Kroger 2015 Annual Report Download - page 41

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39
compensation expense for those awards to the covered employees is not deductible, to the extent that
the related compensation expense, plus any other expense for compensation that is not performance-
based, exceeds $1,000,000.
Kroger’s bonus plans rely on performance criteria, which have been approved by shareholders. As a
result, bonuses paid under the plans to the covered employees should be deductible by Kroger.
Kroger’s policy is, primarily, to design and administer compensation plans that support the
achievement of long-term strategic objectives and enhance shareholder value. Where it is material and
supports Kroger’s compensation philosophy, the Compensation Committee also will attempt to maximize
the amount of compensation expense that is deductible by Kroger.
Compensation Committee Report
The Compensation Committee has reviewed and discussed with management of the Company
the Compensation Discussion and Analysis contained in this proxy statement. Based on its review and
discussions with management, the Compensation Committee has recommended to the Company’s
Board that the Compensation Discussion and Analysis be included in the Company’s proxy statement
and incorporated by reference into its Annual Report on Form 10-K.
Compensation Committee:
Clyde R. Moore, Chair
Jorge P. Montoya
Susan M. Phillips
James A. Runde