Dollar General 2006 Annual Report Download - page 117

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improvement, inventory management, distribution and capacity management, new concept
development, leadership development, succession planning, diversity, employee benefits,
turnover reduction and retention strategies, workplace improvements, customer satisfaction,
technology improvements, internal controls, legal and regulatory compliance, and expense
control.
For each NEO, the Committee approved the following base salary adjustments during
fiscal 2006:
• Chairman and Chief Executive Officer, David A. Perdue: (see separate CEO
compensation section below).
• Executive Vice President and Chief Financial Officer, David M. Tehle: The
Committee reviewed with Mr. Perdue the objectives for Mr. Tehle, which included
driving analysis and financial disciplines in the organization to drive value for the
business. The Committee was satisfied with Mr. Perdue’ s evaluation of Mr. Tehle’ s
performance, deeming his performance to be satisfactory against his previously
established goals and strategic initiatives, and, in accordance with base salary and
short-term incentive policies, Mr. Tehle was eligible in 2006 for both a base salary
increase and participation in the short-term incentive plan to the extent that we
achieved our financial goals. However, Mr. Tehle did not receive a base salary
increase in 2006 because the Committee had recently granted him a significant base
salary increase of 22.1% effective December 2005, raising his base salary from
$475,000 to $580,000. That increase resulted from a review of all NEO
compensation which occurred in conjunction with the hiring of a new NEO. It was
determined that Mr. Tehle’s salary was low in relation to the salary of the new NEO,
given Mr. Tehle’ s role and impact on the organization. The December 2005 salary
increase was one of two special increases granted to NEOs in 2005 resulting from the
special compensation review (the other was to Kathleen R. Guion, discussed below).
• Division President, Store Operations and Store Development, Kathleen R. Guion:
The Committee reviewed with Mr. Perdue the objectives for Ms. Guion, which
included driving results in store operations and store development, including the
implementation of the major “EZstore” corporate initiative. The Committee was
satisfied with Mr. Perdue’ s evaluation of Ms. Guion’ s performance, deeming her
performance to be satisfactory against her previously established goals and strategic
initiatives, and, in accordance with base salary and short-term incentive policies, Ms.
Guion was eligible in 2006 for both a salary increase and participation in the short-
term incentive plan to the extent that we achieved our financial goals. However, Ms.
Guion did not receive a base salary increase in 2006 because the Committee had
recently granted her a significant base salary increase of 17.6% effective December
2005, raising her base salary from $425,000 to $500,000 for the same reasons noted
above with respect to Mr. Tehle’ s base salary increase.
• Division President, Merchandising, Marketing & Supply Chain, Beryl J. Buley: Mr.
Buley was hired on December 1, 2005, and therefore was not considered for a base
salary increase in 2006.
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