Kroger 2014 Annual Report Download - page 18
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• Willingnesstofulfill theobligationsofdirectorsand tomakethecontributionofwhich heorshe
is capable, including regular attendance and participation at Board and committee meetings, and
preparation for all meetings, including review of all meeting materials provided in advance of the
meeting;and
• AbilitytounderstandtheperspectivesofKroger’scustomers,takingintoconsiderationthediversityof
our customers, including regional and geographic differences.
TheCorporateGovernanceCommitteeconsidersracial,ethnic,andgenderdiversitytobeimportant
elementsinpromotingfull,open,andbalanceddeliberationsofissuespresentedtotheBoard.TheCommittee
considersdirectorcandidatesthathelptheBoardreflectthediversityofourshareholders,associates,customers
andthecommunitiesinwhichweoperate.Someconsiderationalsoisgiventothegeographiclocationof
directorcandidatesinordertoprovideareasonabledistributionofmembersfromKroger’soperatingareas.
TheCorporateGovernanceCommitteerecruitscandidatesforBoardmembershipthroughitsownefforts
andthroughsuggestionsfromotherdirectorsandshareholders.Inaddition,theCommitteehasretainedan
independent search firm to assist in identifying and recruiting director candidates who meet the criteria
establishedbytheCommittee.
CO R P O R A T E G O V E R N A N C E
The Board has adopted Guidelines on Issues of Corporate Governance. These Guidelines,
which include copies of the current charters for the Audit, Compensation, and Corporate Governance
Committees,andtheothercommitteesoftheBoard,areavailableonourcorporatewebsiteatir.kroger.com.
ShareholdersmayobtainacopyoftheGuidelinesbymakingawrittenrequesttoKroger’sSecretaryatour
executiveoffices.
IN D E P E N D E N C E
TheBoardhasdeterminedthatallofthenon-employeedirectorshavenomaterialrelationshipswith
Krogerand,therefore,areindependentforpurposesoftheNewYorkStockExchangelistingstandards.The
Boardmadeitsdeterminationbasedoninformationfurnishedbyallmembersregardingtheirrelationships
withKrogeranditsmanagement,andotherrelevantinformation.Afterreviewingtheinformation,theBoard
determinedthatallofthenon-employeedirectorswereindependentbecause(a)theyallsatisfiedthecriteria
forindependencesetforthinRule303A.02oftheNYSEListedCompanyManual,(b)anybusinesstransactions
between Kroger and entities with which the directors are affiliated, the value of which falls below the
thresholdsidentifiedbytheNYSElistingstandards,and(c)nonehadanymaterialrelationshipswithKroger
exceptforthosearisingdirectlyfromtheirperformanceofservicesasadirectorforKroger.
AU D I T C O M M I T T E E E X P E R T I S E
The Board has determined that Susan M. Phillips and Ronald L. Sargent, independent directors who
aremembersoftheAuditCommittee,are“auditcommitteefinancialexperts”asdefinedbyapplicableSEC
regulations and that all members of the Audit Committee are “financially literate” as that term is used in
theNYSElistingstandardsandareindependentinaccordancewithRule10A-3oftheSecuritiesExchange
Actof1934.
CO D E O F E T H I C S
TheBoardhasadoptedThe Kroger Co. Policy on Business Ethics,applicabletoallofficers,employees
anddirectors,includingKroger’sprincipalexecutive,financial,andaccountingofficers.ThePolicyisavailable
onourcorporatewebsiteatir.kroger.com.ShareholdersmayalsoobtainacopyofthePolicybymakinga
writtenrequesttoKroger’sSecretaryatourexecutiveoffices.Weintendtosatisfythedisclosurerequirement
regarding any amendment to, or a waiver from, a provision of the Policyforourprincipalexecutive,financial
andaccountingofficersbypostingthatinformationonourwebsiteatir.kroger.com.