Kroger 2011 Annual Report Download - page 24

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22
•฀ Equity, including performance-based equity;
•฀ Retirement and other benefits; and
•฀ Perquisites.
SA L A R Y
We provide our named executive officers and other employees a fixed amount of cash compensation –
salary – for their work. Salaries for named executive officers (with the exception of the CEO) are established
each year by the Committee. The CEO’s salary is established by the independent directors. Salaries for the
named executive officers were reviewed in June.
The amount of each executive’s salary is influenced by numerous factors including:
•฀ An assessment of individual contribution in the judgment of the CEO and the Committee (or, in the case
of the CEO, of the Committee and the rest of the independent directors);
•฀ Benchmarking with comparable positions at peer group companies;
•฀ Tenure; and
•฀ Relationship with the salaries of other executives at Kroger.
The assessment of individual contribution is based on a subjective determination, without the use of
performance targets, in the following areas:
•฀ Leadership;
•฀ Contribution to the officer group;
•฀ Achievement of established objectives, to the extent applicable;
•฀ Decision-making abilities;
•฀ Performance of the areas or groups directly reporting to the officer;
•฀ Increased responsibilities;
•฀ Strategic thinking; and
•฀ Furtherance of Kroger’s core values.
The amounts shown below reflect the salaries of the named executive officers in effect following the
annual review of their compensation in June of each year.
Salaries
2009 2010 2011
David B. Dillon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,260,000 $1,260,000 $1,290,000
J. Michael Schlotman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 567,000 $ 610,000 $ 650,000
W. Rodney McMullen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 890,000 $ 890,000 $ 910,000
Paul W. Heldman ......................................... $ 710,000 $ 724,000 $ 739,000
Michael J. Donnelly* ...................................... — — $ 531,360
* Mr. Donnelly became a named executive officer in 2011. The salary amount shown reflects his annualized
salary as of the date he became a named executive officer.