Kroger 2013 Annual Report Download - page 19
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CO M M U N I C A T I O N S W I T H T H E B O A R D
The Board has established two separate mechanisms for shareholders and interested parties to
communicatewiththeBoard.Anyshareholderorinterestedpartywhohasconcernsregardingaccounting,
improperuseofKrogerassets,orethicalimproprietiesmayreporttheseconcernsviathetoll-freehotline
(800-689-4609) or email address (helpline@kroger.com) established by the Board’s Audit Committee. The
concerns are investigated by Kroger’s Vice President of Auditing and reported to the Audit Committee as
deemedappropriatebytheVicePresidentofAuditing.
ShareholdersorinterestedpartiesalsomaycommunicatewiththeBoardinwritingdirectedtoKroger’s
Secretaryatourexecutiveoffices.TheSecretarywillconsiderthenatureofthecommunicationanddetermine
whethertoforwardthecommunicationtothechairoftheCorporateGovernanceCommittee.Communications
relatingtopersonnelissuesorourordinarybusinessoperations,orseekingtodobusinesswithus,willbe
forwardedtothebusinessunitofKrogerthattheSecretarydeemsappropriate.Allothercommunicationswill
beforwardedtothechairoftheCorporateGovernanceCommitteeforfurtherconsideration.Thechairofthe
CorporateGovernanceCommitteewilltakesuchactionasheorshedeemsappropriate,whichmayinclude
referraltotheCorporateGovernanceCommitteeortheentireBoard.
AT T E N D A N C E
TheBoardofDirectorsheldsevenmeetingsin2013.During2013,allincumbentdirectorsattendedat
least75%oftheaggregatenumberofmeetingsoftheBoardandcommitteesonwhichthatdirectorserved.
MembersoftheBoardareexpectedtousetheirbesteffortstoattendallannualmeetingsofshareholders.All
fourteen membersthenservingontheBoardattendedlastyear’sannualmeeting.
CO M P E N S A T I O N C O N S U L T A N T S
TheCompensationCommitteedirectlyengagesacompensationconsultantfromMercerHumanResource
Consulting to advise the Committee in the design of compensation for executive officers. In 2013, Kroger paid
thatconsultant$375,944forworkperformedfortheCommittee.Kroger,onmanagement’srecommendation,
retainedtheparentandaffiliatedcompaniesofMercerHumanResourceConsultingtoprovideotherservices
forKrogerin2013,forwhichKrogerpaid$4,743,100.Theseotherservicesprimarilyrelatedtoinsurance
claims(forwhichKrogerwasreimbursedbyinsurancecarriersasclaimswereadjusted),insurancebrokerage
andbondingcommissions,andpensionconsulting.Krogeralsomadepaymentstoaffiliatedcompaniesfor
insurancepremiumsthatwerecollectedbytheaffiliatedcompaniesonbehalfofinsurancecarriers,butthese
amountsarenotincludedinthetotalsreferencedabove,astheamountswerepaidovertoinsurancecarriers
forservicesprovidedbythosecarriers.AlthoughneithertheCommitteenortheBoardexpresslyapproved
the other services, after taking into consideration the NYSE’s independence standards and the SEC rules,
theCommitteedeterminedthattheconsultantisindependentandhisworkhasnotraisedanyconflictof
interestbecause(a)hewasfirstengagedbytheCommitteebeforehebecameassociatedwithMercer;(b)he
worksexclusivelyfortheCommitteeandnotforourmanagement;(c)hedoesnotbenefitfromtheother
workthatMercer’sparentandaffiliatedcompaniesperformforKroger;and(d)neithertheconsultantnorthe
consultant’steamperformanyotherservicesonbehalfofKroger.
NomemberoftheCompensationCommitteewasanofficeroremployeeoftheCompanyduringfiscal
year2013,andnomemberoftheCompensationCommitteewasformerlyanofficeroftheCompanyorwas
apartytoanydisclosablerelatedpersontransactioninvolvingtheCompany.Duringfiscalyear2013,noneof
theexecutiveofficersoftheCompanyservedontheboardofdirectorsoronthecompensationcommittee
of any other entity that has or had executive officers serving as a member of the Board of Directors or
Compensation Committee of the Company.