compensation means rewards paid by the corporates to its workers in the form of stocks instead of cash.They pay in the form of stocks because sometimes they dont have enough cash to pay to their workers. stocks can be some unit and the corporate issues stocks in the form of shares to their employees according to the terms and conditions listed in the companys policy. They have to pay tax also for the stocks even if they compensate. The employees employed should know whether the stocks are vested by the company for high returns and if they get the benefits. Also they should carefully read the terms and conditions before they are employed in such companies.Some firms sometimes offer stocks to their workers with some unit of shares and tell them to invest for a specific period for a high returns.The rate of per share is set by the corporates for a specific term and the workers have the option to buy a certain quantity of stocks according to their choice. Stock compensation can be very profitable for the employee if the stock prices increases.
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