Big Lots 2014 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 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

- 30 -
See the “Potential Payments Upon Termination or Change in Control” narrative disclosure and tables following
this CD&A for a discussion of compensation that may be paid to our named executive officers in connection with a
change in control or the termination of their employment with us.
Retirement Plans
We maintain four retirement plans: (1) a tax-qualified defined contribution plan (“Savings Plan”); (2) a non-
qualified supplemental defined contribution plan (“Supplemental Savings Plan”); (3) a tax-qualified, funded
noncontributory defined benefit pension plan (“Pension Plan”); and (4) a non-qualified, unfunded supplemental
defined benefit pension plan (“Supplemental Pension Plan”). We believe that the Savings Plan and Supplemental
Savings Plan are generally commensurate with the retirement plans provided by companies in our comparator
groups and that providing these plans allows us to better attract and retain qualified executives. Participation in
the Pension Plan and Supplemental Pension Plan, which we do not believe are material elements of our executive
compensation program, is limited to certain employees whose hire date precedes April 1, 1994. Mr. Schlonsky is
the only named executive officer eligible to participate in the Pension Plan or Supplemental Pension Plan. See the
“Pension Benefits – Pension Plan and Supplemental Pension Plan” section of this Proxy Statement for a discussion
of our retirement plans.
Our Executive Compensation Program for Fiscal 2015
In establishing the executive compensation program for fiscal 2015, the Committee engaged Exequity to:
• provide comparative compensation data;
• review and recommend changes to our executive compensation program;
• review the appropriateness of our retailer-only comparator group; and
• compare the amount and form of executive compensation paid to our executives against the
compensation paid to similarly-situated executives at companies within the retailer-only
comparator group.
The Committee did not make any material changes to the design of our fiscal 2014 executive compensation
program when establishing our fiscal 2015 compensation program. For fiscal 2015, we awarded time-vested
RSUs and PSUs. The time-vested RSUs are designed to vest ratably over three years from the grant date of the
award and also contain a performance component intended to preserve deductibility under Section 162(m) of the
IRC. The PSUs vest only if we meet performance targets over a three-year performance period. For fiscal 2015,
the PSU performance targets are based on EPS and ROIC, each of which account for 50% of the performance
component of the PSUs. In connection with its review of compensation for fiscal 2015, the Committee, with the
assistance of Exequity, reviewed our retailer comparator group based upon the factors discussed in the Overview
of our Executive Compensation Program - Comparative Compensation Data section of this CD&A. The companies
included in the retailer comparator group for fiscal 2015 are:
Abercrombie & Fitch Dick’s Sporting Goods Genesco
Advance Auto Parts Dollar General Guess
American Eagle Outfitters Dollar Tree Ross Stores
Ascena Retail Group DSW Tractor Supply
Bed Bath & Beyond Family Dollar Williams – Sonoma
Burlington Stores Foot Locker