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Total Cash Compensation (TCC) - For this report, TCC is the sum of Base Pay and Annual Bonus.
Base Pay - Annual salary actually paid to the executive during the company's fiscal year.
Bonus - Annual cash and non-cash bonuses paid during the company's fiscal year. Certain non-cash bonuses may be reported under LTI or Other Compensation.
Long-Term Incentives (LTI) - For this report, LTI is any award that is delivered in a specific fiscal year, but is expected to compensate the executive for performance over a longer period of time (either prior or future performance). LTI includes Restricted Stock, Stock Options and Other Long-Term Incentive Plans.
Restricted Stock - Awards of full shares of company stock that carry some restriction (typically a vesting schedule). The value of restricted stock is reported at the full fair value of the shares on the date of the grant.
Stock Options - Stock options are a right granted to employees to purchase company stock at a fixed price at any time over a defined period (term). Options are often granted with an exercise price (purchase price) equal to the stock price at the time of the grant. In this case there is no "intrinsic value" to the option grant because there is no difference between the value of the "underlying stock" and the cost to buy it by exercising the option. However, because the share price may increase above the exercise price at some time during the term of the option, the option does have a theoretical present value today. This value is what is shown in the table above and it is based on the value of the grant reported by the company. Please note that in this report, the category "Stock Options" will also include Stock Appreciation Rights (SARs), which are similar to stock options but deliver cash equal to the gain at exercise.
Also, you can find the number of shares included in this year's option grant to a specific executive by clicking on that executive's name and seeing the individual executive summary. This summary will also show the value that executive received this year by exercising prior option grants.
Note: All numbers and values of Stock Option and SAR grants are based solely on information reported in the "Option/SAR Grants Table" as required to be disclosed by SEC Regulation S-K, Part 229, Item 402(c). (Although the numbers of options/SARs granted shown on the "Summary Compensation Table" (Reg S-K, Part 229, Item 402(b)) normally correspond to the numbers on the "Option/SAR Grants Table," they are different from time to time.)
Present Value of Option Grants - The present value of the option grants is the theoretical value of all options granted to the executive during the fiscal year. The present value is calculated and reported by the company. Companies use different methods for calculating this value. Most companies calculate the present value using either the Black-Scholes option pricing model (or other similar analytical models), or they use an assumed stock appreciate rate of 5% per year and 10% per year. If they used an analytical model, that value is reported above; if they used an assumed stock appreciation rate, the value based on 5% annual appreciation is reported above.
Other Compensation - The SEC requires two columns of "Other Compensation" information to be reported in proxy statements. These two categories are included to cover all compensation-like awards that don't fit in any of these standard categories specified above. The first, "Other Annual Compensation," captures compensation paid out annually. The second, "All Other Compensation," captures any remaining compensation that cannot be classified in the other categories. For this report, both of these categories have been combined, and the result labeled "Other Compensation."
Other Annual Compensation - Perquisites, personal benefits, certain securities and property that have a combined total value greater than the lesser of $50,000 or 10% of the executive's base plus bonus. This will also include elective deferrals of certain other above-market or preferential earnings on stock, stock options, SARs, as well as taxes paid by the company on behalf of the executive, and any stock purchase discounts afforded to the executive.
All Other Compensation - Any compensation paid during the fiscal year that doesn't properly fall into any other category (including "Other Annual Compensation"). This could include items such as termination, retirement, severance, change in control. It may also include above-market or preferential earnings on stock, stock options, SARs that were not deferred at the executive's election. This category will also include company payment of contributions to defined contribution plans (e.g., 401(k)) and company payment of certain insurance policies from which the executive may benefit.
Total Compensation - The report above shows a Total Compensation value for the fiscal year. There is no single, definitive way to calculate the complete annual value of an executive's compensation package. For this report, Total Compensation is the sum of the following payments and awards made during the fiscal year: (1) base pay, (2) bonus, (3) value of restricted stock, (4) LTIP Payments, (5) value of stock options, (6) other annual compensation, and (7) all other compensation. The Total Compensation shown for the year does not include the value of options acquired on exercise or any value for options granted in any other fiscal year because for this methodology, the value of those options is attributable to the fiscal year in which they were granted.
Shares Acquired on Exercise (#) - The company must report the number of shares each executive purchased by exercising stock options during the fiscal year.
Value Realized for Options Exercised - For all options exercised during the fiscal year, the company must also report the gain the executives realize from that exercise. This gain is the difference between the value of the shares at the time of exercise and the cost of the exercise (exercise price). This is sometimes called the "paper gain" because the executive realizes a profit, but it's not in the form of cash until he/she sells the stock.
Remaining Exercisable (vested) Options (#) - This is the net number of total number of options that have been granted to the executive and have not been exercised or forfeited, but are fully vested and free of any other restrictions.
Remaining Unexercisable (non-vested) Options (#) - This is the net number of total number of options that have been granted to the executive and have not been exercised or forfeited, but are either not vested or are otherwise restricted.
Value of Remaining Exercisable Options - This value is the current difference between the total value of all shares underlying the exercisable options at the end of the fiscal year and the cost to the exercise (exercise price(s)) of those options. This is sometimes called the "spread."
Value of Remaining Unexercisable Options - This value is the current difference between the total value of all shares underlying the unexercisable options at the end of the fiscal year and the cost to the exercise (exercise price(s)) of those options. This is sometimes called the "spread."
Rank - For the purposes of comparing executive pay across companies, this report ranks the executive's pay in descending order based on their total cash compensation (base pay plus bonus). The CEO, however, is always given a rank of 1 for his/her company regardless of pay, and the other executives are then ranked "2nd highest paid", "3rd highest paid", and so on. It is important to remember not all companies report the same number of executives in their proxies. Most companies report 5 executives, but some report more and some report less. This means that the lower ranking executive averages may be based on data from fewer companies than the higher ranking executives. Therefore there is a possibility that, for example, the average TCC for 5th highest paid executive could be higher than the average TCC for the 4th highest paid executive.
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