Dollar General 2008 Annual Report Download - page 139

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overall, as a threshold matter each named executive officer was eligible to receive a 2008
Teamshare payout to the extent we achieved the relevant EBITDA performance level.
The Committee also subjectively reviewed Mr. Dreiling’ s individual performance for
2008 in a manner similar to Mr. Dreiling’ s evaluations of the other named executive officers
discussed above. The Committee determined that he had performed satisfactorily and as a
threshold matter, he was therefore also eligible to receive a 2008 Teamshare payout to the extent
we achieved the relevant EBITDA performance level.
In March 2009, the Compensation Committee approved the EBITDA performance level
at 217.63% of target. Accordingly, Teamshare payouts in the amount reflected in the “Non-
Equity Incentive Plan Compensation” column of the Summary Compensation Table will be
made to each named executive officer (other than Mr. Buley and Ms. Lowe who are no longer
employed by Dollar General) at the following percentages of base salary: Mr. Dreiling,
217.63%; Mr. Bere, 177.73%; Mr. Tehle, 141.46%; Ms. Guion, 141.46%; and Ms. Lanigan,
141.46%.
(c) 2009 Teamshare Structure . As it did in 2008, the Compensation Committee selected
as the 2009 Teamshare financial performance measure a measure based upon earnings before
interest, taxes, depreciation and amortization (“EBITDA”), with adjustments similar to those
described above pertaining to the 2008 Teamshare structure. The Committee established the
target financial performance level for purposes of the 2009 Teamshare program at a level equal
to our annual financial objective, which was consistent with past practice. The Committee
considers the 2009 Teamshare program target financial performance level to be challenging and
generally consistent with the level of difficulty of achievement associated with the our
performance-based awards for prior years (see “2008 Teamshare Structure” above for a
discussion of the level of achievement in recent years of the financial performance targets).
As in 2008 and for the same reasons identified under “2008 Teamshare Structure” above,
the Committee established the threshold financial performance level, below which no bonus may
be paid under the 2009 Teamshare program, at 95% of the target financial performance level,
and the Committee did not establish a maximum level of EBITDA performance under the 2009
Teamshare program.
The bonus payable to each named executive officer if Dollar General reaches the 2009
target financial performance level is equal to the applicable percentage of each officer’ s salary as
set forth in the chart below. Such payout levels, which are consistent with prior years’ payout
levels, were selected because they are within the median range of the Hewitt data for the market
comparator group.