Dollar General 2006 Annual Report Download - page 123

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What benefits and perquisites are available to NEOs?
We provide benefits and limited perquisites to NEOs for retention and recruiting
purposes, to promote tax efficiency for the NEOs, and to replace benefit opportunities lost due to
regulatory limits. We also provide NEOs with these benefits and perquisites as additional forms
of compensation that are believed to be consistent and competitive with benefits and perquisites
provided to similar positions in the market comparator group and general industry. The
Committee believes these benefits and perquisites are consistent with the compensation
objectives described above as they help to attract and retain NEOs.
In addition to certain benefits offered to NEOs on the same terms that are offered to the
salaried employee population (such as our 401(k) match and health and welfare plans), we
provide NEOs the benefits and perquisites specified below.
We offer to certain key employees (including our NEOs except our CEO), the
Compensation Deferral Plan (the “CDP”) and the defined contribution Supplemental Executive
Retirement Plan (the “SERP” and together with the CDP, the “CDP/SERP Plan”). Our CEO,
Mr. Perdue, is eligible to participate in the CDP but not the SERP. We discuss in detail the
CDP/SERP Plan after the Nonqualified Deferred Compensation Table set forth in this report.
We provide each NEO with a life insurance benefit equal to 2.5 times his or her base
salary to a maximum of $3,000,000. We pay the premiums and gross up the NEO’ s income to
pay the tax cost of this benefit. We also provide NEOs with a disability insurance benefit that
provides income replacement of 60% of base salary to a maximum monthly benefit of $20,000
($25,000 for the CEO). We pay the cost of this benefit and gross up the NEO’ s income to pay
the tax cost of this benefit to the extent necessary to replace benefit level caps in the group plan
applicable to all salaried employees.
Further, we provide each NEO with a choice of either a leased automobile or a fixed
monthly automobile allowance. All of the NEOs except Ms. Lowe chose the automobile
allowance option. Under the leased option, we provided Ms. Lowe with a company-leased
automobile, and paid for her gasoline, repairs, service, and insurance and provided a gross-up
payment to pay the tax cost of the imputed income. The incremental costs we incurred related to
these benefits in fiscal 2006 are reported in the “All Other Compensation” column of the
Summary Compensation Table set forth in this report.
We also provide a relocation assistance program to NEOs similar to that offered to
certain other employees. The significant differences from the relocation assistance provided to
other employees are as follows:
• We provide a pre-move allowance of 5% of the NEO’ s annual base salary (we cap
this allowance at $5,000 for other employees);
• We provide home sale assistance by offering to purchase the NEO’ s prior home at an
independently determined appraised value in the event the prior home is not sold to
an outside buyer (we do not offer this service to other employees); and
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