Big Lots 2012 Annual Report Download - page 36

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- 22 -
The following graph illustrates the total at-risk incentive compensation for each of our named executive
officers as a percentage of the total executive compensation awarded for fiscal 2012:
Percentage of At-Risk Incentive Compensation
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Mr.
Fishman
Mr.
Cooper
Ms.
Bachmann
Mr.
Haubiel
Mr.
Wurl
Mr.
Martin
Mr.
Johnson
Average
Excluding
Mr.
Fishman
88.5% 84.1% 80.4%79.7% 80.7% 81.3%82.6% 81.5%
As reflected in the above graph, a significant portion (88.5% for Mr. Fishman and 81.5% for our
other named executive officers) of total executive compensation awarded to our named executive
officers is at-risk incentive compensation which we believe exemplifies the emphasis of our executive
compensation program on “pay for performance.” In rewarding performance through at-risk incentive
compensation, we believe we align the interests of our executives with those of our shareholders.
x Manage executive compensation costs.
As we discuss in greater detail in the “Comparative Compensation Data” section of this CD&A, we
compare the compensation paid to our executives with the compensation paid to similarly-situated
executives at companies within our peer groups. While this comparison is not a determinative factor for
setting compensation for our executives, we believe our review of the peer group data provides a market
check and supports our belief that we do not overpay our executives and we effectively manage our
executive compensation costs.
x Focus on corporate governance.
Although the compensation committees of some companies make all compensation decisions with
respect to their executives, we believe it is consistent with best practices in corporate governance to
reach a consensus among all outside directors when establishing executive compensation each year.
While the Committee takes the lead in formulating executive compensation, we seek the approval of
our five additional outside directors before finalizing annual executive compensation to provide an
additional check on the appropriateness of the amounts awarded.
Elements of In-Service Executive Compensation
The primary compensation elements we provide to our named executive officers are salary, bonus opportunities
under the 2006 Bonus Plan, equity awards made under the 2005 LTIP or its successor, the 2012 LTIP. In addition,
our named executive officers are entitled to certain personal benefits and perquisites. We believe each of these
individual elements and the total mix of elements are necessary to provide a competitive executive compensation
program, are consistent with our compensation philosophy and advance our compensation objectives.