Best Buy 2010 Annual Report Download - page 27

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Collectively, these elements comprise our ‘‘Total employees, including our named executive officers. The
Rewards’’ philosophy. We believe this approach to Compensation Committee is authorized to delegate to
attracting, motivating and retaining talent creates a management certain responsibilities regarding our
competitive advantage. employee compensation and benefit plans, as specified
in the Compensation Committee’s charter, which is
Our Total Rewards philosophy seeks to: posted on our Web site at www.bby.com — select the
• Provide employees a wide array of rewards; ‘‘Investor Relations’’ link and then the ‘‘Corporate
Governance’’ link.
• Differentiate rewards to individuals, based on
their contributions; The Compensation Committee established and reviews
our Total Rewards philosophy and our compensation
• Encourage and recognize experimentation,
objectives, and oversees the design, competitiveness and
entrepreneurship and innovation; and
effectiveness of compensation programs for our
• Reward employee contributions toward achieving executive officers. During the first quarter of each fiscal
desired financial and non-financial results. year, our Human Resources leadership team (‘‘HR’’)
provides the Compensation Committee with
We implement the Total Rewards philosophy by
compensation recommendations for the executive
employing broad-based programs that are designed to
officers. HR’s presentation includes an analysis prepared
align employee interests with company goals and create
in support of the recommendations. The analysis
a common vision of success.
includes a summary of the results of our application to
Compensation Objectives. Our compensation program each of our executive officers of several internal and
and policies serve the following objectives: external factors, as set forth below, which we refer to as
• Reward employees for creating shareholder value our ‘‘Executive Compensation Framework.’’ The internal
and for achieving key strategic objectives; factors are generally applied and analyzed by HR. HR
has engaged a third-party compensation consultant,
• Align long-term employee and shareholder Towers Watson (formerly Towers Perrin), a global
interests; professional services firm, to assist in the development
• Motivate employees to achieve short-term of compensation data that is used to facilitate the
financial, operational, customer and employee application and analysis of the external factors. The
outcomes that materially contribute to our Compensation Committee reviews HR’s
sustainable, long-term corporate success; recommendations with The Delves Group, an
independent compensation consulting firm retained by
• Attract and retain talent necessary to develop
the Compensation Committee, and discusses them with
new capabilities and enhance existing
HR. The Compensation Committee’s review is
competencies; and
comprehensive and considers factors such as: (i) the
• Maintain a flexible compensation structure that alignment of the proposed compensation with our Total
allows employees to share in our success. Rewards philosophy; (ii) the alignment of the proposed
compensation with our compensation objectives; (iii) the
How We Determine Compensation. The Compensation
overall value of the compensation package, relative to
Committee is responsible for determining and approving
internal factors and external benchmarks; and (iv) our
executive compensation. In addition, the Compensation
decision not to offer certain benefits and perquisites
Committee oversees the development, evaluation and
offered to executive officers of other large companies.
approval of incentive compensation, equity-based pay
and other material employee benefit plans for all
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