The information compiled was sent to the companies to check the
accuracy. Most, but not all, companies responded to the inquiries.
Errors were corrected and other concerns were discussed with company
representatives.

We asked Equilar, an executive compensation research firm in Redwood Shores, Calif., to compile and analyze pay data.

In Equilar's "Total Compensation" analysis, the 100 highest-paid
executives are listed in descending order by total pay. That includes
salary, bonuses, nonequity incentive plan (NEIP) payouts, option
awards, stock awards, annual changes in pension plan balances, earnings
on nonqualified deferred compensation and other compensation.

Amounts listed in the bonus column typically include discretionary
cash awards that are not tied to performance, like signing bonuses, as
well as performance-based awards. Payouts from both annual and
multiyear incentive plans are included in this column.

Values listed in the option awards column represent
the fair value of new service-based and performance-based option awards
on the grant date. When grant-date values were not provided for option
awards, Equilar valued them using the widely accepted Black-Scholes
methodology. Values listed in the stock awards column also represent
the value of new service-based and performance-based stock awards on
the date they are granted.

Equilar's analysis counts equity awards in the fiscal year they were
granted, regardless of when an executive can access them. In some
cases, the ultimate value will depend on future performance or other
conditions.

There is no guarantee that executives will actually receive the
estimated value of their equity awards. They may realize more or less
in compensation depending on the price of the shares when they are
sold. In some cases, especially in the financial sector, companies
grant equity awards at the beginning of a fiscal year based on
performance in the prior fiscal year. As such, they are not necessarily
indicative of corporate performance in the year they were granted.

Values listed in the pension column represent the annual growth in
an executive's pension plan balances and earnings on nonqualified
deferred compensation. Equilar's analysis does not take into account
negative values, when pension balances decline from one year to the
next. Other compensation typically includes benefits and perquisites
such as the personal use of corporate aircraft, financial planning
assistance and insurance premiums.

Finally, in Equilar's "Total Cash" analysis, the 100 highest-paid
executives are listed in descending order by total cash compensation.
Cash compensation includes salary, bonuses and NEIP payouts. The
definitions for these values are the same as described above.

Local business editor Dan Beyers
and online business editor Andrea Caumont supervised the compensation
survey. Washington Business editor Terri Rupar oversaw the story and
graphics package, and Business section administrator Sarah Halzack managed data queries. Database managers Ed Holzinger and Jacqueline Dupree provided technical assistance.