Page 177 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Chapter 4. The Stakeholders 163

Name Fees Stock Option Non-equity Change in All Other Total
Earned Awards Awards Incentive Plan Pension Compensation ($)
or Paid ($) ($) Compensation Value and ($)
in Cash ($) Nonqualified
($) Deferred
Compensation
Earnings

(a) (b) (c) (d) (e) (f) (g) (h)
A

B
C

D
E

Table 4-38. Director compensation table

Summary of Required Information. As can be seen, the SEC requirements for reporting
executive and director compensation are quite extensive. While the above descriptions are
good-faith efforts to describe the 2006 disclosure requirements, it is important that the
reader look to the SEC documents for accurate, complete, and detailed descriptions and
requirements.
In addition to rules set down by the SEC (and appropriate states), for publicly traded
companies, the exchange on which a particular company’s stock is listed may also have
requirements. Remember too that security laws in many situations also exist at the state level.
Also, 162(m) and incentive stock option plans require stockholder approval as stated in the
Internal Revenue Code.
Rulemaker Summary. Rulemakers’ interest in executive compensation was low during
the first quarter of the twentieth century, as seen in Table 4-39, but moved into high gear in
the next quarter with wage controls, high tax rates, and SEC action. Pay guidelines and

Incentives
Time Period Salary Benefits Perks Short Term Long Term

1900–1924 Low Low Low Low Low
1925–1949 High Low Low High High

1950–1974 High Moderate High Moderate Moderate
1975–1999 High Moderate High High High

2000–Present High Moderate High High High
Table 4-39. Rulemakers’ interest in executive compensation