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Stock Compensation

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Stock Compensation
An agreement in which an employee, usually a high-placed executive, receives stock in the company in addition to or instead of cash as salary. If the share price for the company increases, stock compensation can be very profitable for the employee. The idea behind stock compensation is to give the employee a significant stake in the success of the company, which will, in turn, encourage him/her to act in the best interest of shareholders. See also: Qualifying stock option.


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2 billion in such charges to conform to new accounting standards for employee stock compensation.
123, the FASB defined a fair value method of accounting for employee stock options/awards and encouraged all reporting entities to adopt that method of accounting for all employee stock compensation plans.
The Financial Accounting Standards Board's newest rule will send CEOs and CFOs scurrying to turn on their computers, while boards re-evaluate stock compensation plans and shareholders attempt to interpret two sets of numbers.
 
 
 
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