Harris Teeter 2011 Annual Report Download - page 89

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2011 Cash Incentive Plan Awards
Name
Threshold
Performance
Metric
Threshold
Incentive
Bonus (% of
Base Salary)
Threshold
Incentive Bonus
($)
Actual Fiscal
2011
Performance
Actual
Incentive
Bonus (% of
Base Salary)
Actual
Incentive
Bonus
($)
Dickson ...... 4%NOPAT
Return on
Beginning
Invested Capital
for the Company
NA(1) — 9.29% NOPAT
Return on
Beginning
Invested Capital
for the
Company
126.96 865,867
Woodlief ..... 4%NOPAT
Return on
Beginning
Invested Capital
for the Company
NA(2) — 9.29% NOPAT
Return on
Beginning
Invested Capital
for the
Company
105.80 499,905
Morganthall . . . 2% Operating
Profit Margin for
Harris Teeter
15(3) 72,300 4.45%
Operating Profit
Margin for
Harris Teeter
76.25 367,525
Jackson ...... 0%NOPAT
Return on
Beginning
Invested Capital
for A&E
NA(4) — 8.21% NOPAT
Return on
Beginning
Invested Capital
for A&E
71.84 235,627
(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.
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. The Company typically provides long-term equity incentive compensation
to its executives through the grant of restricted stock and performance shares pursuant to its shareholder approved
equity incentive plans.
Generally, the Company plans its equity incentive award grant dates well in advance of any actual grant. The
timing of the Company’s regular annual awards coincides with a scheduled meeting of the Board of Directors, which
historically has been the first meeting of the Board of Directors in the new fiscal year. The grant date is established
when the Board of Directors, acting upon the recommendation of the Compensation Committee, approves the grants
and all key terms. Newly hired employees may receive equity incentive awards prior to the annual grant date upon
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