Kroger 2014 Annual Report Download - page 21
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WithrespecttotherolesofChairmanandCEO,theGuidelinesprovidethattheBoardwilldetermine
whenitisinthebestinterestsofKrogerandourshareholdersfortherolestobeseparatedorcombined,
and the Board exercises its discretion as it deems appropriate in light of prevailing circumstances. Upon
retirementofourformerChairman,DavidB.Dillon,onDecember31,2014,theBoarddeterminedthatitisin
thebestinterestsofKrogerandourshareholdersforonepersontoserveastheChairmanandCEO,aswasthe
casefrom2004through2013.TheBoardbelievesthatthisleadershipstructureimprovestheBoard’sability
tofocusonkeypolicyandoperationalissuesandhelpstheCompanyoperateinthelong-terminterestsof
shareholders.Additionally,thisstructureprovidesaneffectivebalancebetweenstrongCompanyleadership
andappropriatesafeguardsandoversightbyindependentdirectors.TheBoardbelievesthatthecombination
orseparationofthesepositionsshouldcontinuetobeconsideredaspartofthesuccessionplanningprocess,
aswasthecasein2003and2014whentheroleswereseparated.
The Board and each of its committees conduct an annual self-evaluation to determine whether they
are functioning effectively. As part of this annual self-evaluation, the Board assesses whether the current
leadershipstructurecontinuestobe appropriate forKroger andits shareholders.TheGuidelines provide
theflexibilityfortheBoardtomodifyourleadershipstructureinthefutureasappropriate.Webelievethat
Kroger,likemanyU.S.companies,hasbeenwell-servedbythisflexibleleadershipstructure.