Big Lots 2014 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2014 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 170

  • 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
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170

- 20 -
The Committee then shared its compensation recommendations, including the underlying data and analysis, with
the other outside directors for their consideration and approval. The Committee’s recommendations were consistent
with Mr. Campisi’s recommendations. At the March 2014 Board meeting, the outside directors discussed with
the Committee the form, amount of, and rationale for the recommended compensation and, consistent with the
Committee’s recommendations, finalized the compensation awards for the Leadership Team members.
Performance Evaluation
Our CEO, the Committee and our outside directors generally consider the following objective and subjective
factors when evaluating the performance of the members of our Leadership Team, although the factors considered
may vary for each executive:
• long-term strategic goals;
• short-term business goals;
• profit and revenue goals;
• expense goals;
• operating margin improvement;
• same store sales 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 other outside directors do not assign any of these performance factors a specific
weight when they evaluate corporate performance or individual performance. Our CEO, the Committee and our
other outside directors also consider the performance of our competitors, specific business challenges and general
economic and market conditions in their performance evaluations. See the “Comparative Compensation Data”
section of this CD&A for more information regarding the impact that the competitive market has on our executive
compensation program.
Although the Committee and the other outside directors consider our CEO’s recommendations, the Committee and
the other outside directors may elect to not follow, and are not bound by, our CEO’s recommendations on executive
compensation. Our CEO, the Committee and the outside directors may consider different factors and may value the
same factors differently.
The following items of corporate and individual performance were most significant in determining the base salary
and equity awards provided to our named executive officers for fiscal 2014.
• Mr. Campisi:
(1) Implemented and executed a multi-year strategic planning process designed to better meet the
expectations of our customers, improve the corporate culture for our employees and create value
for our shareholders;
(2) Recruited and effectively integrated a significant portion of our Leadership Team;
(3) Improved our merchandising mix and introduced disciplined approaches for our product sourcing
and purchasing decisions; and
(4) Stabilized the Company by more clearly defining our business focus, including closing our
wholesale and Canadian operations.