Big Lots 2014 Annual Report Download - page 38

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The Committee establishes the minimum, target and maximum performance levels applicable to the EPS and ROIC
performance goals. For the first year of the fiscal 2014 PSU awards, the Committee established the minimum,
target and maximum EPS performance levels at $1.96, $2.45 and $2.94, respectively, and the minimum, target and
maximum ROIC performance levels at 11.44%, 14.30% and 17.16%, respectively, as such measures will appear in
our Form 10-K for fiscal 2014.
The time-vested RSUs awarded to our named executive officers in fiscal 2014 covered a fixed number of
RSUs. The time-vested RSUs will vest, if at all, ratably over three years from the grant date of the award if the
participant remains employed by us through each annual vesting date (except in the case of death, disability,
retirement, involuntary termination or constructive termination). These RSUs are also subject to an operating profit
performance component that requires us to earn at least one dollar in operating profit for the fiscal year in which
the grant date occurs or in either of the two fiscal years immediately thereafter. The performance component is
designed to preserve the deductibility of the RSU awards under Section 162(m) of the IRC, as such measure will
appear in our Current Report on Form 8-K reflecting the attainment of the performance measure. As a result of our
performance in fiscal 2014, the performance measure for the fiscal 2014 RSU awards was met. Accordingly, the
first third of the fiscal 2014 time-vested RSU award vested on the second trading day after we filed with the SEC
our Current Report on Form 8-K reflecting the attainment of the performance measure.
Personal Benefits and Perquisites
We provide our named executive officers with certain benefits that are available to nearly all salaried employees,
including paid group term life insurance equal to one and a half times base salary, matching contributions to our
Savings Plan, and medical and dental insurance. 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.
Our Executive Benefit Plan reimburses executives for health-related costs incurred but not covered under our Big
Lots Associate 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 65, whichever occurs earlier. We pay the premiums for this long-term disability coverage and also
reimburse our named executive officers for any income taxes resulting from our payment of such premiums.
In fiscal 2014, the Committee authorized Mr. Campisi to use the corporate aircraft for up to $80,000 (as such
amount is calculated as described in the notes accompanying the “Summary Compensation Table for 2014”
section of this CD&A) of non-business flights, including any deadhead flights associated with his non-business
use of corporate aircraft. We reported imputed income for income tax purposes for the value of his non-business
use of corporate aircraft based on the Standard Industry Fare Level in accordance with the IRC. We did not
reimburse or otherwise “gross-up” Mr. Campisi for any income tax obligation attributed to his non-business use of
corporate aircraft.
Big Lots sold its remaining corporate aircraft in the first quarter of 2015 in connection with an organizational
expense reduction initiative. At this time, the Company intends to use leased aircraft when it requires the services
of private aircraft.