Final answer:
A cash achievement award is the best example of direct compensation as it is a tangible and immediate monetary reward provided to an employee for their performance.
Step-by-step explanation:
The question pertains to which form of compensation is considered direct compensation. Among the options provided, a cash achievement award is the best example of direct compensation. It is a straightforward monetary reward given to an employee for their performance or achievements. This type of compensation is tangible and immediately beneficial to the employee and differs from indirect compensation such as employee insurance, retirement plans, and Employer payments to Social Security including unemployment and worker's compensation insurance.
Other benefits like the use of a company car, deferred pay, and disability insurance fall into different categories of indirect compensation. For instance, workman's compensation insurance is a form of protection that employers provide to cover employees in case of job-related injuries, while pension insurance assures employees of a retirement income.