Kroger 2014 Annual Report Download - page 51
Download and view the complete annual report
Please find page 51 of the 2014 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.49
(6) Aggregatenumberofstockoptionsoutstandingatfiscalyearendwas37,500shares.
(7) Aggregatenumberofstockoptionsoutstandingatfiscalyearendwas46,500shares.
(8) Aggregatenumberofstockoptionsoutstandingatfiscalyearendwas42,500shares.
(9) Aggregatenumberofstockoptionsoutstandingatfiscalyearendwas19,500shares.
(10) ThisamountreflectsthechangeinpensionvalueforMessrs.AndersonandMoore.Onlythosedirectors
electedtotheBoardpriortoJuly17,1997areeligibletoparticipateintheoutsidedirectorretirementplan.
(11) This amount reflects preferential earnings on nonqualified deferred compensation. For a complete
explanationofpreferentialearnings,pleaserefertofootnote5totheSummaryCompensationTable.
Each non-employee director receives an annual retainer of $85,000. The chairs of each of the Audit
Committee andthe Compensation Committeereceivean additionalannual retainerof$20,000.The chair
of each of the other committees receives an additional annual retainer of $15,000. Each member of the
Audit Committee receives an additional annual retainer of $10,000. The director designated as the Lead
Directorreceivesanadditionalannualretainerof$25,000.Beginningin2013,incentiveshareswereissued
to non-employee directors in lieu of options and restricted stock, as a portion of the directors’ overall
compensation.OnJuly15,2014,eachnon-employeedirector,exceptforMs.AufreiterandMessrs.Anderson
and Rogel, received 3,350 common shares. On July 15, 2014, Messrs. Anderson and Rogel received 1,367
common shares, which represents a prorated portion of the annual grant as a result of their planned retirement.
Ms.Aufreiterreceived1,578commonsharesonDecember11,2014uponjoiningtheBoard.
Non-employeedirectorsfirstelectedpriortoJuly17,1997receiveanunfundedretirementbenefitequal
totheaveragecashcompensationforthefivecalendaryearsprecedingretirement.OnlyMessrs.Anderson
andMooreareeligibleforthisbenefit.ParticipantswhoretirefromtheBoardpriortoage70willbecredited
with 50%vestingafterfive yearsofservice,and10% foreachadditionalyear uptoamaximumof100%.
Benefitsforparticipantswhoretirepriortoage70beginatthelaterofactualretirementorage65.Because
Mr.Andersonretiredafterreachingage70,hewillreceivethefullannualbenefitof$75,833,whichwillbe
paidonamonthlybasis.
We also maintain a deferred compensation plan, in which all non-employee directors are eligible to
participate.Participantsmaydeferupto100%oftheircashcompensation.Theymayelectfromeitherorboth
ofthefollowingtwoalternativemethodsofdeterminingbenefits:
• interestaccruesuntilpaidoutattherateofinterestdeterminedpriortothebeginningofthedeferral
yeartorepresentKroger’scostoften-yeardebt;and/or
• amountsarecreditedin“phantom”stockaccountsandtheamountsinthoseaccountsfluctuatewiththe
priceofKrogercommonshares.
In bothcases,deferredamountsare paidoutonlyincash,basedondeferraloptionsselectedbythe
participantatthetimethedeferralelectionsaremade.Participantscanelecttohavedistributionsmadein
alump sum orinquarterlyinstallments,and maymakecomparable elections fordesignated beneficiaries
whoreceivebenefitsintheeventthatdeferredcompensationisnotcompletelypaidoutuponthedeathof
the participant.
The Board has determined that compensation of non-employee directors must be competitive on
an on-going basis to attract and retain directors who meet the qualifications for service on the Board.
Non-employee director compensation will be reviewed from time to time as the Corporate Governance
Committeedeemsappropriate.