Big Lots 2011 Annual Report Download - page 55

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Performance Evaluation
Our CEO, the Committee and the outside directors do not rely solely on predetermined formulas when they
evaluate corporate performance or individual performance. Performance is generally evaluated against the
following objective and subjective factors, although the factors considered may vary for each executive and as
dictated by business conditions:
• long-term strategic goals;
• short-term business goals;
• profit and revenue goals;
• expense goals;
• operating margin improvement;
• revenue growth versus the industry;
• earnings-per-share growth;
• continued optimization of organizational effectiveness and productivity;
• leadership and the development of talent; and
• fostering teamwork and other corporate values.
Our CEO, the Committee and the outside directors may each consider different factors and may value the same
factors differently. In selecting individual and corporate performance factors for each EMC member and measuring
an executive’s performance against those factors, our CEO, the Committee and the other outside directors also
consider the performance of our competitors and general economic and market conditions. None of the factors are
assigned a specific weight. Instead, our CEO, the Committee and the other outside directors recognize that the
relative importance of these factors may change as a result of specific business challenges and changing economic
and marketplace conditions. So although the Committee and the other outside directors consider our CEO’s
recommendations, the Committee and the other outside directors may elect to not follow, and are not bound by, our
CEO’s recommendations on executive compensation.
Fiscal 2011 compensation for our named executive officers was determined in the discretion of the Committee and
the other outside directors and was generally based upon the factors discussed in this CD&A, including corporate
and individual performance and comparative compensation data. Specifically, the following items of corporate
and individual performance were most significant in awarding compensation to our named executive officers for
fiscal 2011.
• Mr. Fishman:
(1) Fiscal 2010 earnings per common share from continuing operations-diluted were $2.83 –
approximately 11.0% above our fiscal 2010 corporate operating plan and approximately 16.0%
above our fiscal 2009 results;
(2) Fiscal 2010 operating profit was $357.3 million – approximately 2.8% above our fiscal 2010
corporate operating plan and approximately 9.9% above our fiscal 2009 results;
(3) Fiscal 2010 income from continuing operations was $222.5 million – approximately 3.9% above
our fiscal 2010 corporate operating plan and approximately 10.5% above our fiscal 2009 results;
(4) Fiscal 2010 SG&A expenses were $1,655.1 million – approximately $9.2 million below our fiscal
2010 corporate operating plan; and
(5) Continued progress of our executive succession plan.
• Mr. Cooper:
(1) Fiscal 2010 SG&A expense performance;
(2) Development and implementation of our annual corporate operating plan;