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49
(6)฀ Aggregate฀number฀of฀stock฀options฀outstanding฀at฀fiscal฀year฀end฀was฀37,500฀shares.
(7)฀ Aggregate฀number฀of฀stock฀options฀outstanding฀at฀fiscal฀year฀end฀was฀46,500฀shares.
(8)฀ Aggregate฀number฀of฀stock฀options฀outstanding฀at฀fiscal฀year฀end฀was฀42,500฀shares.
(9)฀ Aggregate฀number฀of฀stock฀options฀outstanding฀at฀fiscal฀year฀end฀was฀19,500฀shares.
(10)฀ This฀amount฀reflects฀the฀change฀in฀pension฀value฀for฀Messrs.฀Anderson฀and฀Moore.฀Only฀those฀directors฀
elected฀to฀the฀Board฀prior฀to฀July฀17,฀1997฀are฀eligible฀to฀participate฀in฀the฀outside฀director฀retirement฀plan.
(11)฀ This฀ amount฀ reflects฀ preferential฀ earnings฀ on฀ nonqualified฀ deferred฀ compensation.฀ For฀ a฀ complete฀
explanation฀of฀preferential฀earnings,฀please฀refer฀to฀footnote฀5฀to฀the฀Summary฀Compensation฀Table.
Each฀ non-employee฀ director฀ receives฀ an฀ annual฀ retainer฀ of฀ $85,000.฀ The฀ chairs฀ of฀ each฀ of฀ the฀ Audit฀
Committee฀ and฀the฀ Compensation฀ Committee฀receive฀an฀ additional฀annual฀ retainer฀of฀$20,000.฀The฀ chair฀
of฀ each฀ of฀ the฀ other฀ committees฀ receives฀ an฀ additional฀ annual฀ retainer฀ of฀ $15,000.฀ Each฀ member฀ of฀ the฀
Audit฀ Committee฀ receives฀ an฀ additional฀ annual฀ retainer฀ of฀ $10,000.฀ The฀ director฀ designated฀ as฀ the฀ Lead฀
Director฀receives฀an฀additional฀annual฀retainer฀of฀$25,000.฀Beginning฀in฀2013,฀incentive฀shares฀were฀issued฀
to฀ non-employee฀ directors฀ in฀ lieu฀ of฀ options฀ and฀ restricted฀ stock,฀ as฀ a฀ portion฀ of฀ the฀ directors’฀ overall฀
compensation.฀On฀July฀15,฀2014,฀each฀non-employee฀director,฀except฀for฀Ms.฀Aufreiter฀and฀Messrs.฀Anderson฀
and฀ Rogel,฀ received฀ 3,350฀ common฀ shares.฀ On฀ July฀ 15,฀ 2014,฀ Messrs.฀ Anderson฀ and฀ Rogel฀ received฀ 1,367฀
common shares, which represents a prorated portion of the annual grant as a result of their planned retirement.
Ms.฀Aufreiter฀received฀1,578฀common฀shares฀on฀December฀11,฀2014฀upon฀joining฀the฀Board.
Non-employee฀directors฀first฀elected฀prior฀to฀July฀17,฀1997฀receive฀an฀unfunded฀retirement฀benefit฀equal฀
to฀the฀average฀cash฀compensation฀for฀the฀five฀calendar฀years฀preceding฀retirement.฀Only฀Messrs.฀Anderson฀
and฀Moore฀are฀eligible฀for฀this฀benefit.฀Participants฀who฀retire฀from฀the฀Board฀prior฀to฀age฀70฀will฀be฀credited฀
with฀ 50%฀vesting฀after฀five฀ years฀of฀service,฀and฀10%฀ for฀each฀additional฀year฀ up฀to฀a฀maximum฀of฀100%.฀
Benefits฀for฀participants฀who฀retire฀prior฀to฀age฀70฀begin฀at฀the฀later฀of฀actual฀retirement฀or฀age฀65.฀Because฀
Mr.฀Anderson฀retired฀after฀reaching฀age฀70,฀he฀will฀receive฀the฀full฀annual฀benefit฀of฀$75,833,฀which฀will฀be฀
paid฀on฀a฀monthly฀basis.฀
We฀ also฀ maintain฀ a฀ deferred฀ compensation฀ plan,฀ in฀ which฀ all฀ non-employee฀ directors฀ are฀ eligible฀ to฀
participate.฀Participants฀may฀defer฀up฀to฀100%฀of฀their฀cash฀compensation.฀They฀may฀elect฀from฀either฀or฀both฀
of฀the฀following฀two฀alternative฀methods฀of฀determining฀benefits:
•฀ interest฀accrues฀until฀paid฀out฀at฀the฀rate฀of฀interest฀determined฀prior฀to฀the฀beginning฀of฀the฀deferral฀
year฀to฀represent฀Kroger’s฀cost฀of฀ten-year฀debt;฀and/or฀
•฀ amounts฀are฀credited฀in฀“phantom”฀stock฀accounts฀and฀the฀amounts฀in฀those฀accounts฀fluctuate฀with฀the฀
price฀of฀Kroger฀common฀shares.฀
In฀ both฀cases,฀deferred฀amounts฀are฀ paid฀out฀only฀in฀cash,฀based฀on฀deferral฀options฀selected฀by฀the฀
participant฀at฀the฀time฀the฀deferral฀elections฀are฀made.฀Participants฀can฀elect฀to฀have฀distributions฀made฀in฀
a฀lump฀ sum฀ or฀in฀quarterly฀installments,฀and฀ may฀make฀comparable฀ elections฀ for฀designated฀ beneficiaries฀
who฀receive฀benefits฀in฀the฀event฀that฀deferred฀compensation฀is฀not฀completely฀paid฀out฀upon฀the฀death฀of฀
the participant.
The฀ Board฀ has฀ determined฀ that฀ compensation฀ of฀ non-employee฀ directors฀ must฀ be฀ competitive฀ on฀
an฀ on-going฀ basis฀ to฀ attract฀ and฀ retain฀ directors฀ who฀ meet฀ the฀ qualifications฀ for฀ service฀ on฀ the฀ Board.฀
Non-employee฀ director฀ compensation฀ will฀ be฀ reviewed฀ from฀ time฀ to฀ time฀ as฀ the฀ Corporate฀ Governance฀
Committee฀deems฀appropriate.