Direct Compensation Definition
Direct compensation is a type of compensation that involves immediate and direct monetary payment to the employee.
Direct Compensation Extended Definition
Direct compensation is the monetary benefit a business gives its employees in return for their work. This includes an employee’s:
- Base pay
- Performance-based variable pay
- Stock options
It may also include certain types of allowances, such as housing, travel, meal, or car allowances.
What Does Direct Compensation Include?
Last Updated By
Maria Tanski-Phillips | Mar 02, 2023