shares the organization's success with employees. Find out more about profit sharing.

Medicare Tax
Looking for a basic definition of the medicare tax? Your employer has to withhold it. Learn more.

What Is an ESOP?
Want to know what an ESOP is and the advantages for employees and owners of a company with an Employee Stock Ownership Plan? Here is how an ESOP works as part of an employee's variable compensation.

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