Kroger 2013 Annual Report Download - page 46

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44
•฀ Kroger’s฀shareholders฀approve฀a฀plan฀of฀complete฀liquidation฀or฀winding฀up฀of฀Kroger฀or฀an฀agreement฀
for฀the฀sale฀or฀disposition฀of฀all฀or฀substantially฀all฀of฀Kroger’s฀assets;฀or
•฀ during฀any฀period฀of฀24฀consecutive฀months,฀individuals฀at฀the฀beginning฀of฀the฀period฀who฀constituted฀
Kroger’s฀Board฀of฀Directors฀cease฀for฀any฀reason฀to฀constitute฀at฀least฀a฀majority฀of฀the฀Board฀of฀Directors.฀
Assuming that a change in control occurred on the last day of Kroger’s fiscal year 2013, 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 . . . . . . . . $4,958,446 $107,366 $776,640 $32 $5,000 $10,000
W.฀Rodney฀McMullen . . . $3,458,466 $73,132 $592,448 $32 $5,000 $10,000
J.฀Michael฀Schlotman . . . $2,187,021 $40,364 $423,744 $32 $5,000 $10,000
Kathleen฀S.฀Barclay . . . . . $2,204,318 $ 41,224 $ 66,030 $32 $5,000 $10,000
Paul฀W.฀Heldman . . . . . . . $2,375,510 $42,047 $222,780 $32 $5,000 $10,000
Michael฀L.฀Ellis . . . . . . . . $1,654,634 $29,166 $ 93,384 $32 $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฀the฀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 P O L I C I E S A S T H E Y R E L A T E T O R I S K M A 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.