Bed, Bath and Beyond 2015 Annual Report Download - page 29

PROPOSAL 3—APPROVAL, BY NON-BINDING VOTE, OF 2015 EXECUTIVE COMPENSATION
• Support the Company’s strong team orientation;
• Attract additional talented executives as required, and encourage high-potential team players to build a career at the
Company; and
• Provide financial rewards and incentives that are competitive with other organizations and fair to employees and
shareholders.
The Company believes that its compensation policies, plans and programs have no material adverse effect on the Company’s
enterprise risk.
The Company believes that a key factor in its success to date has been the stability of its executive team. The average tenure
of our NEOs is approximately 33 years, which has created a very cohesive executive team, led by our CEO Steven Temares,
which has deep knowledge of the Company as well as the depth and breadth of experience to navigate the ever-evolving and
dramatically changing retail landscape. The assembly and retention of this executive team and its team-based approach has
also contributed to the Company’s strong corporate culture to think long-term and do whatever it takes to satisfy a customer.
To that end, the Company’s policy is to seek, whenever possible, at all levels, to promote from within and to make
compensation program changes gradually in order to compensate executives in a manner designed to promote the long-term
success of the organization as well as to maintain a level of stability. Compensation heavily weighted toward equity awards
that vest over four or five years also supports such stability.
The Company’s compensation programs do not include annual cash bonuses and allocate the majority of each executive’s
compensation to long-term equity awards and performance-based compensation. The Compensation Committee firmly
believes that annual cash bonuses promote short-term thinking and are in direct contrast to the Bed Bath & Beyond culture
which is rooted in a commitment to customer service and a desire to achieve long-term success. The Committee believes that
paying a fair base salary and putting all other compensation in the form of long-term equity awards and performance-based
compensation creates alignment with the Company’s and shareholders’ goal of incenting management to continue to enhance
shareholder value over the long term.
The increased pace of change in the retail environment over the past several years has been fueled by advancing
technologies that are impacting the way consumers are able to make shopping decisions and purchase products and services.
At the same time, our Company has been driving change—across our organization—through significant investments in our
people as well as Information Technology, Digital and Mobile capabilities, Analytics, Pricing, Merchandising, Marketing, Store
Operations, Customer Service, Real Estate as well as our Supply Chain network.
The Compensation Committee recognizes the significant transformation occurring within the Company and the level of
fortitude and expertise required to create the right balance between achieving positive results in the near-term, and investing
for long-term success. We have great confidence in our executive team and their ability to further strengthen and position Bed
Bath & Beyond as a world-class omnichannel retailer.
Our Strategy
The retail environment continues to change dramatically as advancing technologies transform the way consumers shop for
merchandise both online and in-store. The evolution of omnichannel retailing presents a great opportunity to provide a more
seamless and personalized shopping experience for customers.
Over the past few years, Bed Bath & Beyond has driven change throughout our organization to capitalize on advancing
technologies and to strengthen our business as a world-class omnichannel retailer. We have made tremendous progress in
the transformation of our Company to better serve our customers in an ever-evolving digital world. At the same time, our
strategy remains rooted in our customer-centric culture and commitment to customer service, supported by significant
investments to strengthen our foundation for future growth:
• To do more for and with our customers wherever, whenever and however they wish to interact with us;
• To provide our customers a seamless experience whether they interact with us in a store, through one of our contact
centers, on a desktop or tablet, smartphone or through social media;
• To be viewed as the expert for the home, including the accompanying life stages that make a house a home, and to
become the destination for our customers’ needs and wants as they express their life interests and travel through their
life stages; all through the expanding and differentiated products, services and solutions we offer; and
• To enhance our ability to achieve these objectives through an ongoing commitment to world class information
technology, comprehensive analytics and targeted marketing and communications.
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