Best Buy 2010 Annual Report Download - page 43

Deferred Compensation Plan. We sponsor an
Other Compensation Matters
unfunded, unsecured Deferred Compensation Plan. We
The programs and policies described below are believe the plan provides a tax-deferred retirement
generally applicable to all our named executive officers, savings vehicle that plays an important role in attracting
unless otherwise noted. and retaining executive talent. Additional information
Benefits and Perquisites. Our named executive officers about our Deferred Compensation Plan is included in
are generally offered the same employee benefits and Non-Qualified Deferred Compensation Plan on
perquisites offered to all U.S.-based employees, as page 56.
summarized in the table below: Employee Stock Purchase Plan. Our ESPP allows
All employees, including our named executive officers, to
Full-Time Named purchase Best Buy common stock at a discount. The
U.S.-Based Executive
Benefit or Perquisite Employees Officers stock purchase price is 85% of the lesser of the closing
Deferred Compensation Plan ឡ(1) ឡ(1) price on the NYSE at the beginning or at the end of a
Employee Discount ឡឡ
semi-annual purchase period. There is a maximum
— Expanded Employee Discount(2) ឡpurchase value of $25,000 per calendar year for all
Employee Stock Purchase Plan ឡឡ
plan participants.
Health Insurance ឡឡ
Retirement Savings Plan. Our Retirement Savings Plan
— Executive Physical Exam ឡ
is intended to meet the requirements of Section 401(k)
Life Insurance ឡឡ
Long-Term Disability ឡឡ
of the Internal Revenue Code of 1986 (the ‘‘Code’’). All
— Executive Long-Term Disability ឡof our named executive officers are eligible to
Paid Time Off ឡឡ
participate in the plan. The plan provides a safe harbor
Retirement Savings Plan ឡឡ
that allows U.S.-based employees to contribute pre-tax
Severance Plan ឡឡ
income and immediately vest in company matching
Short-Term Disability ឡឡ
contributions. The plan is expected to provide an
Stock Ownership Target Planning ឡimproved opportunity for such employees to achieve
Tax Planning and Preparation ឡ
retirement income security. However, the plan is not
(1) Only highly compensated employees and directors are expected to provide sufficient income replacement
eligible to participate in our Deferred Compensation Plan. relative to our named executive officers’ anticipated
(2) Our named executive officers are eligible to receive the retirement needs. The potential retirement income gap
same employee discount at U.S. Best Buy stores as all for our U.S.-based named executive officers may be
U.S.-based employees. However, they are also eligible to
receive discounts at stores operated by certain of our filled by other reward elements, including long-term
subsidiaries that are not generally available to all incentives, or by the deferral of a portion of base salary
employees.
or short-term incentive awards under our Deferred
We provide the executive benefits and perquisites Compensation Plan. Under the Retirement Savings Plan,
denoted above to compete for executive talent and to we match employee contributions, including those made
promote the health, well-being and financial security of by our U.S.-based named executive officers, at rates
our named executive officers. A description of executive approved by the Compensation Committee. For fiscal
benefits and perquisites, and the costs associated with 2010, we matched 100% of the first 3% and 50% of
providing them for the named executive officers, are the next 2% of eligible pre-tax earnings (up to IRS limits)
reflected in the ‘‘All Other Compensation’’ column of contributed by plan participants.
the Summary Compensation Table on page 49.
Although we intend to continue the Retirement Savings
Plan, as well as to make matching contributions, the
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