Stock Compensation Plan

[stok kuhm-pen-say-shuhn plan]

What is the definition of Stock Compensation Plan?

A fringe benefit that allows employees to purchase the employer's stock at a specified price within a specified period, often used as an incentive or reward.

Using Stock Compensation Plan in an Example

A technology company offers a stock compensation plan to its employees, allowing them to buy shares at a reduced price after three years of service. This plan not only boosts employee morale but also aligns their interests with the growth of the company.

Using Stock Compensation Plan in a sentence

During the meeting, the HR manager explained the benefits of the stock compensation plan and how it could significantly increase our investment portfolios over time.

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