When I reflect or attempt to define compensation in my own terms to others, it's the complete benefits, pay, and perks that are offered by an employer for a specific role or wide range of roles for employees. Compensation is not simply base pay, although base pay is important we must think a little deeper as well. From stock options, to incentives, to insurance premiums, to flexibility for work/life balance. That said, base pay is often a driving factor of role acceptance and retention. From my perspective, as an employee, the most appropriate viewpoint on compensation is return. Total Return includes total compensation (cash compensation and benefits) and relations returns (recognition, job security, and learning). (Newman, et al., Page 13). This is the complete package I use to define compensation