Big Lots 2007 Annual Report Download - page 39

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For purposes of evaluating executive compensation for fiscal 2007, the peer group was comprised of the following
94 companies which responded to one of several compensation surveys that we obtained from Mercer Human
Resource Consulting, Towers Perrin, and Hewitt Associates:
7-Eleven CVS Pharmacy Limited Brands Roundy’s Supermarkets
A&P Supermarkets Darden Restaurants Linens ‘N Things RSC Equipment Rental
Adidas America Den ny’s Liz Claiborne Safeway
Advance Auto Parts Dick’s Sporting Goods Longs Drug Stores Sara Lee
Albertsons Dollar General Lowe’s Sears
Amazon.com Eddie Bauer McDonald’s Sports Authority
Ann Taylor Federated Department Stores Mer vy n’s Staples
Applebee’s FedEx Kinko’s Neiman Marcus Stein Mart
AutoZone Fingerhut Nordstrom Sur La Table
Belk Foot Locker O’Charley’s Talbots
Best Buy Gap Office Depot Target
BJ’s Wholesale Club Goody’s Family Clothing Oriental Trading Timberland
Blockbuster Hannaford Pacific Sunwear TJX Companies
Bob Evans Farms Harry Winston Papa John’s Toys ‘R’ Us
Bob-Ton Home Decorators Collection Payless Shoes True Value Hardware
Brown Shoe Home Depot Petco United Rentals
CDW Home Interiors and Gifts PetsMart United Stationers
Chanel Hy-Vee Phillips-Van Heusen Walgreen
Charming Shoppes J. Crew Pier 1 Imports Warnaco
Circle K J.C. Penney Polo Ralph Lauren Whole Foods
Circuit City Kohl’s Radio Shack Williams-Sonoma
Coach L.L. Bean Raley’s Superstores Yum! Brands
Columbia Sportswear Levi Strauss Redcats USA
Crosstown Traders Lillian Vernon Ross Stores
Tally Sheets and Wealth Accumulation
The Committee reviewed tally sheets that set forth the total compensation awarded to each EMC member
for the immediately preceding two fiscal years, as well as estimated post-employment and change in control
compensation that may be payable to such executives. The purpose of the tally sheets is to consolidate all elements
of actual and projected compensation for our executives, so the Committee may analyze the individual elements
of compensation, the mix of compensation, and the total amount of actual and projected compensation. With
this information, the Committee determined that the compensation awarded to our executives is reasonable and
consistent with our executive compensation philosophy and objectives.
These tally sheets also included an estimate of the amount of total value accumulated, and total value that will
be accumulated, by each EMC member through prior equity awards (assuming employment continues, awards
vest and the market price of our common shares fluctuates through the life of the awards). While the Committee
considered the accumulated total value as a factor in setting fiscal 2007 compensation, this information was not
a primary consideration. The Committee believes that its objectives of motivating executives to achieve short-
term and long-term goals, rewarding executives for achieving those goals, and providing incentives for executives
to continue their employment with us would not be adequately served if the accumulated total value of an EMC
member’s equity awards was a determinative factor in awarding future compensation.
Internal Pay Equity
In the process of reviewing each component of executive compensation separately and in the aggregate, the
Committee directed our human resources department to prepare an internal pay equity analysis comparing the
relative compensation between the CEO and the other EMC members. This analysis was considered to ensure
that our executive compensation program is internally consistent and equitable, both of which we believe promote
executive retention and motivation. The comparison included all components of compensation. Prior to hiring