Kroger 2013 Annual Report Download - page 37

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35
Name
Grant
Date
Estimated Future
Payouts Under
Non-Equity
Incentive Plan Awards
Estimated Future
Payouts Under
Equity Incentive
Plan Awards
All Other
Stock
Awards:
Number
of Shares
of Stock
or Units
(#)
All Other
Option
Awards:
Number of
Securities
Underlying
Options
(#)
Exercise
or Base
Price of
Option
Awards
($/Sh)
Grant
Date Fair
Value of
Stock and
Option
Awards
Target
($)
Maximum
($)
Target
(#)
Maximum
(#)
(3) (4)
Paul฀W.฀Heldman $ 550,000(1) $1,100,000(1)
$ 381,500(2) $ 763,000(2)
7/15/2013 18,525 $ 699,504
7/15/2013 49,400 $ 37.76 $ 460,267
7/15/2013 6,175(5) 12,350(5) $ 245,117(5)
Michael฀L.฀Ellis $ 375,000(1) $ 750,000(1)
$ 256,000(2) $ 512,000(2)
7/15/2013 9,510 $ 359,098
12/12/2013 25,000 $ 999,750
7/15/2013 25,360 $37.76 $ 236,283
7/15/2013 3,170(5) 6,340(5) $ 125,833(5)
(1)฀ The฀amount฀listed฀under฀“Target”฀for฀each฀named฀executive฀officer฀represents฀the฀bonus฀potential฀of฀
the฀named฀executive฀officer฀under฀the฀Company’s฀2013฀performance-based฀annual฀cash฀bonus฀program.฀
By฀the฀terms฀of฀this฀plan,฀payouts฀are฀limited฀to฀no฀more฀than฀200%฀of฀a฀participant’s฀bonus฀potential;฀
accordingly,฀the฀amount฀listed฀under฀“Maximum”฀equals฀two฀times฀that฀officer’s฀bonus฀potential฀amount.฀
In฀connection฀with฀his฀promotion฀on฀January฀1,฀2014,฀Mr.฀McMullen฀was฀eligible฀for฀a฀bonus฀based฀on฀
a฀proration฀ of฀his฀bonus฀potential฀of฀$1,000,000฀and฀of฀his฀revised฀bonus฀ potential฀of฀$1,500,000.฀In฀
connection฀with฀his฀promotion฀on฀January฀1,฀2014,฀Mr.฀Ellis฀was฀eligible฀for฀a฀bonus฀based฀on฀a฀proration฀
of฀his฀bonus฀potential฀of฀$375,000฀and฀of฀his฀revised฀bonus฀potential฀of฀$750,000.฀The฀amount฀actually฀
earned฀ under฀ this฀ plan฀ is฀ shown฀ in฀ the฀ Summary฀ Compensation฀ Table฀ for฀ 2013฀ and฀ is฀ described฀ in฀
footnote฀4฀to฀that฀table.
(2)฀ This฀ amount฀ represents฀ the฀ bonus฀ potential฀ of฀ the฀ named฀ executive฀ officer฀ under฀ the฀ cash฀ bonus฀
component฀of฀the฀Company’s฀performance-based฀2013฀Long-Term฀Incentive฀Plan.฀“Maximum”฀amount฀
equals฀the฀annual฀base฀salary฀of฀the฀named฀executive฀officers฀as฀of฀the฀last฀day฀of฀fiscal฀year฀2012.฀Bonuses฀
are฀determined฀upon฀completion฀of฀the฀performance฀period฀as฀of฀fiscal฀year฀ending฀2015.฀Because฀the฀
target฀amount฀is฀not฀determinable,฀the฀amount฀listed฀under฀“Target”฀reflects฀a฀representative฀amount฀
based฀on฀the฀probable฀outcome฀of฀the฀performance฀conditions.
(3)฀ This฀amount฀represents฀the฀number฀of฀restricted฀shares฀awarded฀under฀one฀of฀the฀Company’s฀long-term฀
incentive plans.
(4)฀ This฀amount฀represents฀the฀ number฀of฀stock฀options฀granted฀under฀one฀of฀the฀Company’s฀long-term฀
incentive฀plans.฀Options฀are฀granted฀at฀fair฀market฀value฀of฀Kroger฀common฀shares฀on฀the฀date฀of฀the฀
grant.฀Fair฀market฀value฀is฀defined฀as฀the฀closing฀price฀of฀Kroger฀shares฀on฀the฀date฀of฀the฀grant.
(5)฀ Performance฀units฀were฀awarded฀under฀the฀Company’s฀performance-based฀2013฀Long-Term฀Incentive฀
Plan.฀The฀“Maximum”฀amount฀represents฀the฀maximum฀number฀of฀common฀shares฀that฀can฀be฀earned฀
by฀the฀named฀executive฀officer฀under฀the฀award.฀Because฀the฀target฀amount฀of฀common฀shares฀is฀not฀
determinable,฀the฀amount฀listed฀under฀“Target”฀reflects฀a฀representative฀amount฀based฀on฀the฀probable฀
outcome of the performance conditions. The dollar amount listed in the grant date fair value column
is฀ the฀ value฀ at฀ the฀ grant฀ date฀ based฀ on฀ the฀ probable฀ outcome฀ of฀ these฀ conditions.฀ This฀ amount฀ is฀
consistent฀with฀the฀estimate฀of฀aggregate฀compensation฀cost฀to฀be฀recognized฀by฀the฀Company฀over฀the฀
three-year฀performance฀period฀determined฀as฀of฀the฀grant฀date฀under฀FASB฀ASC฀Topic฀718,฀excluding฀
the฀ effect฀ of฀ estimated฀ forfeitures,฀ along฀ with฀ estimated฀ cash฀ payments฀ equal฀ to฀ projected฀ dividend฀
equivalent฀payments.