The Working Group on Supplemental Pay Disclosure set out to create a conceptual framework to encourage greater consistency in the disclosure of supplemental measures of pay. Each principle of the framework is laid out below. Click on the principle for more detail from the Working Group, as outlined in the working group whitepaper.
The Conceptual Framework
- Assessment of Pay Versus Total Shareholder Return (Realizable Pay) or Pay Versus Performance Metrics (Realized Pay) Should Be Based Upon Salary, Bonus and/or Annual Incentive and Long-Term Incentives But Not Include Changes in Pension Values and Other Compensation, Which Are Not Directly Tied to the Achievement of Performance Objectives.