Big Lots 2013 Annual Report Download - page 53

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Plan are considered “Non-Equity Incentive Plan Compensation” in the Summary Compensation Table.
See the “Bonus and Equity Plans” disclosure that follows the Summary Compensation Table for more
information regarding the 2006 Bonus Plan.
• Equity / Long-Term Incentives
All equity awards granted to our named executive officers since May 23, 2012 have been issued under
the 2012 LTIP. Equity awards are designed to retain executives for the duration of each equity award.
Although the 2012 LTIP allow us to issue various types of equity awards, we have only granted stock
options, time-vested restricted stock and performance share units under the 2012 LTIP as of the end
of fiscal 2013. Stock options vest based on the passage of time or, if earlier, upon the executive’s death
or disability (provided the event occurs at least six months after the grant date). For fiscal 2013, the
time-vested restricted stock awards are full value awards that vest in five years provided that we attain
a performance component, which is designed to preserve deductibility under Section 162(m) of the
IRC. The time-vested restricted stock awards may vest earlier than the five year term if we achieve a
higher performance measure, which is typically based on a projected multi-year corporate operating
plan, the passage of time or the executive’s death or disability. The performance share units awarded
to Mr. Campisi in fiscal 2013 vest in one-third increments if the market price of our common shares
appreciates, for a period of 20 consecutive trading days, to prices that are 110%, 120% and 130% of
the grant date market value of $37.13 (i.e., appreciate to $40.84, $44.56 and $48.27) before the earlier
to occur of the termination of his employment or the seventh anniversary of the grant date. See the
“Bonus and Equity Plans” discussion following the Summary Compensation Table for more information
regarding the 2005 LTIP and 2012 LTIP and the terms under which we have granted equity awards. See
the “Our Executive Compensation Program for Fiscal 2014” section of this CD&A for a summary of
significant changes made to our long-term incentive program in fiscal 2014.
• Personal Benefits and Perquisites
We generally provide the following limited personal benefits and perquisites to employees at or above
the vice president level: (1) coverage under the Big Lots Executive Benefit Plan (“Executive Benefit
Plan”); (2) enhanced long-term disability insurance coverage; and (3) use of an automobile or payment
of an automobile allowance. We believe these personal benefits and perquisites, although immaterial to
us in amount, are an important element of total compensation because of the value our executives place
on these benefits.
We offer all full-time employees medical and dental benefits under the Big Lots Associate Benefit Plan
(“Benefit Plan”). We also offer employees at or above the vice president level, including our named
executive officers, the opportunity to participate in the Executive Benefit Plan, which reimburses
executives for health-related costs incurred but not covered under the Benefit Plan, up to an annual
maximum reimbursement of $40,000 per family. Amounts received by named executive officers
under the Executive Benefit Plan are treated as taxable income, and we reimburse each executive
the approximate amount of his or her income tax liability relating to the benefits received under the
Executive Benefit Plan.
We offer short-term disability coverage to all full-time employees and long-term disability coverage
to all salaried employees. The benefits provided under the long-term disability plan are greater for
our named executive officers than for employees below the vice president level. Under the long-term
disability coverage, a named executive officer may receive 67% of his or her monthly salary, up to
$25,000 per month, until the executive is no longer disabled or turns age 65, whichever occurs earlier.
We pay the premiums for this long-term disability coverage and the amount necessary to hold our
named executive officer harmless from the income taxes resulting from such premium payments.
All employees at or above the vice president level have the option to use an automobile or accept
a monthly automobile allowance. The value of the automobile and the amount of the automobile
allowance are determined based on the employee’s level.
In fiscal 2013, the Committee authorized Mr. Campisi to use the corporate aircraft for up to three
round trip non-business flights, including any deadhead flights associated with his non-business use
of corporate aircraft, to assist with his relocation to near our corporate office in Columbus, Ohio. In