Bed, Bath and Beyond 2015 Annual Report Download - page 13

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PROXY STATEMENT SUMMARY
• Continued development of our new Point-of-Sale system, including both hardware and software elements. The new
system—to be piloted in fiscal 2016—will provide a more efficient customer check out process by automating many
manual processes, as well as greatly enhancing our promotional capabilities.
• Progressed development of our Liberty View project in Brooklyn, a unique shopping venue which will house four of our
concepts and provide a more experiential shopping environment.
• Opened a new Customer Contact Center in Layton, Utah to enhance our 24/7 customer support.
• Expanded our supply chain network, including a new distribution facility in Las Vegas, Nevada, to provide more flexible
fulfillment options and support anticipated growth across all of our channels.
• Upgraded our proprietary internal Web-based platform, The Beyond Store, and integrated it with our Bed Bath & Beyond
and buybuy BABY selling websites and mobile channels, to enable our associates to better service our customers in
creating web orders, comparing products, and reading product reviews.
Select financial highlights:
• Net sales of $12.1 billion increased approximately 1.9% or approximately 2.3% on a constant currency basis.
• Comparable sales increased approximately 1%, or approximately 1.4% on a constant currency basis.
• Comparable sales consummated through customer facing online websites and mobile applications increased in excess
of 25%.
• Diluted EPS of $5.10, including $0.06 of net benefits from certain non-recurring items, including a favorable state audit
settlement.
• Generated $1.0 billion in net cash from operations and returned $1.1 billion to shareholders through share repurchase.
• Subsequent to fiscal 2015, announced Board authorization of a quarterly dividend program, which will commence in
fiscal 2016.
For more information regarding our fiscal 2015 financial performance, see our Annual Report on Form 10-K for fiscal 2015 filed
with the SEC on April 26, 2016.
Shareholder Outreach—We Listened, Learned & Responded
We recognize the value of listening and taking into account the views of our shareholders. Building relationships with our
shareholders is an integral part of our corporate governance practices. We conduct shareholder outreach throughout the year
to ensure that management and the Board understand and consider the issues of importance to our shareholders and are able
to consider them appropriately. On a regular basis, we also meet with shareholders and potential investors to review our
operating and financial results.
After last year’s Annual Meeting, at which the advisory vote on executive compensation was below our expectations, we
continued our shareholder outreach program. We contacted our top twenty-five shareholders representing approximately 68%
of our outstanding shares to solicit feedback and explain our strategy on corporate governance and executive compensation.
Members of senior management and the Board met or spoke with shareholders representing approximately 50% of our
shares.
Investor Relations is the primary contact for shareholder interaction with the Company. Investors can reach us at (908) 613-
5820 or via email at [email protected].
Shareholder Feedback and Compensation Philosophy Guided Changes to Fiscal 2016
Compensation Program
Subsequent to our shareholder engagement following the 2015 Annual Meeting and after consideration of the feedback
received from our shareholders, the Compensation Committee approved the following changes to the fiscal 2016 executive
compensation program:
• No increase in base salary of the Company’s CEO (third consecutive year of no increase in CEO base pay) and Co-
Chairmen.
• Reduced CEO target compensation from $19.6 million to $16.9 million, or by approximately 14%.
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