8-KMaterial AgreementsExhibits & Filings

DOLLAR TREE, INC. 8-K Report, Material Agreement (Mar 24, 2005)

Filed March 24, 2005For Securities:DLTR

Summary

This Form 8-K filing by Dollar Tree Stores, Inc. (DLTR) on March 24, 2005, primarily details changes and approvals related to executive compensation. The Compensation Committee of the Board of Directors has approved new annual base salaries for key executives, effective April 1, 2005, with significant increases for the CEO and CFO. Additionally, the committee authorized fiscal year 2004 cash bonus payments and established performance goals and bonus potentials for fiscal year 2005, heavily weighted towards earnings per share (EPS) performance. The filing also reports the grant of restricted stock units (RSUs) to the CEO and CFO, contingent on continued employment and the achievement of specific EPS targets in fiscal year 2005. These compensation adjustments and equity grants underscore the company's focus on aligning executive incentives with corporate financial performance, particularly EPS growth, as it moves into the new fiscal year.

Key Highlights

  • 1Effective April 1, 2005, new annual base salaries were approved for executive officers, including increases for the CEO ($700,000) and CFO ($415,000).
  • 2Fiscal year 2004 cash bonuses were authorized for named executive officers, with the CEO receiving $201,000 and the Chairman receiving $128,200.
  • 3Fiscal year 2005 bonus potential is established, with 85% tied to company EPS performance and 15% to individual performance goals.
  • 4The CEO was granted 30,000 restricted stock units and the CFO was granted 10,000 restricted stock units.
  • 5Vesting of restricted stock units is subject to continued employment and the achievement of target EPS in fiscal year 2005.
  • 6Kent Kleeberger has been appointed Chief Financial Officer, replacing Frederick C. Coble.
  • 7The compensation adjustments and equity grants are governed by shareholder-approved plans, including the Executive Officer Cash Bonus Plan and the Executive Officer Equity Plan.

Frequently Asked Questions

The filing details the approval of new annual base salaries for key executives effective April 1, 2005, and the authorization of fiscal year 2004 cash bonuses. It also outlines the structure for fiscal year 2005 bonuses, emphasizing performance metrics, and reports the grant of restricted stock units to the CEO and CFO.

For fiscal year 2005, 85% of the potential cash bonus award is based on the company's achievement of its earnings per share (EPS) goal, while the remaining 15% is tied to the executive achieving personal performance goals. The potential bonus can be exceeded if the company surpasses its EPS target.

The restricted stock units granted to the CEO and CFO are a form of equity compensation. Their vesting is contingent upon the executives remaining with the company for a specified period and the company achieving a target level of earnings per share in fiscal year 2005, aligning executive incentives with long-term company performance and shareholder value.

Yes, the filing indicates that Kent Kleeberger has replaced Frederick C. Coble as the Chief Financial Officer and his new base salary and bonus compensation have been detailed.