A pay plan that gives an employee cash or stock equal to the difference between some specified stock price and the quoted market price at some future time period is

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This pay plan is known as stock appreciation rights, where employees receive either cash or stocks when the company's stock price is higher than the market price at some future time period. ESOP is an employee stock ownership plan where companies provide employees with stocks as a benefit. Profit sharing is a pay plan where employees receive a portion of the company's profits. Merit pay is a pay plan where employees are rewarded based on their performance.

A Pay Plan That Gives an Employee Cash or Stock