Compensation committees are increasingly using so-called “tally sheets”—also called “total awards” by some—to get a better handle on exactly how much money top executives and other employees are costing their companies.
The tally sheets are not exactly a sophisticated exercise drawing on complex computer programs; rather, they typically require the scorekeepers to “tally” the total amount a company shells out to an individual. This usually includes such proxy-table items as salary, bonus, restricted stock, the value of options and other long-term incentive plan awards. It also includes the value of perks, including health care, amount spent on travel and entertainment, use of the company’s airplane, and other things like this as well as the value of severance payments, including change-of-control agreements and supplementary pension plans.
