Summary Compensation Table (SCT)
The Summary Compensation Table is the traditional core of every proxy's pay disclosure: one row per named executive, with equity valued at grant date.
What it shows
The SCT lists each named executive officer (NEO) — typically the CEO, CFO and next three highest-paid — with salary, bonus, stock and option award values, non-equity incentive plan payouts, pension earnings and all other compensation, summed into a total.
Equity awards are valued once, on the grant date. That makes the SCT a record of what the board awarded, not what the awards turned out to be worth.
Frequently asked
Why does SCT total differ from Compensation Actually Paid?
Because the SCT values equity at grant while CAP re-values it to fair value each year through vesting. The two diverge exactly as much as the stock price moves after grant — that divergence is the entire point of the pay-versus-performance rule.
Where does the SCT appear?
In the DEF 14A proxy statement under Item 402 of Regulation S-K, before the pay-versus-performance table.
Related terms
Next term: Principal Executive Officer (PEO) (2 of 15)