Stock Compensation
The payment of stock in lieu of cash for services provided.
Investopedia Commentary
This is a common method used by corporations to compensate executives. The theory is that executives will work harder since they want their own stock to rise in value and, therefore, have the best interests of shareholders in mind.
Related Links
Option Compensation - Part One
Option Compensation - Part Two
See also: Corporate Governance, Shareholder, Stakeholder