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Viacom CEO Dauman's pay falls 22 pct. in 2012

Published: January 25, 2013 Comment on this article

The Associated Press formula of total pay considers salary, bonuses, perks, stock and options awarded to the executive during the year, but not changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.

The value that a company assigned to an executive's stock and option awards for 2012 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value.

However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.

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