Dollar General 2011 Annual Report Download - page 42

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such persons, and to replace benefit opportunities lost due to regulatory limits. We also provide named
executive officers with benefits and perquisites as additional forms of compensation that we believe to
be consistent and competitive with benefits and perquisites provided to executives with similar positions
in our market comparator group and in our industry.
The named executive officers have the opportunity to participate in the Compensation Deferral
Plan (the ‘‘CDP’’) and, other than Mr. Vasos, the defined contribution Supplemental Executive
Retirement Plan (the ‘‘SERP’’, and together with the CDP, the ‘‘CDP/SERP Plan’’). SERP participation
is not available to persons to whom employment offers are made after May 28, 2008, including
Mr. Vasos.
We provide each named executive officer a life insurance benefit equal to 2.5 times his or her
base salary up to a maximum of $3 million. We pay the premiums and gross up each named executive
officer’s income to pay the tax costs associated with this benefit. We also provide each named executive
officer a disability insurance benefit that provides income replacement of 60% of base salary up to a
maximum monthly benefit of $20,000. We pay the cost of this benefit and gross up such executive’s
income to pay the tax costs associated with the premiums for this benefit to the extent necessary to
provide a comparable cost for this benefit to the named executive officer as the cost applicable to all
salaried employees.
We also provide a relocation assistance program to named executive officers under a policy
applicable to officer-level employees, which policy is similar to that offered to certain other employees.
In 2011, we did not incur any relocation expenses for any named executive officer in accordance with
this policy. The significant differences between the relocation assistance available to officers from the
relocation assistance available to non-officers are as follows:
• We provide a pre-move allowance of 5% of the officer’s annual base salary capped at
$10,000 ($5,000 cap for other employees).
• We provide home sale assistance by offering to purchase the officer’s prior home at an
independently determined appraised value if it is not sold to an outside buyer.
• We reimburse officers for all reasonable and customary home purchase closing costs (other
employees are capped at 2% of the purchase price with a maximum of $2,500) except for
loan origination fees which are limited to 1%.
• We provide 60 days of temporary living expenses (30 days for all other employees), excluding
the cost of food.
We provide through a third party a personal financial and advisory service benefit to the
named executive officers, including financial planning, estate planning and tax preparation services, in
an annual amount of up to $20,000 per person (plus an individual tax gross-up and payment of the
advisor’s related travel expenses). The program reduces the amount of time and attention that
executives must spend on these matters, furthering their ability to focus on their responsibilities to us,
and maximizes the executive’s net financial reward of compensation received from us.
Mr. Dreiling is entitled to certain additional perquisites as a result of the terms of his
employment agreement with us, including:
• Personal use of our plane for 80 hours per year or a greater number of hours specified by
the Committee.
• Payment of monthly membership fees and costs related to his membership in professional
clubs selected by him, grossed-up for any taxes (to date, Mr. Dreiling has not availed himself
of this right).
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