March 24, 2010
Reminder: How the Press Handles the Summary Compensation Table
– Ning Chiu, Davis Polk & Wardwell
Just a reminder that some of the press reports of executive pay continues to differ from the total in the Summary Compensation Table from the proxy statement. The Associated Press’ calculation of total pay include salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. They exclude changes in the present value of pension benefits.
The AP stories are picked up by the NYTimes and others (Forbes, Reuters). So what you’ve been reading from various sources on different companies’ pay is most likely the AP calculation. And the WSJ uses the SCT as reported in the proxy statement, indicating that they include changes in pension values.