92 NOVEMBER / DECEMBER 2022 45> From one longstanding institution to the other, congratulations to the IBA on 125 years! the individual NEOs whose compensation amounts are included in the average for each year. Actual Compensation Paid Registrants will start with compensation as reported in the Summary Compensation Table and adjust for pension benefits and equity awards. Footnote disclosure will be required for amounts adjusted, detailed below. From the total compensation in the Summary Compensation Table, a registrant would deduct the aggregate change in the actuarial present value of all defined benefit and actuarial pension plans and add back the actuarially determined service cost rendered during the applicable year (service cost) and the entire cost of benefits granted in a plan amendment during the covered fiscal year that are attributed by the benefit formula to services rendered in periods before the amendment (prior service cost). The service cost and prior service cost should be calculated in accordance with U.S. GAAP. Compensation actually paid also would include above-market earnings on deferred compensation that are not tax-qualified. For equity awards, the following items would be added (or subtracted, as applicable) to the Summary Compensation Table amount: ƒ The year-end fair value of any equity awards granted in the covered fiscal year that are outstanding and unvested as of the end of the covered fiscal year. ƒ The amount of change as of the end of the covered fiscal year (from the end of the prior fiscal year) in fair value of any awards granted in prior years that are outstanding and unvested as of the end of the covered fiscal year. ƒ For awards that are granted and vest in the same covered fiscal year, the fair value as of the vesting date. ƒ For awards granted in prior years that vest in the covered fiscal year, the amount equal to the change as of the vesting date (from the end of the prior fiscal year) in fair value. ƒ For awards granted in prior years that are determined to fail to meet the applicable vesting conditions during the covered fiscal year, a deduction for the amount equal to the fair value at the end of the prior fiscal year. ƒ The dollar value of any dividends or other earnings paid on stock or option awards in the covered fiscal year prior to the vesting date that are not otherwise reflected in the fair value of such awards or included in any other component of total compensation for the covered fiscal year. Most Important Performance Measures List A registrant also will be required to provide a list of at least three and up to seven of their most important performance measures used to link compensation actually paid to performance for the most recently completed fiscal year. The final rule clarifies the list is not ranked and registrants are not required to provide the methodologies used. Regis-
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