Star Tribune formula for executive compensation

The Star Tribune has used the same measure of an executive's total compensation since 1997. The method recognizes "realized pay" or "cash value" amount that includes the value of previously issued stock options that are exercised during the year and the value of previously issued stock awards that vested during the year. All the figures for the total compensation are available in a company's annual proxy statement.

The total includes base salary, bonuses based an annual incentive targets, discretionary cash bonuses, miscellaneous income (generally perquisites including personal benefits, travel allowances, ­contributions to 401(k) and non-qualified pension plans, and other miscellaneous items), the value of previously issue stock options that were exercised during the year and the value of restricted stock that vested.

The value of exercised options and vested stock is the value that could have been received if shares were sold immediately after shares were exercised or vested. Some executives elect not to sell any shares or a portion of the shares when they are ­exercised or vest.

The Star Tribune does not include the grant day value of new options or restricted stock awards given during the year. Patrick Kennedy • 612-673-7926