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Work: Benefits Offered By Employers

Additional Compensation: Stock Options, Deferred Compensation

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Stock Options. Some employers grant stock options, often just to management and executives.

  • Stock options are a right (but not the obligation) to purchase the employer's stock some time in the future at a pre-determined price.
  • This can be a windfall if the market value of the stock is considerably above the option price when you want to sell it. If the stock has not gone up, there is no downside to the employee because the employee has not paid anything.

Deferred Compensation: Some employers offer various methods of deferring compensation, usually for the purpose of reducing an employee's taxes. These plans are usually only offered to highly paid executives. They can either be tax qualified or non-tax qualified.

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