Kroger 2014 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 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

45
Equity and Non-equity Incentive Awards
The฀ following฀ table฀ describes฀ the฀ treatment฀ of฀ equity฀ and฀ non-equity฀ incentive฀ awards฀ following฀ a฀
termination฀of฀employment฀or฀change฀in฀control฀of฀Kroger.฀In฀each฀case,฀the฀continued฀vesting,฀exercisability฀
or฀eligibility฀for฀the฀incentive฀awards฀will฀end฀if฀the฀participant฀provides฀services฀to฀a฀competitor฀of฀Kroger.
Triggering Event Stock Options Restricted Stock Performance Units(1) Long-Term Cash Bonus(1)
Involuntary
Termination
Forfeit฀all฀unvested฀
options.฀Previously฀
vested options remain
exercisable฀for฀the฀
shorter of one year
after termination or the
remainder฀of฀the฀10-year฀
term.
Forfeit฀all฀unvested฀shares Forfeit฀all฀rights฀to฀
performance units for
which the three year
performance period has
not ended
Forfeit฀all฀rights฀to฀bonuses฀
for which the three year
performance period has
not ended
Voluntary Termination/
Retirement
Forfeit฀all฀unvested฀
options. Vested options
remain฀exercisable฀for฀
the shorter of one year
after termination or the
remainder฀of฀the฀10-year฀
term.
Forfeit฀all฀unvested฀shares Forfeit฀all฀rights฀to฀
performance units for
which the three year
performance period has
not ended
Forfeit฀all฀rights฀to฀bonuses฀
for which the three year
performance period has
not ended
- Prior to minimum
age and years of
service(2)
Voluntary Termination/
Retirement
Unvested฀options฀
continue vesting on the
original schedule. All
options฀are฀exercisable฀
for remainder of the
original฀10-year฀term.
Forfeit฀all฀unvested฀shares฀
granted฀prior฀to฀2013.฀
Vesting continues on
the original schedule for
awards granted during or
after฀2013.฀
Pro฀rata฀portion฀of฀
units฀earned฀based฀on฀
performance results over
the฀full฀three-year฀period฀
Pro฀rata฀portion฀of฀
bonus฀earned฀based฀on฀
performance results over the
full฀three-year฀period฀
- After minimum
age and years of
service(2)
Death
Unvested฀options฀are฀
immediately vested and
exercisable.฀All฀options฀
are฀exercisable฀for฀
remainder of the original
10-year฀term.
Unvested฀shares฀
immediately vest
Pro฀rata฀portion฀of฀
units฀earned฀based฀on฀
performance results
through the end of the
fiscal year in which death
occurs. The performance
period is shortened to
end on the last day of
such fiscal year.
Pro฀rata฀portion฀of฀
bonus฀earned฀based฀on฀
performance results through
the end of the fiscal year
in which death occurs.
The performance period is
shortened to end on the last
day of such fiscal year.
Disability
Unvested฀options฀are฀
immediately vested and
exercisable.฀All฀options฀
are฀exercisable฀for฀
remainder of the original
10-year฀term.
Unvested฀shares฀
immediately vest
Pro฀rata฀portion฀of฀
units฀earned฀based฀on฀
performance results over
the฀full฀three-year฀period฀
Pro฀rata฀portion฀of฀
bonus฀earned฀based฀on฀
performance results over the
full฀three-year฀period
Change in Control(3)
Unvested฀options฀are฀
immediately vested and
exercisable฀in฀full.
Unvested฀shares฀
immediately vest
50%฀of฀the฀maximum฀
award granted at
the฀beginning฀of฀the฀
performance period
50%฀of฀the฀maximum฀award฀
granted฀at฀the฀beginning฀of฀
the performance period
(1)฀ The฀prorated฀amount฀is฀equal฀to฀the฀number฀of฀weeks฀of฀active฀employment฀during฀the฀performance฀
period฀divided฀by฀the฀total฀number฀of฀weeks฀in฀the฀performance฀period.฀
(2)฀ The฀minimum฀service฀requirement฀for฀all฀awards฀is฀5฀years.฀The฀minimum฀age฀requirement฀is฀age฀62฀for฀
stock฀options฀and฀restricted฀stock฀and฀age฀55฀for฀performance฀units฀and฀the฀long-term฀cash฀bonus.
(3)฀฀ These฀ benefits฀ are฀ payable฀ upon฀ a฀ change฀ in฀ control฀ of฀ Kroger฀ with฀ or฀ without฀ a฀ termination฀
of employment.