Big Lots 2015 Annual Report Download - page 40

Committee approved the following salaries for the named executive officers, which became effective
March 29, 2015:
Name
Fiscal 2015
Salary
($)
Mr. Campisi $1,050,000
Mr. Johnson $ 535,500
Ms. Bachmann $ 685,000
Mr. Schlonsky $ 435,000
Mr. Stein $ 416,000
Mr. Chene $ 525,000
On August 27, 2015, Mr. Johnson was promoted to Executive Vice President, Chief Administrative
Officer and Chief Financial Officer; Ms. Bachmann was promoted to Executive Vice President, Chief
Merchandising and Operating Officer; and Mr. Schlonsky was promoted to Executive Vice President,
Human Resources and Store Operations. In connection with their promotions and to reflect the
increased responsibilities of their new positions, Mr. Johnson’s salary was increased to $564,000;
Ms. Bachmann’s salary was increased to $720,000; and Mr. Schlonsky’s salary was increased to
$470,000.
Annual Incentive Award for Fiscal 2015
Each named executive officer has the opportunity to earn an annual incentive award under the 2006
Bonus Plan. We design our annual incentive awards to retain, motivate and reward executives on a
year-to-year basis. Annual incentive award payouts correspond to a percentage of each named
executive officer’s salary (“payout percentage”) and are based on whether we achieve certain
corporate performance goals under one or more financial measures established by the Committee
when achievement of the goal is substantially uncertain. The corporate performance goals and
financial measures are set annually at the discretion of the Committee and the other outside directors
in connection with the Board’s approval of our annual corporate operating plan, subject to the terms of
the 2006 Bonus Plan and, in the case of Mr. Campisi and Ms. Bachmann, their respective employment
agreements.
The lowest level at which we will pay an annual incentive award under the 2006 Bonus Plan is referred
to as the “threshold.” The level at which we generally plan our performance and the associated payout
under the 2006 Bonus Plan is referred to as the “target.” The maximum level at which we will pay an
annual incentive award under the 2006 Bonus Plan is referred to as the “maximum.” If our performance
in a fiscal year exceeds the threshold corporate performance goal that earns a threshold bonus, there
is a corresponding increase in the amount of the annual incentive award (up to the maximum bonus
level). Conversely, if we do not meet the threshold corporate performance goal, executives do not
receive an annual incentive award. We believe that our annual incentive awards support our pay-for-
performance philosophy and directly link the interests of our named executive officers with those of our
shareholders. See the “Bonus and Equity Plans” discussion following the Summary Compensation
Table for more information regarding our annual incentive awards.
During their annual review of executive compensation in March 2015, the Committee and other outside
directors approved the financial measure, corporate performance goals and payout percentages for the
fiscal 2015 annual incentive awards. The Committee and the other outside directors selected operating
profit as the financial measure for the fiscal 2015 annual incentive awards because they believe it is a
strong indicator of our operating results and financial condition. The Committee and other outside
directors selected the corporate performance goals based on the annual corporate operating plan
established by the Board. The corporate performance goals were set at an acceptable minimum (for
the threshold annual incentive award), at (for the target annual incentive award), and above (for the
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