Dollar General 2013 Annual Report Download - page 35

EXECUTIVE COMPENSATION
We refer to the persons listed in the Summary Compensation Table below as our ‘‘named
executive officers.’’ References to the ‘‘merger’’ or the ‘‘2007 merger’’ mean our merger that occurred
on July 6, 2007.
Compensation Discussion and Analysis
Executive Overview
The overarching goal of our executive compensation program is to serve the long-term interests
of our shareholders. A competitive executive compensation package is critical for us to attract, retain
and motivate persons who we believe have the ability and desire to deliver superior shareholder
returns. We strive to balance the short-term and long-term components of our executive compensation
program to incent achievement of both our annual and long-term business strategies, to pay for
performance and to maintain our competitive position in the market in which we compete for executive
talent.
The following are our key financial and operating results for 2013:
• Total sales increased 9.2% over 2012. Sales in same-stores increased 3.3% following a 4.7%
increase in 2012.
• Operating profit increased 4.9% to $1.74 billion, or 9.9% of sales, compared to
$1.66 billion, or 10.3% of sales, in 2012.
• Net income increased 7.6% to $1.025 billion compared to $953 million in 2012, and
earnings per diluted share increased 11.2% to $3.17 compared to $2.85 in 2012.
• We generated $1.213 billion of cash flows from operating activities, an increase of 7.2%
compared to 2012.
• We opened 650 new stores, remodeled or relocated 582 stores, and closed 24 stores,
resulting in a store count of 11,132 on January 31, 2014.
• Adjusted EBITDA, as defined and calculated for purposes of our outstanding performance-
based stock option awards and our outstanding performance share unit awards, was
$2.09 billion versus $1.98 billion in 2012.
• Adjusted ROIC, as defined and calculated for purposes of our outstanding performance
share unit awards, was 19.89% versus 21.06% in 2012.
• Adjusted EBIT, as defined and calculated for purposes of our annual Teamshare bonus
program, was $1.742 billion (94.2% of the target).
2011 Say on Pay Vote. In 2011 our shareholders voted on an advisory basis with respect to our
compensation program for named executive officers. Of the total votes cast (excluding abstentions and
broker non-votes), 96.5% were cast in support of the program. We provide the opportunity to vote on a
nonbinding basis on these matters once every three years, which is the time interval last approved by
our shareholders on a nonbinding basis. We continue to view this vote as supportive of our
compensation policies and decisions. Since 2012, we have made various changes to our compensation
program in order to remain competitive, and we believe these changes further strengthen our program
in ways that support our shareholders’ interests.
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