Big Lots 2015 Annual Report Download - page 41

maximum annual incentive award) the projected operating profit in our annual corporate operating
plan. The primary aim of the Committee and other outside directors in setting the corporate
performance goals for fiscal 2015 was to reward the participants in our annual incentive award
program while encouraging strong corporate earnings growth. The Committee and other outside
directors believed the selected goals provided challenging but reasonable levels of performance that
were appropriate in light of our projected corporate operating plan for fiscal 2015 and our objectives to
promote sustained profitability and provide goals that motivate our executives. The relationship
between each of the corporate performance goals and between the corporate performance goals and
our annual corporate operating plan may vary significantly from year to year as a result of specific
circumstances that we expect to face in the coming fiscal year (e.g., year-over-year comparable
performance, general economic factors and performance of the retail sector) that the Committee and
the other outside directors consider when establishing the goals.
The payout percentages for our named executive officers for fiscal 2015 were established at the
discretion of the Committee and other outside directors, subject, in the case of Mr. Campisi and
Ms. Bachmann, to the minimum payout percentages set forth in their respective employment
agreements. Except for Mr. Campisi, the Committee and the other outside directors maintained the
same annual incentive award payout percentages for our named executive officers for fiscal 2015 that
applied for fiscal 2014. This decision was primarily driven by the belief that those annual incentive
award payout percentages were appropriate for fiscal 2015 to accomplish our executive compensation
objectives. Mr. Campisi’s increase was due to the new minimum payout percentages in his
employment agreement.
To calculate the amount of the annual incentive awards earned under the 2006 Bonus Plan, if any, we
first calculate the applicable financial measure for purposes of our financial statements. We then adjust
the measure to eliminate the effect of those events, transactions or accrual items described in the 2006
Bonus Plan. The Committee approves such adjustments at the same time it establishes the corporate
performance goals and annual incentive award payout percentages applicable to the award. These
adjustments may increase or decrease the corporate performance amount achieved. Additionally, the
Committee may exercise negative discretion to cancel or decrease the annual incentive awards earned
(but not increase an annual incentive award for a covered employee, as that term is used in
Section 162(m) of the IRC). Accordingly, the corporate performance amount may differ from the
financial measure amount reported in our financial statements.
The Committee exercised negative discretion to reduce the corporate performance amount achieved for
fiscal 2015 to exclude certain accrual items that would have otherwise increased such amount. The
Committee decided to exclude these accrual items principally because they were anticipated as part of
the annual corporate operating plan upon which the financial measure and corporate performance goals
were established for fiscal 2015, and not because of any corporate or individual performance factors.
The following table sets forth the payout percentage for each performance level, the corporate
performance amount required to achieve the corresponding performance level, and the corporate
performance amount and payout percentage achieved for fiscal 2015 (including the adjustments
described in the preceding paragraph):
Annual Incentive
Award Level and
2015 Results
Payout Percentage
(% of salary) Corporate
Performance
Amount
($)
Mr.
Campisi
Mr.
Johnson
Ms.
Bachmann
Mr.
Schlonsky
Mr.
Stein
Mr.
Chene
No Bonus 0 0 0 0 0 0 0-$227,628,999
Threshold 60 30 30 25 25 30 $ 227,629,000
Target 120 60 60 50 50 60 $ 238,934,000
Maximum 240 120 120 100 100 120 $ 261,326,000
2015 Results 198.97 99.48 99.48 82.90 82.90 56.84 $ 253,669,345
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