Dollar General 2013 Annual Report Download - page 47

We pay the premiums for each named executive officer’s life insurance benefit equal to 2.5
times his base salary up to a maximum of $3 million. We eliminated the tax gross-up on this perquisite
beginning with tax year 2013.
We also provide a relocation assistance program to named executive officers under a policy
applicable to officer-level employees and similar to that offered to certain other employees. The
significant differences between the relocation assistance available to officers from the relocation
assistance available to non-officers include:
• A greater miscellaneous expense allowance, which is not grossed up;
• Reimbursement for expenses incurred on home finding trips;
• Reimbursement for 90 days of temporary living expenses (non-officers are reimbursed for
an amount that varies by position);
• Reimbursement for rent payments for canceling a lease in the origination location (certain
non-officers receive);
• Storage of household goods for entire temporary living period;
• Former home sale assistance through a guaranteed buyout offer;
• Reimbursement for all reasonable and customary home purchase closing costs except for
loan origination fees which are limited to 1%;
• Reimbursement for certain move-related expenses to the new location; and
• Reimbursement for 3 return trips to the origination location during the temporary living
period.
In 2013, Mr. Sparks was granted an additional 12 return trips to his origination location to use
over a longer period of time because his family was not able to immediately relocate with him.
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. The Committee believes the financial services 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. We eliminated the tax gross-up on this perquisite beginning with tax
year 2013.
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 corporate aircraft for 80 hours per year or a greater number of hours
specified by the Compensation Committee.
• Payment of monthly membership fees and costs related to his membership in professional
clubs selected by him (to date, Mr. Dreiling has not availed himself of this right).
• Payment of the premiums on certain personal long-term disability insurance policies.
• Reimbursement of reasonable legal fees, up to $15,000, incurred by him in connection with
any legal consultation regarding his amended employment agreement.
Severance Arrangements
As noted above, we have an employment agreement with each of our named executive officers
that, among other things, provides for such executive’s rights upon a termination of employment. We
believe that reasonable severance benefits are appropriate to protect the named executive officer
against circumstances over which he does not have control and as consideration for the promises of
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