Compensatory free agents are determined by a formula based on salary, playing time and postseason honors. The formula was developed by the NFL Management Council. Not every free agent lost or signed by a club is covered by this formula. No club may receive more than four compensatory picks in any one year. If a club qualifies for more than four compensatory picks after offsetting each CFA lost by each CFA gained of an equal or higher value, the four highest remaining selections will be awarded to the club.