GainsharingGroup incentive program that measures improvements in productivity and effectiveness objectives and distributes a portion of each gain to employees.Profit SharingIncentive pay in which payments are a percentage of the organization’s profits and do not become part of the employees’ base salary.Scanlon PlanA gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.Stock OptionsRights to buy a certain number of shares of stock at a specified price.Employee Stock Ownership Plan (ESOP)An arrangement in which the organization distributes shares of stock to all its employees by Placing it in a trust.Balanced ScorecardA combination of performance measures directed toward the company’s long- and short term goals and used as the basis for awarding incentive pay.