What are 'fringe benefits' in relation to employee compensation?

Fringe benefits refer to the additional perks provided to employees beyond their regular salaries or wages. These benefits are designed to enhance the overall compensation package and can significantly contribute to employee satisfaction and well-being. Examples include health insurance, retirement plans, paid time off, meal allowances, and other non-wage compensations. These benefits often play a crucial role in attracting and retaining talent, as they improve the employees' quality of life and help support their personal and family needs.

The other choices focus on specific forms of compensation or incentives, such as stock options, performance bonuses, or long-term service bonuses, but they do not encompass the broader category of extra benefits that improve employees' overall work experience and health security. Thus, the selection pertaining to additional perks like health insurance and meal allowances accurately captures the essence of what fringe benefits represent in employee compensation.