8-KLeadership ChangesOther Events

DOLLAR TREE, INC. 8-K Report, Executive Changes (Mar 18, 2008)

Filed March 18, 2008For Securities:DLTR

Summary

Dollar Tree, Inc. (DLTR) filed an 8-K on March 18, 2008, detailing executive compensation decisions made by its Compensation Committee on March 12, 2008. The report outlines the base salaries for key named executive officers for fiscal year 2008 and reports on the actual annual bonus payments for fiscal year 2007, which concluded on February 2, 2008. Furthermore, the filing discloses the bonus potential for fiscal year 2008, linking a significant portion to the Company's earnings per share (EPS) performance and the remainder to individual officer goals. The structure of the bonus compensation incentivizes both corporate financial success and individual executive performance. Additionally, the report mentions equity awards granted in March 2007, comprising stock options and restricted stock units, and amendments to stock option exercise terms for both officers and directors, extending the exercise period post-retirement, death, or disability.

Key Highlights

  • 1Fiscal 2008 base salaries were established for key executives, with CEO Bob Sasser earning $850,000.
  • 2Annual bonus payments for fiscal 2007 were awarded, with CEO Bob Sasser receiving $1,005,825.
  • 3Fiscal 2008 bonus potential is structured with 85% tied to the Company's EPS performance and 15% to personal goals.
  • 4Target bonus levels for fiscal 2008 were set at 100% of salary for the CEO, 50% for the COO and Chief Merchandising Officer, and 35% for the VP, Controller.
  • 5Equity awards, including stock options and restricted stock units, were granted to named executive officers in March 2007.
  • 6Amendments were made to outstanding stock option awards for officers and directors to extend the exercise period following retirement, death, or disability.
  • 7The Chairman of the Board, Macon F. Brock, Jr., received a fiscal 2007 bonus payment of $270,840.

Frequently Asked Questions

For fiscal year 2008, the established annual base salaries were: Bob Sasser (President, CEO) at $850,000; Gary M. Philbin (Chief Operations Officer) at $500,000; Robert H. Rudman (Chief Merchandising Officer) at $425,000; and Kathleen E. Mallas (Vice President, Controller) at $175,000.

The fiscal year 2008 bonus structure is primarily based on the Company's financial performance, with 85% of the potential award tied to earnings per share (EPS) goals. The remaining 15% is linked to the executive achieving personal performance goals. Target bonus levels are set as a percentage of base salary for each executive.

The company amended outstanding stock option awards for both officers and directors. These amendments allow options to be exercised for their original 10-year term following the officer's or director's retirement (after age 59.5 with 7 years of service), death, or disability.

Yes, the Compensation Committee authorized the payment of annual cash bonus awards for fiscal year 2007. For instance, CEO Bob Sasser received a bonus of $1,005,825, which exceeded his bonus potential.