Addition of PEO and Nonpeo Compensation Adjustments

Rule function

This rule applies to proxy disclosures. This rule identifies where filers have reported an adjustment compensation amount that does not tie to the difference between the total compensation amount (PeoTotalCompAmt, NonPeoNeoAvgTotalCompAmt) and the actual compensation amount paid (PeoActuallyPaidCompAmt, NonPeoNeoAvgCompActuallyPaidAmt). The adjustment amount is reported using the element AdjToCompAmt. This value is usually comprised of a number of components. These components are reported using dimension members on the axis AdjToCompAxis defined by the filer. The rule adds the values of these dimension members and compares the adjustment amount to the difference in the total compensation amount and the actual compensation amount paid. The rule adds those members at the highest level of aggregation on the axis. For this reason filers must build a hierarchy of members if adjustments are further disaggregated in the proxy disclosure.

The rule has a built in tolerance that is based on the decimals associated with the facts reported.

Problem solved by the rule

The rule identifies where the filer has entered incorrect amounts for the adjusted compensation values. This occurs when the filer uses an incorrect sign on the values reported. The rule also identifies where the filer has not defined a correct hierarchy of members to represent the breakdown of the adjustments. These errors are not apparent when looking at the XBRL filings and these rules help filers to identify the problem.

Example rule message

Example rule message 1

The value of the difference between PeoActuallyPaidCompAmt and PeoTotalCompAmt has a value of 17,691,261, which is not equal to the aggregated value of the concept AdjToCompAmt using the dimensionally qualified components on the axis AdjToCompAxis which has an aggregate value of 45,691,623 based on the data in the filing.

The values of the calculation components are as follows:
YearEndFairValueOfAwardsGrantedInCurrentFiscalYearMember –> 24,274,810 –> ecd:AdjToCompAxis=mcd:YearEndFairValueOfAwardsGrantedInCurrentFiscalYearMember, ecd:ExecutiveCategoryAxis=ecd:PeoMember
ChangeInFairValueOfOutstandingAndUnvestedAwardsGrantedInPriorFiscalYearsMember –> 7,531,726 –> ecd:AdjToCompAxis=mcd:ChangeInFairValueOfOutstandingAndUnvestedAwardsGrantedInPriorFiscalYearsMember, ecd:ExecutiveCategoryAxis=ecd:PeoMember
AdjustmentsForEquityAwardsFailedToMeetPerformanceConditionsMember –> -115,094 –> ecd:AdjToCompAxis=mcd:AdjustmentsForEquityAwardsFailedToMeetPerformanceConditionsMember, ecd:ExecutiveCategoryAxis=ecd:PeoMember
EquityAwardsValueInCompensationTableForApplicableYearMember –> 14,000,181 –> ecd:ExecutiveCategoryAxis=ecd:PeoMember, ecd:AdjToCompAxis=mcd:EquityAwardsValueInCompensationTableForApplicableYearMember
ChangeInFairValueAsOfVestingDateOfCurrentYearAwardsVestedDuringCurrentYearMember –> 0 –> ecd:AdjToCompAxis=mcd:ChangeInFairValueAsOfVestingDateOfCurrentYearAwardsVestedDuringCurrentYearMember, ecd:ExecutiveCategoryAxis=ecd:PeoMember

The value of the difference between PeoActuallyPaidCompAmt and PeoTotalCompAmt should equal to the dimensional aggregation of the AdjToCompAxis axis using the concept AdjToCompAmt. Check that the signs used on this element are based on the element AdjToCompAmt. This means that decreases in compensation should be entered as a negative amount irrespective of the member used.
This rule aggregates the value of member components located on the axis at the highest level of aggregation to avoid double counting in the event that the company uses a hierarchy of members.

The properties of this fact are:
Period: 2021-01-01 to 2021-12-31
Dimensions:
Unit: USD

Rule Element ID: 10132
Rule version: 23.0.0RC1

Example rule message 2

The value of the difference between NonPeoNeoAvgCompActuallyPaidAmt and NonPeoNeoAvgTotalCompAmt has a value of -448,723, which is not equal to the aggregated value of the concept AdjToCompAmt using the dimensionally qualified components on the axis AdjToCompAxis which has an aggregate value of 6,811,645 based on the data in the filing.

The values of the calculation components are as follows:
EquityAwardsValueInCompensationTableForApplicableYearMember –> 3,630,184 –> ecd:AdjToCompAxis=mcd:EquityAwardsValueInCompensationTableForApplicableYearMember, ecd:ExecutiveCategoryAxis=ecd:NonPeoNeoMember
ChangeInFairValueOfOutstandingAndUnvestedAwardsGrantedInPriorFiscalYearsMember –> -2,031,739 –> ecd:AdjToCompAxis=mcd:ChangeInFairValueOfOutstandingAndUnvestedAwardsGrantedInPriorFiscalYearsMember, ecd:ExecutiveCategoryAxis=ecd:NonPeoNeoMember
ChangeInFairValueAsOfVestingDateOfCurrentYearAwardsVestedDuringCurrentYearMember –> 199,881 –> ecd:AdjToCompAxis=mcd:ChangeInFairValueAsOfVestingDateOfCurrentYearAwardsVestedDuringCurrentYearMember, ecd:ExecutiveCategoryAxis=ecd:NonPeoNeoMember
AdjustmentsForEquityAwardsFailedToMeetPerformanceConditionsMember –> 1,194,465 –> ecd:AdjToCompAxis=mcd:AdjustmentsForEquityAwardsFailedToMeetPerformanceConditionsMember, ecd:ExecutiveCategoryAxis=ecd:NonPeoNeoMember
YearEndFairValueOfAwardsGrantedInCurrentFiscalYearMember –> 3,818,854 –> ecd:ExecutiveCategoryAxis=ecd:NonPeoNeoMember, ecd:AdjToCompAxis=mcd:YearEndFairValueOfAwardsGrantedInCurrentFiscalYearMember

The value of the difference between NonPeoNeoAvgCompActuallyPaidAmt and NonPeoNeoAvgTotalCompAmt should equal to the dimensional aggregation of the AdjToCompAxis axis using the concept AdjToCompAmt. Check that the signs used on this element are based on the element AdjToCompAmt. This means that decreases in compensation should be entered as a negative amount irrespective of the member used.
This rule aggregates the value of member components located on the axis at the highest level of aggregation to avoid double counting in the event that the company uses a hierarchy of members.

The properties of this fact are:
Period: 2020-01-01 to 2020-12-31
Dimensions:
Unit: USD

Rule Element ID: 10133
Rule version: 23.0.0RC1

For Developers

The Global Rule Logic document contains general guidelines for implementation of rules.

The rule message template contains text and parametric reference to arguments of the rule operation, using the syntax ${parameter} to indicate that insertion of a parameter’s value is to occur.

Message template

General message template 1

The value of the difference between PeoActuallyPaidCompAmt and PeoTotalCompAmt has a value of {$DiffValue}, which is not equal to the aggregated value of the concept AdjToCompAmt using the dimensionally qualified components on the axis AdjToCompAxis which has an aggregate value of {$member_sum} based on the data in the filing.

The values of the calculation components are as follows:
{$member_string}

The value of the difference between PeoTotalCompAmt and PeoActuallyPaidCompAmt should equal to the dimensional aggregation of the AdjToCompAxis axis using the concept AdjToCompAmt. Check that the signs used on this element are based on the element AdjToCompAmt. This means that decreases in compensation should be entered as a negative amount irrespective of the member used.
This rule aggregates the value of member components located on the axis at the highest level of aggregation to avoid double counting in the event that the company uses a hierarchy of members.

The properties of this fact are:
Period: {$TotalCompAmount.period}
Dimensions: {$TotalCompAmount.dimensions.join(', ','=')}
Unit: {$TotalCompAmount.unit}

Rule Element ID: {$rule_id}
Rule version: {$ruleVersion}

General message template 2

The value of the difference between NonPeoNeoAvgCompActuallyPaidAmt and NonPeoNeoAvgTotalCompAmt has a value of {$DiffValue}, which is not equal to the aggregated value of the concept AdjToCompAmt using the dimensionally qualified components on the axis AdjToCompAxis which has an aggregate value of {$member_sum} based on the data in the filing.

The values of the calculation components are as follows:
{$member_string}

The value of the difference between NonPeoNeoAvgCompActuallyPaidAmt and NonPeoNeoAvgTotalCompAmt should equal to the dimensional aggregation of the AdjToCompAxis axis using the concept AdjToCompAmt. Check that the signs used on this element are based on the element AdjToCompAmt. This means that decreases in compensation should be entered as a negative amount irrespective of the member used.
This rule aggregates the value of member components located on the axis at the highest level of aggregation to avoid double counting in the event that the company uses a hierarchy of members.

The properties of this fact are:
Period: {$TotalCompAmount.period}
Dimensions: {$TotalCompAmount.dimensions.join(', ','=')}
Unit: {$TotalCompAmount.unit}

Rule Element ID: {$rule_id}
Rule version: {$ruleVersion}

Test Case Index

The rule element id is used to identify unique elements or combinations of elements tested in the rule.