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'compensation plan' is correct and usable in written English.
You can use it when talking about a plan designed to provide employee compensation, usually financial. For example, "The new compensation plan includes increased hourly wages and a 401k plan."
Exact(60)
At the same time, UBS announced the planned elimination of 8,700 jobs and had implemented a new compensation plan.
We introduced a variable compensation plan.
Mr. Putin responded by again describing the compensation plan.
Knight's chief executive called Nasdaq's compensation plan "underwhelming at best".
The S.E.C. approved the compensation plan backed by Mr. Becker.
In fact, his compensation plan depends on it.
Shareholders also voted overwhelmingly against the company's executive compensation plan, although the vote is only advisory.
The article envisions a compensation plan for settlers who voluntarily relocate to within Israel's borders.
Mr. Tian has devised a performance-based compensation plan for his managers.
"This compensation plan should be regarded as an investment in the company's future".
DealBook » Morgan Stanley Shareholders Approve Executive Compensation Plan || At Morgan Stanley's annual meeting on Tuesday, 86.2 percent of shareholders approved the executive compensation plan, compared with 94.8 percent a year ago.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com