Big Lots 2010 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2010 Big Lots 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.

Page out of 162

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162

- 28 -
Performance Evaluation
Our CEO, the Committee and the outside directors do not rely solely on predetermined formulas when they
evaluate corporate performance or individual performance. Performance is generally evaluated against the
following objective and subjective factors, although the factors considered may vary for each executive and as
dictated by business conditions:
• long-term strategic goals;
• short-term business goals;
• profit and revenue goals;
• expense goals;
• operating margin improvement;
• revenue growth versus the industry;
• earnings-per-share growth;
• continued optimization of organizational effectiveness and productivity;
• leadership and the development of talent; and
• fostering teamwork and other corporate values.
Our CEO, the Committee and the outside directors may each consider different factors and may value the same
factors differently. In selecting individual and corporate performance factors for each EMC member and measuring
an executive’s performance against those factors, our CEO, the Committee and the other outside directors also
consider the performance of our competitors and general economic and market conditions. None of the factors are
assigned a specific weight. Instead, our CEO, the Committee and the other outside directors recognize that the
relative importance of these factors may change as a result of specific business challenges and changing economic
and marketplace conditions. So although the Committee and the other outside directors consider our CEO’s
recommendations, the Committee and the other outside directors may not follow, and are not bound by, our CEO’s
recommendations on executive compensation.
Fiscal 2010 compensation for our named executive officers was made at the discretion of the Committee and the
other outside directors and was generally based upon the factors discussed in this CD&A, including corporate
and individual performance and comparative compensation data. Specifically, the following items of corporate
and individual performance were most significant in awarding compensation to our named executive officers for
fiscal 2010.
• Mr. Fishman:
(i) Fiscal 2009 earnings per common share from continuing operations-diluted was $2.44 –
approximately 29.1% above our fiscal 2009 corporate operating plan and our fiscal 2008 results;
(ii) Fiscal 2009 operating profit was $325.0 million – approximately 27.5% above our fiscal 2009
corporate operating plan and our fiscal 2008 results;
(iii) Fiscal 2009 income from continuing operations was $201.4 million – approximately 28.3% above
our fiscal 2009 corporate operating plan and approximately 30.1% above our fiscal 2008 results;
(iv) Fiscal 2009 SG&A expenses were $1,607.3 million – approximately $10.8 million below our fiscal
2009 corporate operating plan;
(v) Significant increase in our cash flow in fiscal 2009 as compared to our fiscal 2009 corporate
operating plan and fiscal 2008 results; and
(vi) Continued progress of our executive succession plan.