Another internal condition that impacts TR philosophy is organizational structure. Organizations that answer to a parent company or corporate headquarters have additional constraints to consider when making total rewards decisions, such as the need to conform to the compensation and benefits philosophy of the parent corporation. The compensation committee of the board of directors for a publicly traded company also has significant input and in many cases must give approval for several types of total rewards programs, including stock option grants, executive compensation in general, pension plans, and so on.Another condition is the concept of organizational justice in compensation as it relates to the establishment of pay equity. Equity in compensation ensures that what an employee brings to the job (inputs) and what the employee receives (outcomes) are fair and equitable when compared to both the internal factors and external conditions. Examples of inputs are employee knowledge, skills, and abilities; examples of outcomes are base pay, variable pay, and benefits: