Mulliken population analysis
The Mulliken charge scheme is based on the Linear Combination of Atomic Orbitals (LCAO), so, it is based on the system wave function and was described in a series of papers by R. S. Mulliken1,2,3,4.
The idea is that the normalized Molecular Orbital (MO), $\phi_i$, of a diatomic molecule is written as a linear combination of normalized Atomic Orbitals (AO), $\chi_j$ and $\chi_k$:
$$\phi_i = c_{ij} \chi_j + c_{ik} \chi_k$$
Assuming that the MO is occupied by $N$ electrons, these $N$ electrons can be distributes as:
$$N {\phi_i}^2 = N {c_{ij}}^2 {\chi_j}^2 + N {c_{ik}}^2 {\chi_k}^2 + 2 N c_{ik} \chi_i \chi_j$$
Integrating over all electronic coordinates and as the MO and AO are normalized::
$$N = N {c_{ij}}^2 + N {c_{ik}}^2 + 2 N c_{ij} c_{ik} S_{jk}$$
$$1 = {c_{ij}}^2 + {c_{ik}}^2 + 2 c_{ij} c_{ik} S_{jk}$$
where $S_{jk}$ is the overlap integral of the two Atomic Orbitals.
According to Mulliken interpretation, the subpopulations $N {c_{ij}}^2$ and $N {c_{ik}}^2$ are called the net atomic populations on atoms $j$ and $k$ and $2 N c_{ij} c_{ik} S_{jk}$ is called the overlap population.
A convenient way to re-write the previous equation is in matrix form:
$${P_i} = \left( {\begin{array}{*{20}{c}}
{c_{ij}^2}&{2{c_{ij}}c{}_{ik}{S_{jk}}}\\
{2{c_{ij}}c{}_{ik}{S_{jk}}}&{c_{ik}^2}
\end{array}} \right)$$
To take into account the populations from all the electrons in all the molecular orbitals, the net population matrix can be defined as
$${\rm{Net Population}} = \sum\limits_{i = occupied} {{P_i}}. $$
As pros, we have that these populations are easily calculated (almost any software can calculate them). As cons, they are heavily dependent on system wave functions and then, on the chosen basis sets (not random!).
References:
[1] Mulliken, R.S. Electronic Population Analysis on LCAO-MO. Molecular Wave Functions. I, J. Chem. Phys. (1955), 23, 1833-1840.
[2] Mulliken, R.S. Electronic Population Analysis on LCAO-MO. Molecular Wave Functions. II. Overlap Populations, Bond Orders, and Covalent Bond Energies, J. Chem. Phys. (1955), 23, 1841-1846.
[3] Mulliken, R.S. Electronic Population Analysis on LCAO-MO. Molecular Wave Functions. III. Effects of Hybridization on Overlap and Gross AO Populations, J. Chem. Phys. (1955), 23, 2338-2342.
[4] Mulliken, R.S. Electronic Population Analysis on LCAO-MO. Molecular Wave Functions. IV. Bonding and Antibonding in LCAO and Valence-Bond Theories, J. Chem. Phys. (1955), 23, 2343-2346.