GlossarySummary Compensation Table columns
Bonus
Also called discretionary bonus, cash bonus.
Cash paid outside a pre-set incentive plan. On CompensationBase, Bonus is grouped with non-equity incentives as “Incentives” in the mix bar, but it is a distinct SCT column.
What it is
Bonus in the SCT is the discretionary or non-plan cash award for the year: a sign-on bonus, a special retention bonus, or an annual bonus the company does not treat as paid under a pre-set incentive plan. It is a separate column from Non-Equity Incentive Plan Compensation, which is the formulaic annual (or sometimes multi-year cash) plan.
CompensationBase keeps the filing labels distinct. Mix bars then group bonus and non-equity incentives together as “incentives” so cash variable pay is visible in one slice.
Why companies use it
Discretionary bonuses let a committee recognize work that the formula missed: a deal, a crisis, or a hire. Sign-on cash replaces a bonus the executive forfeited elsewhere.
Some companies still label the entire annual cash incentive as “Bonus” in the table; others split it. The header in the filing, not the CD&A nickname, controls the column.
Pros
- Flexible cash without issuing stock.
- Visible in its own SCT column when the company uses it.
- Shareholders can see one-time cash that is not part of the recurring formula.
Cons
- Discretionary cash is harder to test against stated goals.
- Inconsistent labeling between “bonus” and “non-equity incentive” makes cross-company cash comparisons messy.
- A large bonus can be a hidden new-hire or severance-like payment.
Examples
Sign-on cash
A new CFO receives a $2 million cash sign-on in the Bonus column plus RSUs in Stock Awards. The bonus is one-time; repeating it in a peer ranking would be a mistake.
Same cash, different column
Company A puts a $4 million annual cash payout in Non-Equity Incentive Plan Compensation because it was earned under the 162(m)-style plan document. Company B puts a similar $4 million in Bonus. Mix bars treat both as incentives; the glossary does not merge the legal labels.
On CompensationBase
The SCT Bonus column is distinct from non-equity incentive plan compensation. Mix bars group both as incentives; the glossary keeps the filing labels separate.
Related terms
- Non-equity incentive plan compensation
Cash paid under a pre-established bonus or incentive plan, reported in the SCT Non-Equity Incentive Plan Compensation column. Distinct from a discretionary Bonus.
- Short-term incentive
A one-year cash incentive plan. Payouts usually appear in Bonus or Non-Equity Incentive Plan Compensation, not in equity columns.
- Salary
The cash base pay reported in the SCT Salary column. For some alternative-asset managers this amount is modest and similar across named executives, with most value in other compensation or equity.