There are numerous ways to compensate key employees that maximize their performance and encourage their loyalty to the company, and one way or another a company must engage in effective strategies to reward their key employees. Those strategies may include those mentioned above or others too numerous to mention. However, whichever strategy your company follows, take the time to fully consider the tax, legal, financial, and HR ramifications (both short and long term) of the strategy you choose so that the promises you make are the promises you can keep while your company continues to thrive.
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