Best Buy 2009 Annual Report Download - page 38

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Comparable Store Sales Factor will be determined based to recognize superior performance. In fiscal 2009, we
on the following table: granted a special restricted stock award of 20,000
shares to Mr. Muehlbauer to recognize his strong
Comparable Store Sales
Growth Rate Factor performance as interim Enterprise Chief Financial
Officer and to reinforce his importance to us in his new
8% or above 1.25
role as Executive Vice President — Finance and Chief
6% 1.00
Financial Officer. The Compensation Committee
4.5% 0.80
considered the impact of the restricted stock award’s
3% or below 0.60
value on Mr. Muehlbauer’s total compensation, relative
The Award Percentage of Target multiplied by the to comparable positions within our peer group of
Comparable Store Sales Factor will result in a final companies and the Fortune 100, and deemed that
award equal to 0% to 250% of the target award. In Mr. Muehlbauer’s total compensation was reasonable.
order for any portion of a performance award to be The restricted shares awarded to Mr. Muehlbauer vested
earned, we must achieve a minimum of 7% compound 25% on the grant date, and will vest an additional 25%
annual revenue growth (coupled with a minimum 17% on each of the next three anniversaries of the grant
compound annual profit growth) or 7% compound date, provided he has been continually employed with
annual profit growth (coupled with a minimum 14% us through those dates. Additional information regarding
compound annual revenue growth) during one of the the special restricted stock award granted to
performance periods. Mr. Muehlbauer in fiscal 2009 is included in Grants of
The following table shows the target award in shares for Plan-Based Awards on page 45.
each of our named executive officers, excluding
Voluntary Separation Benefits. Mr. Morrish was one of
Mr. Anderson, who was not eligible for this award:
the approximately 500 employees who accepted the
Performance Shares separation offer we made pursuant to our Voluntary
Target Award Maximum Award Separation Program. Mr. Morrish’s age (51) and years
in Shares in Shares
of service (10) qualified him for an additional 25% of
Mr. Muehlbauer 100,000 250,000
base salary as part of his separation offer. By accepting
Mr. Dunn 190,000 475,000
the separation offer, Mr. Morrish received a one-time
Mr. Willett 190,000 475,000
lump sum payment equal to 45 months of salary, or
Ms. Ballard 82,750 206,875
$1,796,063, paid in cash. Mr. Morrish may also opt to
Mr. Morrish 27,000 67,500
receive 18 months of COBRA continuation, 18 months
The Compensation Committee approved target and of life insurance premiums and $5,000 for tax planning
maximum award sizes that would provide significant services relating to his termination.
incremental reward potential beyond the value already
Anticipated Fiscal 2010 Named Executive Officer
available under existing incentive schemes for high
Compensation Structure Changes
levels of performance. Additional information regarding
the special long-term incentive awards granted to For fiscal 2010, HR recommended and the
Messrs. Dunn, Muehlbauer, Willett and Morrish and Compensation Committee approved, certain changes to
Ms. Ballard in fiscal 2009 is included in Grants of short- and long-term incentive awards that will impact
Plan-Based Awards on page 45. Due to Mr. Morrish’s our named executive officers as well as certain other
voluntary separation from the company, his enterprise employees eligible for short- and long-term incentive
leadership incentive award was forfeited. awards.
Individual Recognition Restricted Stock Award. From Short-Term Incentive. We are changing the short-term
time to time, we grant individual restricted stock awards incentive plan structure to create an incentive plan that
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