Stock Base Compensation - What Happens When Your Stock Price Goes Down?

Many software and tack companies issue large stock base compensation schemes to reward thei employees increased loyalty. But what happens when the stock prices of these companies normalize, as has already happened in some cases? Do they keep the stock base comp scheme the same, but issue more stock to compensate for the lower share price, and therefore dilute owners more? Questioned mark, do they start to pay their employees in cash and in turn, worse in their margins?