Dollar General 2013 Annual Report Download - page 42
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Bonus payments for financial performance below or above the applicable target levels are
prorated on a graduated scale commensurate with financial performance levels in accordance with the
schedule below.
Adjusted EBIT
% of % of
Performance Bonus
Target(1) Payable(1)
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
110 200
(1) For each 1% increase above 110% of the target performance level, the corresponding payout
increases by 11.21% of the officer’s target payout amount (based upon the officer’s target payout
percentage), consistent with the schedule approved by the Committee in 2007 in reliance upon
benchmarking data which, at that time, indicated that the typical practice was to set the threshold
payout percentage at half of the target and the maximum payout percentage at twice the target.
Payout percentages greater than 200% of the target payout levels are based on an approximate
sharing between Dollar General (80%) and the Teamshare participants (20%) of the incremental
adjusted EBIT dollars earned above 110% of the financial performance level.
(b) 2013 Teamshare Results. The Compensation Committee confirmed the adjusted EBIT
performance result at $1.742 billion (94.2% of target), which was below the threshold performance level
of 95% of the target required for a bonus to be earned. Accordingly, no Teamshare bonus was earned
by our named executive officers.
(c) 2014 Teamshare Structure. The Compensation Committee has approved a 2014
Teamshare structure similar to that which was approved for 2013. The target percentage of each named
executive officer’s salary upon which his bonus is based for the 2014 Teamshare program remains
unchanged from 2013 (for Mr. Vasos, this means 80%).
Following the 2007 merger, to be more consistent with the practices of KKR’s other portfolio
companies, the threshold for a bonus payout was increased from 90% to 95% of the target level of
financial performance and the performance cap was removed. Following KKR’s exit from Dollar
General in December 2013, the Committee determined that the 2014 Teamshare program should more
closely reflect the practices of our market comparator group, including a threshold requirement of 90%
of the target level of financial performance and a performance cap. Therefore, under the 2014
Teamshare program approved by the Committee in March 2014, performance below 90% of the target
level of financial performance will result in no bonus payout and performance at or above 120% of the
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