Chapter 1: Compensation Systems in the Global Context

A selective review of the compensation literature was conducted. Compensation is a multidimensional concept and topics covered include base pay, variable pay, individual incentives, ownership, and benefits. A history of compensation, a summary of the current state of knowledge, and directions for future theory, research, and practice are provided. Throughout the chapter global issues are discussed. Our goal for the chapter is to continue to invigorate compensation as an area of study in work psychology.