AutoZone 2014 Annual Report Download - page 67

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Proxy
The Performance Goals shall be based on the Company, a subsidiary or division, attaining any one or more
of the following:
(a) earnings (including net income);
(b) earnings per share (including diluted earnings per share);
(c) sales;
(d) market share;
(e) operating or net cash flows;
(f) pre-tax profits;
(g) earnings before interest and taxes (EBIT);
(h) return on invested capital;
(i) economic value added;
(j) return on inventory;
(k) EBIT margin;
(l) gross profit margin;
(m) economic profit;
(n) net operating profit after tax;
(o) earnings before interest, taxes, depreciation and amortization (EBITDA);
(p) sales per square foot; or
(q) comparable store sales (including same store sales).
Different measures of goal attainment may be set for different participants, and the Performance Goal may
be a single goal or a range with a minimum goal up to a maximum goal, with corresponding increases in the
incentive award up to the maximum award, each as determined by the Committee, in its sole discretion, and
subject to the requirements of the Plan.
The Committee may, in its sole discretion, approve one or more of the following adjustments to the
Performance Goals, provided, that such adjustments are approved by the Committee within the time prescribed
by, and otherwise in compliance with, Code Section 162(m): the effect of one-time charges and extraordinary
events such as asset write-downs, litigation judgments or settlements, changes in tax laws, accounting principles
or other laws or provisions affecting reported results, accruals for reorganization or restructuring, and any other
extraordinary non-recurring items, acquisitions or divestitures and any foreign exchange gains or losses.
Payment of an earned incentive award will be made in cash. Upon completion of each Performance Period,
once all of the information necessary for the Committee to determine the Company’s performance is made
available to the Committee, the Committee shall review performance versus the established Performance
Goal(s), and shall certify (either by written consent or as evidenced by the minutes of a meeting) the specified
Performance Goals achieved for the Performance Period (if any), and direct which award payments are payable
under the Plan, if any. No payment will be made if the minimum Performance Goal(s) with respect to a
Performance Period are not met. The Committee may, in its discretion, reduce or eliminate an individual’s
award that would have been otherwise paid with respect to a Performance Period; provided, however, that in no
event shall the Committee increase the amount of compensation that would otherwise be due upon attainment of
any Performance Goal with respect to any individual who is a “covered employee” within the meaning of Code
Section 162(m). Notwithstanding the foregoing, no individual may receive in any one fiscal year an award under
the Plan of an amount greater than $4 million.
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