Compensation programs are structured plans that organizations use to provide financial rewards to their employees. These programs can include salaries, bonuses, and benefits such as health insurance and retirement plans. The goal is to attract, motivate, and retain talent while ensuring that compensation is competitive within the industry. Different types of compensation programs exist, including base pay, incentive pay, and equity compensation. Base pay is the fixed salary an employee receives, while incentive pay rewards performance through bonuses or commissions. Equity compensation offers employees shares in the company, aligning their interests with the organization's success.