Big Lots 2008 Annual Report Download - page 36

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The Committee then shared its recommendations on the EMC members’ compensation, including the underlying
data and analysis, with the other outside directors for their consideration and approval. The Committee’s
recommendations were, with respect to the EMC members other than the CEO, consistent with the CEO’s
recommendations. At the March 2008 Board meeting, the outside directors discussed with the Committee the
form and amount of, and rationale for, the recommended compensation and, consistent with the Committee’s
recommendations, finalized the compensation awards for the EMC members.
Except where we discuss the specifics of a named executive officer’s fiscal 2008 compensation, the evaluation and
establishment of the named executive officers’ fiscal 2008 compensation was substantially similar. Based on their
review of each element of executive compensation separately, and in the aggregate, the Committee and the other
outside directors determined that the named executive officers’ compensation for fiscal 2008 was reasonable and
not excessive and was consistent with our executive compensation philosophy and objectives.
Salary for Fiscal 2008
The salaries paid to the named executive officers for fiscal 2008 are shown in the “Salary” column of the Summary
Compensation Table. At its annual review in March 2008, the Committee and the outside directors approved the
following fiscal 2008 salaries for the named executive officers: Mr. Fishman: $1,200,000; Mr. Cooper: $440,000;
Mr. Waite: $550,000; Mr. Martin: $520,000; and Mrs. Bachmann: $440,000. These annualized salaries became
effective on March 22, 2008.
Salary adjustments for the named executive officers were made at the discretion of the Committee and the
other outside directors and were generally based upon the factors discussed in this CD&A, with an emphasis on
comparative compensation data and corporate and individual performance. Specifically, the following items of
corporate and individual performance were most significant in increasing the salaries of the named executive
officers for fiscal 2008.
• Mr. Fishman:
(i) Fiscal 2007 earnings per common share-diluted was $1.47 – approximately 23% above our fiscal
2007 corporate operating plan and approximately 46% above our fiscal 2006 results;
(ii) Fiscal 2007 operating profit was $236.5 million – approximately 18% above our fiscal 2007
corporate operating plan and approximately 41% above our fiscal 2006 results;
(iii) Fiscal 2007 income from continuing operations was $151.2 million – approximately 17% above
our fiscal 2007 corporate operating plan and approximately 34% above our fiscal 2006 results;
(iv) Fiscal 2007 cash flow (defined as operating activities less investing activities) was $249 million –
approximately 25% above our fiscal 2007 corporate operating plan;
(v) Fiscal 2007 SG&A expenses were $1,603.9 million – approximately 7% below our fiscal 2006
results; and
(vi) Continued progress of our executive succession plan.
• Mr. Cooper:
(i) Fiscal 2007 SG&A expense performance;
(ii) Development of our annual corporate operating plan and our long-range strategic plan;
(iii) Executive leadership support for effective cash deployment and investor relations; and
(iv) Management’s interface with the Audit Committee.
• Mr. Waite:
(i) Effective management of compensation and employee healthcare coverage costs;
(ii) Oversight of important employee relations initiatives, including recruitment of new employees in
important functional areas;
(iii) Assistance with the development of the executive succession plan; and
(iv) Management’s interface with the Compensation Committee.