Pay Elements
A fixed amount that an employer agrees to pay an employee in exchange for time and services agreed upon before the employee begins working
What is base salary?
The section of an annual proxy statement in which the company explains how and why it decided to pay its top executives what it did
What is the CD&A?
Calculated by adding interest, tax, depreciation, and amortization expenses to net income
What is EBITDA?
A legal contract between an employer and an executive that outlines the terms of their working relationship
What is an employment agreement?
Total cash compensation + total LTI (RSUs, PSUs, SOs)
Base salary + short-term incentive
What is TCC?
Top five highest paid executive officers
What is Named Executive Officers?
Measure of financial performance, indicating the total amount an investor reaps from an investment—specifically, equities or shares of stock
What is TSR?
Announces significant events relevant to shareholders
What is an 8-K?
Compensation that is earned and paid based upon the achievement of performance goals over a one-year period
What is STI?
Compensation that is earned and paid based upon the achievement of performance goals over a period of multiple years
What is LTI?
Table that shows total compensation by individual executive
What is the SCT?
Net profit divided by number of common shares outstanding
What is EPS?
Highlights new board of director nominees, proposed executive salary and compensation, and any other information a shareholder may need to vote on an issue
What is a DEF14A?
Award of stock shares that an employee will receive in the future once certain performance conditions are met
What is PSUs?
Award of stock shares that has certain restrictions attached to it, typically a prohibition on selling or transferring it before a certain date
Table that provides line-by-line disclosure of each award made to an NEO in the prior fiscal year
What is the GOPA?
Total market value of all outstanding shares
What is market cap?
SEC filing made by officers, directors and major shareholders (10 percent or greater) of a company to disclose the acquisition or sale of company stock or related securities
What is a Form 4?
The return an asset or fund achieved over a period of time compared to a benchmark
What is rTSR?
A form of equity compensation that gives an employee the right to buy a specific number of shares at a predetermined price
What is stock options?
Table that displays, by award, unexercised stock options, unvested equity and outstanding equity incentive plans for each NEO as of the end of the fiscal year
What is the OET?
The amount of money a company generates from selling products or services during a fixed period
What is total revenue?
Report filed annually by public companies about their financial performance
What is a 10-K?
Value of award is estimated using the Black-Scholes ratio
What is stock options?