8-KLeadership Changes

DOLLAR TREE, INC. 8-K Report, Executive Changes (Mar 22, 2011)

Filed March 22, 2011For Securities:DLTR

Summary

This 8-K filing from Dollar Tree, Inc. (DLTR) on March 22, 2011, details executive compensation decisions made by the Compensation Committee on March 16, 2011. Key updates include the approval of base salaries for fiscal year 2011 and the determination of bonus payments for fiscal year 2010, along with bonus targets for fiscal year 2011. The filing also outlines equity awards, specifically restricted stock units, granted for both prior year performance (fiscal 2010) and current year grants (effective April 1, 2011), with vesting contingent on continued employment and company performance. Investors can take note of the base salary adjustments, the significant bonus payouts for fiscal 2010, and the forward-looking equity awards tied to both individual and corporate performance metrics. The company's commitment to performance-based compensation is evident, with a clear link between executive rewards and the achievement of company goals, including earnings per share targets and corporate performance achievements for fiscal 2011.

Key Highlights

  • 1Dollar Tree, Inc. Compensation Committee reviewed and approved executive base salaries for fiscal 2011, with CEO Bob Sasser receiving $1,100,000.
  • 2Fiscal year 2010 bonuses were authorized and paid out to Named Executive Officers under approved bonus plans.
  • 3Target bonus levels for fiscal 2011 were set, with the CEO targeted at 120% of salary and other key officers at 70%, based on corporate and personal performance.
  • 4Performance requirements for fiscal 2010 restricted stock units were met, resulting in equity grants for all Named Executive Officers, vesting over three years.
  • 5Performance-based restricted stock units for fiscal 2011 were approved with a total dollar value of $3,000,000 for CEO Bob Sasser and significant amounts for other officers.
  • 6These fiscal 2011 equity awards are contingent on achieving a specified corporate performance goal for the fiscal year and vest over three years.

Frequently Asked Questions

For fiscal year 2011, the approved annual base salaries are: Bob Sasser (President, CEO) - $1,100,000; Gary M. Philbin (COO) - $625,000; Kevin S. Wampler (CFO) - $470,000; Robert H. Rudman (Chief Merchandising Officer) - $540,000; and James Fothergill (Chief People Officer) - $365,000.

Bonuses are awarded under the Company's 2004 Executive Officer Cash Bonus Plan and Management Incentive Compensation Plan. For fiscal 2010, cash bonuses were paid out. For fiscal 2011, target bonus levels were set at 120% of salary for the CEO and 70% for other key officers. These bonuses are based 85% on corporate performance and 15% on personal performance goals.

Yes, performance-based restricted stock units were granted. In March 2011, executives received awards for meeting fiscal 2010 EPS targets, vesting over three years. Additionally, new performance-based restricted stock units were approved, effective April 1, 2011, with significant dollar values assigned to each executive. These new awards will vest over three years and are contingent on the company achieving a specific corporate performance goal in fiscal 2011.

The 3-for-2 stock split that took effect on June 24, 2010, means that the number of restricted stock units granted for fiscal year 2010 performance has been adjusted to reflect this split, ensuring that the reported unit amounts accurately represent the post-split share count.