Realized pay is a supplemental approach to executive compensation disclosure mandated by the SEC (the Summary Compensation Table) that provides a clearer view of how executive compensation compares to the performance that generated it. Compared to realizable pay, which provides a snapshot of pay outstanding, realized pay evaluates the pay actually received by an executive during the fiscal year, including salary, bonus and non-equity incentives paid, earned performance shares, vested restricted stock, and the gain from stock option exercises. The Center believes that realized pay is the most effective lens for comparing pay with performance and that disclosure of realized pay is aided when the realized amounts are put into context by discussing the performance over the period the compensation was outstanding, especially for long-term awards such as stock options. Realized pay is not as easily calculated for peer companies, and for that reason it is not as likely to be a disclosure that is readily used for relative comparisons. However, it is the clearest comparison of absolute pay versus actual performance and thus is a useful tool for compensation committees and investors in evaluating whether pay programs generated an appropriate level of compensation given the company's and the executive's performance on an element-by-element basis.