Big Lots 2015 Annual Report Download - page 39

The Committee also reviewed aggregated executive compensation data regarding broader groups of
companies included in compensation surveys provided by Mercer, Towers Watson and Hay. These
broader comparator groups consisted of the Standard & Poor’s Retail Stores Index companies and
other companies, including non-retailers, with whom we believe we compete for talent and whose
revenues or operations are similar to ours. We believed it was prudent to consult both sets of
information because the compensation surveys for the broader groups include compensation
information on more executives and provide a more extensive basis on which to compare the
compensation of the Leadership Team members, particularly those Leadership Team members whose
responsibilities, experience and other factors are not directly comparable to the executives included in
the publicly-available reports of the retailer comparator group. The comparator groups may vary from
year to year based on the Committee’s assessment of which companies compete with us for talent and
are similar to us in terms of operations or revenues and whether compensation information for the
companies remains publicly available.
The Committee and our human resources department reviewed each Leadership Team member’s
responsibilities and compared, where possible, the total direct compensation levels for our Leadership
Team members to the total direct compensation of similarly situated executives within the comparator
groups. For purposes of this evaluation, no specific weight was given to one comparator group over the
other and total direct compensation was comprised of salary, annual incentive award at target and
equity awards.
While we evaluate total direct compensation awarded to Leadership Team members against the total
direct compensation paid by the comparator groups, this evaluation merely provides a point of
reference and market check and is not a determinative factor for setting our executives’ compensation.
As discussed in this CD&A, compensation is subjectively determined based on numerous factors. We
do not benchmark or target our compensation at any particular level in relation to the compensation of
the comparator groups. We believe that our use of compensation data enables us to retain the
flexibility necessary to make adjustments for performance and experience, attract, retain and motivate
top talent, and reward executives who we believe excel or take on greater responsibility than
executives at comparator companies.
Elements of our Executive Compensation for Fiscal 2015
The primary compensation elements we provide to our named executive officers are salary, bonus
opportunities under the 2006 Bonus Plan and equity awards under the 2012 LTIP. In addition, our
named executive officers are entitled to certain limited 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 and advance our compensation philosophy and objectives.
Salary for Fiscal 2015
The Committee annually reviews and establishes the salary for each named executive officer. Salary
serves as a short-term retention tool. A minimum salary for Mr. Campisi and Ms. Bachmann is set forth
in his or her respective employment agreement, as described below in the “Elements of our Executive
Compensation for Fiscal 2015 – Employment Agreements” section of this CD&A. Salary adjustments
are based on a thorough and robust review of each named executive officer’s performance, but
specific salary increases are not formally tied to any specific accomplishment.
In reviewing the salaries of our named executive officers, the Committee considered, among other
factors, each executive’s past performance, experience, scope of responsibilities, base salary in
comparison to our other employees and anticipated future contributions. For fiscal 2015, the
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