Big Lots 2015 Annual Report Download - page 48

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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 enhances our
ability to 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. On December 31, 2015, we
froze the accrual of benefits under the Pension Plan and terminated the Supplemental Pension Plan,
and we terminated the Pension Plan on January 31, 2016. 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 2016
In establishing the executive compensation program for fiscal 2016, 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 executive compensation
program when establishing compensation for fiscal 2016. For fiscal 2016, we awarded RSUs and
PSUs. The RSUs 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 the fiscal 2016
service period, the PSU performance targets are based on EPS and ROIC, each of which account for
50% of the performance component of the PSUs.
For fiscal 2016, the Committee recommended, and the outside directors approved, the following
salaries, payout percentages for the target annual incentive award level (with threshold being one-half
of the target payout percentage and maximum being double the target payout percentage) and equity
awards for our named executive officers:
Name
Fiscal 2016
Salary
($)
Fiscal 2016
Target Annual
Incentive Award
Payout Percentage
(%)
Common Shares
Underlying
RSU Award
(#)
Common Shares
Underlying
Target PSU Award
(#)
Mr. Campisi 1,100,000 120 54,735 82,104
Mr. Johnson 580,920 60 13,619 20,430
Ms. Bachmann 741,600 60 17,386 26,080
Mr. Schlonsky 484,100 60 11,349 17,025
Mr. Stein 428,480 50 6,697 10,046
36