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Components of pay, which for most executives and key employees includes base salary, annual incentives, and long-term incentives (LTI). Base salary is considered fixed compensation, and the other two are considered variable compensation. Together these are sometimes called “total direct compensation” (TDC). The permutations of these vary by company (depending on its compensation philosophy) and by position in the company. Nonqualified deferred compensation can be part of all three components in the pay mix, depending on whether or how the company’s plans are designed to allow deferrals from each type of compensation.