Harris Teeter 2010 Annual Report Download - page 101

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2010 Cash Incentive Plan Awards
Name
Threshold
Performance
Metric
Threshold
Incentive
Bonus (% of
Base Salary)
Threshold
Incentive Bonus
(in dollars)
Actual Fiscal
2010
Performance
Actual
Incentive
Bonus (% of
Base Salary)
Actual
Incentive
Bonus
(in dollars)
Dickson ..... 4%NOPAT
Return on
Beginning
Invested Capital
for the Company
NA (1) — 8.45% NOPAT
Return on
Beginning
Invested
Capital for the
Company
106.80 662,160
Woodlief ..... 4%NOPAT
Return on
Beginning
Invested Capital
for the Company
NA (2) — 8.45% NOPAT
Return on
Beginning
Invested
Capital for the
Company
89.00 387,150
Morganthall . . . 2% Operating
Profit Margin for
Harris Teeter
15 (3) 67,875 4.42%
Operating
Profit Margin
for Harris
Teeter
75.50 341,638
Jackson ...... 0%NOPAT
Return on
Beginning
Invested Capital
for A&E
NA (4) — 6.29% NOPAT
Return on
Beginning
Invested
Capital for
A&E
55.04 162,361
(1) An Incentive Bonus of 24% of his base salary would be earned by Mr. Dickson for each 1% NOPAT return
on beginning invested capital for the Company above 4%. Increments of less than 1% would be calculated
on a pro rata basis.
(2) An Incentive Bonus of 20% of his base salary would be earned by Mr. Woodlief for each 1% NOPAT return
on beginning invested capital for the Company above 4%. Increments of less than 1% would be calculated
on a pro rata basis.
(3) An Incentive Bonus of 15% of his base salary would be earned by Mr. Morganthall upon the achievement
of a 2.0% operating profit margin for Harris Teeter, and an additional Incentive Bonus of 2.5% of his base
salary would be earned for each 0.1% operating profit margin over 2.0% for Harris Teeter. Increments of less
than 0.1% would be calculated on a pro rata basis.
(4) An Incentive Bonus of 8.75% of his base salary would be earned by Mr. Jackson for each 1% NOPAT return on
beginning invested capital for A&E above 0%. Increments of less than 1% would be calculated on a pro rata basis.
In addition to the Incentive Bonuses payable under the Cash Incentive Plan as described above, in Fiscal 2010
the Compensation Committee awarded a discretionary bonus to Mr. Jackson in the amount of $29,500, which equals
ten percent of Mr. Jackson’s base salary. The Compensation Committee determined to award this discretionary bonus
in order to match the discretionary increase in bonuses provided to other A&E employees under A&E’s broad-based
bonus plan, in which plan NEOs do not participate, equal to an additional 10 percentage points for each tier. Those
discretionary bonuses provided to such other A&E employees were granted by the Board of Directors of A&E on
account of A&E’s operating profit achievement.
Long-Term Equity Incentive Compensation. The Company’s executive compensation program is intended to
provide executives – who have significant responsibility for the management, growth and future success of the
Company – with an opportunity to increase their ownership in the Company and thereby gain from any long-term
appreciation in the Company’s stock. Historically, the Company provided long-term equity incentive compensation
23