Kroger 2014 Annual Report Download - page 26
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CO M P O N E N T S O F E X E C U T I V E C O M P E N S A T I O N A T K R O G E R
Compensationforournamedexecutiveofficersiscomprisedofthefollowing:
• Salary;
• Performance-BasedAnnualCashBonus(annual,non-equityincentivepay);
• Performance-Based Long-Term Compensation (long-term, cash and performance unit incentive
compensation);
• OtherEquity(non-qualifiedstockoptionsandrestrictedstock);
• Retirementandotherbenefits;and
• Perquisites.
SA L A R Y
Weprovideournamedexecutiveofficer’sandotheremployeesafixedamountofcashcompensation,
salary,fortheirwork.Salariesforthenamedexecutiveofficers(withtheexceptionoftheCEO)areestablished
eachyearbytheCommittee,inconsultationwiththeCEO.TheCEO’ssalaryisestablishedbytheindependent
directors.SalariesforthenamedexecutiveofficerswerereviewedinJune2014.
Theamountofeachnamedexecutiveofficer’ssalaryisinfluencedbynumerousfactorsincluding:
• AnassessmentofindividualcontributioninthejudgmentoftheCEOandtheCommittee(or,inthecase
oftheCEO,oftheCommitteeandtherestoftheindependentdirectors);
• Benchmarkingwithcomparablepositionsatpeergroupcompanies;
• Tenure;and
• RelationshipwiththesalariesofotherexecutivesatKroger.
The assessmentofindividualcontributionisbased onasubjectivedetermination,withouttheuseof
performancetargets,inthefollowingareas:
• Leadership;
• Contributiontotheofficergroup;
• Achievementofestablishedobjectives,totheextentapplicable;
• Decision-makingabilities;
• Performanceoftheareasorgroupsdirectlyreportingtotheofficer;
• Increasedresponsibilities;
• Strategicthinking;and
• FurtheranceofKroger’scorevalues.
The amounts shown below reflect the salaries of the named executive officers effective August 1,
followingtheannualreviewoftheircompensationinJune.
Salaries
2012 2013 2014
W.RodneyMcMullen* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 939,600 $ 968,600 $1,144,000
J.MichaelSchlotman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 671,100 $ 704,655 $ 760,000
MichaelL.Ellis**. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ 527,360 $ 800,000
KathleenS.Barclay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 677,300 $ 700,000 $ 721,000
MikeDonnelly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 550,500 $ 567,015 $ 662,900
DavidB.Dillon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,330,000 $1,370,000 $1,370,000
* Mr.McMullen’ssalaryincreasedto$1,200,000effectiveuponhisappointmentasChairmanoftheBoard
onJanuary1,2015.
** Mr.Ellisfirstbecameanamedexecutiveofficerin2013.