Base salary:
Base salary earned in the fiscal year.

Total cash compensation (TCC):
Sum of base salary and annual incentive.

Total direct compensation (TDC):
Sum of base salary, annual incentive, and long-term incentive.

Short-term incentive:
Annual bonus (cash).

Long-term incentives:
Include stock options, restricted stock, long-term incentive-plan compensation, and/or performance shares.

How the Survey Was Conducted

The 2006 CFO compensation survey is based on data from Mercer Human Resource Consulting's 2006 Finance, Accounting & Legal Compensation Survey. CFO data refers only to the top corporate CFO, and not to others within the same organization who have a CFO title.

This year's survey, which collected data on 120,774 employees at more than 2,300 responding organizations, included 575 companies that reported data on chief financial officers. The effective date of the survey data is March 1, 2006.

Sixty percent of businesses responding were public, 20 percent were private, and 20 percent were government, educational, or nonprofit organizations. Average revenues totaled $960.0 billion. Of the respondents, 45 percent are parent organizations, 22 percent are divisions, and 35 percent are subsidiary/group entities.

The list of the 20 top-paid CFOs was compiled separately by Mercer's Executive Compensation Research Unit, based on proxy data filed by 350 of the largest U.S. companies as of April 1. Total compensation is based on salary, bonus, options grants, long-term incentive payments, and the value of restricted stock at the date of grant.

The 2006 Finance, Accounting & Legal Compensation Survey supplies a full range of compensation data on salaried employees in the finance department. The price of an online copy is $675 for participants and $2,025 for nonparticipants. The price of a hard copy is $775 for participants and $2,125 for nonparticipants. Additional pricing is available for multiple copies. To obtain a copy, go to http://www.imercer.com or call (800) 333-3070.

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