What Are the Different Types of Remuneration Packages?

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  • Written By: Geri Terzo
  • Edited By: Shereen Skola
  • Last Modified Date: 13 February 2020
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Working professionals are compensated in different ways, and earnings can be represented through various types of remuneration packages. Some of the components that may be included in such agreements include health and life insurance as well as cash payments and retirement benefits. In some industries, professionals have an option to receive year-end bonuses. Employers could also use stock options, which offer top executives or other staff members a percentage of ownership in the business. Job candidates often have the option to negotiate remuneration packages with potential employers until either both parties are satisfied or go their separate ways.

When an individual is presented with an offer for a position, he or she generally has to consider the worth of the total salary. Remuneration packages are not limited to the cash distributions, although this is a major component of pay. An employer may attempt to attract a candidate by extending other types of rewards, including insurance and retirement benefits. Although an individual may need to make cash deposits into sponsored life, health, and retirement accounts, the required amount is likely to be less than the standard for individual accounts. Subsequently, the person can evaluate in offer in light of these supplements.


There are remuneration packages that offer employees partial ownership in the company that employs them. Often, this benefit is extended through stock options. Employees have the opportunity to purchase equity shares at a predetermined amount, which is usually a sale price compared with the public market value for stocks. Eventually, these individuals can sell the options for a profit. Stock options are often extended to new employees of a start-up business.

In addition to ongoing financial distributions that are part of employees salary, remuneration packages could include annual bonuses. These awards are often made at the discretion on a managing professional. The decision is generally made based on the productivity and performance of staff members as well as the financial condition of the business.

In corporate environment that involve sales, any year-end bonuses might be more predictable. For instance, large financial institutions typically offer additional payouts based on the amount of revenues that a person generates for an employer. In some cases, a remuneration package could define the percentage of a base salary that is eligible for inclusion as a bonus. A company that offers a year-end incentive is likely to create a competitive environment among peers, which could benefit individuals and the business financially.



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