Kroger 2010 Annual Report Download - page 60

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58
Tax Deductibility Cap. Section 162(m) of the Code provides that certain compensation received in
any year by a “covered employee” in excess of $1,000,000 is non-deductible by Kroger for federal income
tax purposes. Section 162(m) provides an exception, however, for “performance-based compensation.” To
the extent practicable under the circumstances, the Committee currently intends to structure grants and
awards made under the Plan to “covered employees” as performance-based compensation that is exempt
from Section 162(m).
This summary of the 2011 Long-Term Incentive and Cash Bonus Plan is qualified in its entirety by the
complete text of the Plan that is set forth in Appendix 1 of this Proxy Statement.
EX I S T I N G PL A N S
As of our fiscal year ended January 29, 2011, there were 12,241,518 shares remaining for future issuance
under existing equity compensation plans. Of these shares, 3,755,087 shares were available for awards
other than options or stock appreciation rights. Under some of these plans, this sublimit on full value
shares can be increased by decreasing by four the total number of shares issuable under the plan for each
such increased share.
TH E BO A R D O F DI R E C T O R S RE C O M M E N D S A VO T E F O R TH I S PR O P O S A L .
NE W PL A N BE N E F I T S
2011 Long-Term Incentive and Cash Bonus Plan
Name and Position (1) Dollar value ($) Number of Units
All Groups .................................... (1) (1)
(1) Awards, values and benefits not determinable for any Group.
EQ U I T Y CO M P E N S A T I O N PL A N IN F O R M A T I O N
The following table provides information regarding shares outstanding and available for issuance
under the Company’s existing equity compensation plans.
(a) (b) (c)
Plan Category
Number of securities
to be issued
upon exercise of
outstanding options,
warrants and rights
(1)
Weighted-average
exercise price of
outstanding options,
warrants and rights
Number of securities
remaining for future
issuance under equity
compensation plans
(excluding securities
reflected in column
(a))(2)
Equity compensation plans approved
by security holders . . . . . . . . . . . . . 36,239,494 $21.45 12,241,518
Equity compensation plans not
approved by security holders . . . . . — $ ——
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,239,494 $21.45 12,241,518