Harris Teeter 2011 Annual Report Download - page 87

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$19.5 million). The Fiscal 2010 performance objectives for Mr. Dickson included: on a consolidated
Company basis, selling the Company’s equity share in a foreign investment company; at Harris Teeter,
opening 13 new stores and completing 2 major store remodelings, achieving a variety of specific
productivity, cost savings and operational goals and achieving positive same store sales of 0.5%; and at
A&E, increasing global market share and integration of recent acquisitions and consolidations at A&E.
During Fiscal 2010, the Company sold its interest in the foreign investment company; Harris Teeter
opened 13 new stores, and completed the major remodeling of 2 stores, and achieved productivity, cost
savings and operational goals, but did not achieve the stated positive same store sales goals at Harris
Teeter; and A&E increased global market share and made progress on the growth and integration of recent
acquisitions and consolidations.
•For Mr. Woodlief, the Fiscal 2010 target corporate operating results were achieving sales at Harris Teeter
of $4.11 billion (actual $4.10 billion) and operating profit of $164.5 million (actual $181.6 million), and
sales at A&E of $251 million (actual $301.1 million) and operating profit of $3.95 million (actual $19.5
million). The Fiscal 2010 performance objectives for Mr. Woodlief included selling the Company’s equity
share in the foreign investment company, developing, overseeing and improving banking relationships,
investor relations, financial planning, risk management practices, employee and executive benefit
programs, investment banking relationships, accounting and financial controls in an effective and cost-
efficient manner at both corporate and subsidiary levels, designing and maintaining corporate governance
and compliance programs, and effectively coordinating with the audit committee and the outside auditors.
•For Mr. Morganthall, the Fiscal 2010 target corporate operating results were achieving sales at Harris
Teeter of $4.11 billion (actual $4.10 billion) and operating profit of $164.5 million (actual $181.6 million).
The Fiscal 2010 performance objectives for Mr. Morganthall included opening 13 new stores and
completing 2 major store remodelings at Harris Teeter, achieving positive same store sales of 0.5%, and
identifying cost savings in product cost and operating and corporate costs at Harris Teeter. During Fiscal
2010, Harris Teeter opened 13 new stores and closed 3 stores, and completed the major remodeling of
2 stores, and made progress toward identifying cost savings. However, Harris Teeter did not achieve the
stated positive same store sales goal.
•For Mr. Jackson, the Fiscal 2010 target corporate operating results were achieving sales at A&E of $251
million (actual $301.1 million) and operating profit of $3.95 million (actual $19.5 million). The Fiscal
2010 performance objectives for Mr. Jackson included achieving profitability in the U.S. through
continued cost reductions, and expanding market share and profitability in China and India. In Fiscal 2010,
A&E achieved those performance objectives.
2011 Base Salary Adjustment
Name
Fiscal 2010
Base Salary ($)
Fiscal 2011
Base Salary ($) Increase ($) Increase (%)
Dickson ............................... 620,000 682,000 62,000 10.0
Woodlief .............................. 435,000 472,500 37,500 8.6
Morganthall ............................ 452,500 482,000 29,500 6.5
Jackson ............................... 295,000 328,000 33,000 11.2
Annual cash incentive plan awards (“Incentive Bonuses”) are provided to the NEOs through the Ruddick
Corporation Cash Incentive Plan (the “Cash Incentive Plan”), which was approved by the shareholders at the Annual
Meeting of Shareholders held on February 15, 2007. Awards under the Cash Incentive Plan link incentive pay to
achievement of predetermined, objective performance goals. The Compensation Committee awards potential
Incentive Bonuses to the NEOs based upon each such NEO’s level of responsibility within the Company or at the
operating subsidiary, and the attainment of that potential compensation is based upon the performance of the
Company or such operating subsidiary. In particular, the Compensation Committee has set forth performance
metrics for the Company, Harris Teeter and A&E based on information which the Compensation Committee deems
most important to determining the performance of such entities. The footnotes to the 2011 Cash Incentive Plan
21