Kroger 2011 Annual Report Download - page 43

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41
Assuming that a change in control occurred on the last day of Kroger’s fiscal year 2011, and the named
executive officers had their employment terminated, they would receive a maximum payment, or, in the case
of group term life insurance, a benefit having a cost to Kroger, in the amounts shown below:
Name
Severance
Benefit
Additional
Vacation and
Bonus
Accrued
and
Banked
Vacation
Group
Term Life
Insurance
Tuition
Reimbursement
Outplacement
Reimbursement
David B. Dillon . . . . . . . . . . $4,680,000 $99,904 $694,624 $29 $5,000 $10,000
J. Michael Schlotman . . . . . $2,035,000 $36,875 $375,000 $29 $5,000 $10,000
W. Rodney McMullen . . . . . $3,220,000 $67,083 $525,000 $29 $5,000 $10,000
Paul W. Heldman ......... $2,248,000 $39,189 $213,180 $29 $5,000 $10,000
Michael J. Donnelly ....... $1,657,720 $29,901 $ 71,526 $29 $5,000 $10,000
Each of the named executive officers also is entitled to continuation of health care coverage for up to
24 months at the same contribution rate as existed prior to the change in control. The cost to Kroger cannot
be calculated, as Kroger self insures the health care benefit and the cost is based on the health care services
utilized by the participant and eligible dependents.
Under KEPP benefits will be reduced, to the extent necessary, so that payments to an executive officer
will in no event exceed 2.99 times the officer’s average W-2 earnings over the preceding five years.
Kroger’s change in control benefits under KEPP and under equity compensation awards are
discussed further in the Compensation Discussion and Analysis section under the “Retirement and Other
Benefits” heading.
CO M P E N S A T I O N PO L I C I E S A S TH E Y RE L A T E T O RI S K MA N A G E M E N T
Kroger’s compensation policies and practices for its employees are designed to attract and retain highly
qualified and engaged employees, and to minimize risks that would have a material adverse effect on Kroger.
One of these policies, the executive compensation recoupment policy, is more particularly described in the
Compensation Discussion and Analysis. Kroger does not believe that its compensation policies and practices
create risks that are reasonably likely to have a material adverse effect on Kroger.