Kroger 2014 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2014 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

24
CO M P O N E N T S O F E X E C U T I V E C O M P E N S A T I O N A T K R O G E R
Compensation฀for฀our฀named฀executive฀officers฀is฀comprised฀of฀the฀following:
•฀ Salary;฀
•฀ Performance-Based฀Annual฀Cash฀Bonus฀(annual,฀non-equity฀incentive฀pay);฀
•฀ Performance-Based฀ Long-Term฀ Compensation฀ (long-term,฀ cash฀ and฀ performance฀ unit฀ incentive฀
compensation);฀
•฀ Other฀Equity฀(non-qualified฀stock฀options฀and฀restricted฀stock);฀
•฀ Retirement฀and฀other฀benefits;฀and฀
•฀ Perquisites.฀
SA L A R Y
We฀provide฀our฀named฀executive฀officer’s฀and฀other฀employees฀a฀fixed฀amount฀of฀cash฀compensation,฀
salary,฀for฀their฀work.฀Salaries฀for฀the฀named฀executive฀officers฀(with฀the฀exception฀of฀the฀CEO)฀are฀established฀
each฀year฀by฀the฀Committee,฀in฀consultation฀with฀the฀CEO.฀The฀CEO’s฀salary฀is฀established฀by฀the฀independent฀
directors.฀Salaries฀for฀the฀named฀executive฀officers฀were฀reviewed฀in฀June฀2014.
The฀amount฀of฀each฀named฀executive฀officer’s฀salary฀is฀influenced฀by฀numerous฀factors฀including:
•฀ An฀assessment฀of฀individual฀contribution฀in฀the฀judgment฀of฀the฀CEO฀and฀the฀Committee฀(or,฀in฀the฀case฀
of฀the฀CEO,฀of฀the฀Committee฀and฀the฀rest฀of฀the฀independent฀directors);฀
•฀ Benchmarking฀with฀comparable฀positions฀at฀peer฀group฀companies;฀
•฀ Tenure;฀and฀
•฀ Relationship฀with฀the฀salaries฀of฀other฀executives฀at฀Kroger.฀
The฀ assessment฀of฀individual฀contribution฀is฀based฀ on฀a฀subjective฀determination,฀without฀the฀use฀of฀
performance฀targets,฀in฀the฀following฀areas:
•฀ Leadership;฀
•฀ Contribution฀to฀the฀officer฀group;฀
•฀ Achievement฀of฀established฀objectives,฀to฀the฀extent฀applicable;฀
•฀ Decision-making฀abilities;฀
•฀ Performance฀of฀the฀areas฀or฀groups฀directly฀reporting฀to฀the฀officer;฀
•฀ Increased฀responsibilities;฀
•฀ Strategic฀thinking;฀and฀
•฀ Furtherance฀of฀Kroger’s฀core฀values.฀
The฀ amounts฀ shown฀ below฀ reflect฀ the฀ salaries฀ of฀ the฀ named฀ executive฀ officers฀ effective฀ August฀ 1,฀
following฀the฀annual฀review฀of฀their฀compensation฀in฀June.
Salaries
2012 2013 2014
W.฀Rodney฀McMullen* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 939,600 $ 968,600 $1,144,000
J.฀Michael฀Schlotman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 671,100 $ 704,655 $ 760,000
Michael฀L.฀Ellis**. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — $ 527,360 $ 800,000
Kathleen฀S.฀Barclay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 677,300 $ 700,000 $ 721,000
Mike฀Donnelly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 550,500 $ 567,015 $ 662,900
David฀B.฀Dillon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,330,000 $1,370,000 $1,370,000
*฀ Mr.฀McMullen’s฀salary฀increased฀to฀$1,200,000฀effective฀upon฀his฀appointment฀as฀Chairman฀of฀the฀Board฀
on฀January฀1,฀2015.฀
**฀ Mr.฀Ellis฀first฀became฀a฀named฀executive฀officer฀in฀2013.฀