Kroger 2013 Annual Report Download - page 38

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36
The฀ Compensation฀ Committee,฀ and฀ the฀ independent฀ members฀ of฀ the฀ Board฀ in฀ the฀ case฀ of฀ the฀ CEO,฀
established฀bonus฀potentials,฀shown฀in฀this฀table฀as฀“target”฀amounts,฀for฀the฀performance-based฀annual฀and฀
long-term฀ cash฀ bonus฀ awards฀ for฀ the฀ named฀ executive฀ officers.฀ Amounts฀ were฀ payable฀ to฀ the฀ extent฀ that฀
performance฀met฀specific฀objectives฀established฀at฀the฀beginning฀of฀the฀performance฀period.฀As฀described฀
in฀the฀Compensation฀Discussion฀and฀Analysis,฀actual฀earnings฀under฀the฀annual฀cash฀bonus฀can฀exceed฀the฀
target amounts if performance exceeds the thresholds. The Compensation Committee, and the independent
members฀ of฀ the฀ Board฀ in฀ the฀ case฀ of฀ the฀ CEO,฀ also฀ determined฀ the฀ number฀ of฀ performance฀ units฀ to฀ be฀
awarded to each named executive officer, under which common shares are earned to the extent performance
meets฀objectives฀established฀at฀the฀beginning฀of฀the฀performance฀period.฀The฀performance฀units฀are฀more฀
particularly฀described฀in฀the฀Compensation฀Discussion฀and฀Analysis.
Restrictions฀on฀restricted฀stock฀awards฀made฀to฀the฀named฀executive฀officers฀normally฀lapse,฀so฀long฀
as฀ the฀ officer฀ is฀ then฀ in฀ our฀ employ,฀ in฀ equal฀ amounts฀ on฀ each฀ of฀ the฀ five฀ anniversaries฀ of฀ the฀ date฀ the฀
award฀is฀made,฀except฀that:฀70,000฀shares฀awarded฀to฀Mr.฀McMullen฀in฀2009฀vest฀as฀follows:฀15,000฀shares฀on฀
6/25/2012,฀20,000฀shares฀on฀6/25/2013,฀and฀35,000฀shares฀on฀6/25/2014;฀111,986฀shares฀awarded฀to฀Mr.฀Dillon฀
in฀2012฀vest฀in฀equal฀amounts฀on฀each฀of฀the฀four฀anniversaries฀of฀the฀date฀the฀award฀was฀made;฀13,000฀shares฀
awarded฀to฀Mr.฀Schlotman฀in฀2013฀vest฀as฀follows:฀3,250฀shares฀on฀each฀of฀12/12/2014฀and฀12/12/2015฀and฀
6,500฀shares฀on฀12/12/16;฀18,000฀shares฀awarded฀to฀Ms.฀Barclay฀in฀2012฀vest฀in฀equal฀amounts฀on฀each฀of฀the฀
three฀anniversaries฀of฀the฀date฀the฀award฀was฀made;฀20,000฀shares฀awarded฀to฀Ms.฀Barclay฀in฀2013฀vest฀in฀equal฀
amounts฀on฀each฀of฀the฀two฀anniversaries฀of฀the฀date฀the฀award฀was฀made;฀13,000฀awarded฀to฀Ms.฀Barclay฀
in฀2013฀vest฀as฀follows:฀3,250฀shares฀on฀each฀of฀12/17/2014฀and฀12/17/฀2015฀and฀6,500฀shares฀on฀12/17/2016;฀
10,000฀shares฀awarded฀to฀Mr.฀Ellis฀in฀2012฀vest฀in฀equal฀amounts฀on฀each฀of฀the฀three฀anniversaries฀of฀the฀date฀
the฀award฀was฀made;฀and฀6,667฀shares฀awarded฀to฀Mr.฀Ellis฀in฀2013฀vest฀in฀equal฀amounts฀on฀each฀of฀the฀two฀
anniversaries of the date the award was made. For grants made to the named executive officers in 2013, the
restrictions continue to lapse following retirement if the following criteria are met: the officer is employed for
at฀least฀one฀year฀after฀the฀grant฀of฀the฀restricted฀stock,฀has฀at฀least฀5฀years฀of฀service,฀has฀attained฀the฀age฀of฀
62,฀and฀does฀not฀provide฀services฀to฀a฀competitor฀of฀ours.฀Any฀dividends฀declared฀on฀Kroger฀common฀shares฀
are฀payable฀on฀restricted฀stock.฀Nonqualified฀stock฀options฀granted฀to฀the฀named฀executive฀officers฀vest฀in฀
equal฀amounts฀on฀each฀of฀the฀five฀anniversaries฀of฀the฀date฀of฀grant.