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To compile its compensation scorecard, Furniture Today examined proxy statements, annual reports and other financial reports that companies with publicly traded stock or debt are required to file with the Securities and Exchange Commission.
Companies making such filings typically are required to disclose compensation of their five highest-paid executives, although our scorecard generally lists only the top two.
An executive’s total compensation was computed by adding salary, bonus and other annual compensation, as well as the net gains on any stock options exercised during the year. The value of any new and/or unexercised options or other long-term incentive programs was excluded.
The “other annual compensation” category typically included the company’s contributions to the individual’s 401(k) account, company-paid life and disability insurance premiums, automobile allowances and relocation expenses
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