Executive compensation is a term that refers to the compensation packages available to executives within an organization. Accordingly, this leader will receive financial or non-financial allowances after their contributions to the company. These allowances include base salary, bonuses, benefits, stock options, benefits, pensions, etc.

 

Once a Company B executive has achieved certain business goals, the company may offer B a non-financial grant in the form of shares to honor B's contribution. This grant is made as restricted stock, which means that B must hold the stock for a certain period before it is sold or converted into common stock.