Dollar General 2014 Annual Report Download - page 44

Proxy
Officer Level Multiple of Base Salary
CEO 5X
COO 4X
EVP 3X
SVP 2X
Each senior officer is required to retain ownership of 50% of all net after-tax shares granted by
Dollar General until he or she reaches the target. Administrative details pertaining to these matters are
established by the Compensation Committee.
(e) Policy Against Hedging and Pledging Transactions. Our Insider Trading Policy prohibits
Board members and executive officers from pledging Dollar General securities as collateral, from
holding Dollar General securities in a margin account, and from hedging their ownership of Dollar
General stock. Examples of hedging ownership include entering into or trading prepaid variable
forward contracts, equity swaps, collars, puts, calls, options (other than those granted under a Dollar
General compensation plan) or other derivative instruments related to Dollar General stock.
Benefits and Perquisites. Along with certain benefits offered to named executive officers on the
same terms that are offered to all of our salaried employees (such as health benefits and matching
contributions under our 401(k) Plan), we provide our named executive officers with certain additional
benefits and perquisites for retention and recruiting purposes 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. We do not provide tax gross-up payments on any benefits and perquisites other than
relocation-related items.
The named executive officers have the opportunity to participate in the Compensation Deferral
Plan (the ‘‘CDP’’), and Messrs. Dreiling and Tehle further participate in the defined contribution
Supplemental Executive Retirement Plan (the ‘‘SERP,’’ and together with the CDP, the ‘‘CDP/SERP
Plan’’).
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 pay administrative fees for each named executive officer for short-term disability coverage,
which provides income replacement of up to 70% of monthly base salary in the case of a short-term
disability. We also pay the premiums for each named executive officer under a group long-term
disability plan, which provides 60% of base salary up to a maximum of $400,000.
We also provide a relocation assistance program to named executive officers under a policy
applicable to officer-level employees. Pursuant to Compensation Committee approval, Mr. D’Arezzo
was reimbursed for 9 return trips to his origination location until his family was able to 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.
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