Compensation Expense means all base salary and benefits expense, including employer 401 (k) plan matching contributions and any deferred compensation plan expense, for employees of NCLP or former employees of NCLP or Seller. Compensation Expense shall have the meaning specified in Section 4.2 (h) hereof.
Accounting for Stock Based Compensation Stock Based Compensation is the expense in the income statement in which the company uses its own stock to reward the employees. It usually provides to the key management such as CEO, CFO, and other Executives.
Record compensation expense base on the option valuation after the vested date. Company XYZ provides 1,000 stock options to the CFO, it allows him to purchase the stock at $10 per share in the next two years. The fair value of the option is $ 8 per share based on company calculation.
Compensation is a cash or non-cash payment made in exchange for services rendered. Compensation can include base pay, bonuses, commissions , merit pay, and tip income. It can also include ancillary or deferred payments, such as stock options , vacation pay , pension benefits, free parking, and medical insurance.