GlossarySummary Compensation Table columns
Non-equity incentive plan compensation
Also called NEI, nonequity incentive, annual incentive payout.
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.
What it is
Non-equity incentive plan compensation is cash (or other non-stock) earned for the year under a plan with pre-established goals, typically the annual bonus plan: revenue, EPS, EBITDA, safety, or a scorecard. Multi-year cash performance plans can also land here when they pay.
It is not the Bonus column. Item 402 splits discretionary or non-plan cash (Bonus) from amounts earned under an incentive plan (this column). Both are cash-like; only this column claims a formula.
Why companies use it
Annual cash incentives are the main lever for one-year operating goals. Committees set target, threshold, and maximum as a percent of salary, then certify results after year-end.
Putting the payout in this column, rather than Bonus, signals that the cash was earned under the plan the CD&A described.
Pros
- Connects a large cash check to stated metrics.
- Shareholders can compare target vs actual in the CD&A.
- Does not dilute shareholders the way stock does.
Cons
- Metrics can be adjusted, weighted, or capped in ways the SCT number does not show.
- A “plan” payout can still be largely in the committee’s discretion if modifiers are broad.
- On mix bars, combining this column with Bonus loses the discretionary vs formulaic split.
Examples
200% of target
A CEO with a $1 million salary and a 200% target bonus can show $4 million here if the plan pays maximum. That cash is in the SCT year it was earned, even if paid in January of the next calendar year.
Mix-bar grouping
CompensationBase’s mix chart labels the combined Bonus + non-equity columns as incentives. The profile still stores both SCT fields.
On CompensationBase
This SCT column is parsed separately from Bonus. On mix bars and compare views it is combined with bonus under incentives.
Related terms
- 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.
- Short-term incentive
A one-year cash incentive plan. Payouts usually appear in Bonus or Non-Equity Incentive Plan Compensation, not in equity columns.
- Compensation mix
The split of reported pay among salary, equity (stock and option awards), cash incentives, and other compensation, calculated from SCT amounts.