Dollar General 2008 Annual Report Download - page 138
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136
Payments for financial performance below or above the target level are prorated on a
graduated scale commensurate with performance levels in accordance with the following
schedule.
% of Target Performance Level
% of Bonus Target
95%
50%
96%
60%
97%
70%
98%
80%
99%
90%
100%
100%
101%
110%
102%
120%
103%
130%
104%
140%
105%
150%
106%
160%
107%
170%
108%
180%
109%
190%
110%(1)
200%(1)
(1) For every 1% EBITDA increase over 110%, each named executive officer was eligible to
receive an additional 7.1491% of his or her bonus target. Individual awards are capped at $2.5
million per the terms of the plan under which our Teamshare program operates.
This pro ration schedule, through 110% of the target EBITDA performance level (the
prior maximum EBITDA performance level), is consistent with the pro ration schedule in prior
years. The Committee determined that the pro ration schedule for EBITDA performance above
110% of target should approximate a sharing between Dollar General and the Teamshare
participants of 20% of the EBITDA dollars earned above that level. When calculated against the
total incentive dollars that would be paid at 110% of the target EBITDA performance level, the
incremental incentive payout equated to an additional 7.1491% of each named executive
officer’ s bonus target for each additional 1% of EBITDA earned above 110% of the target level.
(b) 2008 Teamshare Results. Following fiscal 2008, Mr. Dreiling assessed each named
executive officer in the context of that officer’ s job responsibilities and made a subjective
determination as to whether that officer’ s performance for fiscal 2008 was satisfactory or
unsatisfactory on an overall basis. A determination of unsatisfactory performance would have
precluded that named executive officer from receiving a Teamshare payout for 2008
performance (unless otherwise contractually provided) regardless of whether we achieved our
overall, objective EBITDA performance target for fiscal 2008. A threshold determination of
satisfactory performance did not by itself result in any variation in the named executive officer’ s
incentive compensation. Rather, satisfactory performance merely created the possibility of a
payout under the Teamshare program. Once a named executive officer’ s eligibility was
established, the Teamshare payout was determined based upon our objective EBITDA
performance. Because Mr. Dreiling determined that each such person performed satisfactorily