The SEC requires companies to report compensation in seven categories on Form DEF
14A. Data collection included all seven compensation amounts; however, analyses included
only stock awards, option awards, and non-equity incentives. Dividend payments for unearned
restricted stock and reported in Other Compensation were included in EI calculations. The focus
of this study was the homogenization of incentive compensation structures. Bonus was notincluded in non-equity incentives because it is not associated with an incentive plan (SEC, 2006).
Definitions for all seven SEC-required compensation categories and total compensation follow: