A COMPENSATION is the broad combination of salary and the fringe benefits provided by the employer to the employee. This can help attract and retain employees and increase their motivation to work. A compensation package can include bonuses, health insurance, retirement plans, etc.
Now, a NONQUALIFIED DEFERRED COMPENSATION PLAN is a broad, general description for any arrangement under which the employer and employee agree to, where the employer accepts to pay the employee sometime in the future, permitting employees to elect to forgo income currently earned until a later time or event as stated in the plan.
Marginal productivity is the increase in amount of one unit of output with the one unit increase of input. Will can produce higher grade when he studies more hours. His grade will increase by one level when he studies more. His grade production function is the level of increase in his output.
