The Kroger Co.'s 13 percent earnings boost in 2006 bade well
for CEO David Dillon who took home almost $7.5 million in
cash and stock options, a $1.4 million raise from 2005.
Dillon received $3.4 million in salary, bonuses and other
compensation and almost $4.1 million in restricted shares
and stock options, according to a U.S. Securities and
Exchange Commission proxy statement issued Wednesday. In
2005, his pay topped $6 million, including stock options on
300,000 shares valued at $3.1 million.
The bonus payout, equal to 141.1 percent of Dillon's
bonus potential of $1.5 million, was based on goals related
to identical sales, EBITDA, and the implementation and
results of the company's strategic plan and capital
improvement projects. His bonus equaled $2.1 million, up
from $1.9 million in 2005.
In addition, Dillon exercised 30,000 stock options in
2006, realizing close to $250,000.
Dillon's higher pay is no surprise based on Kroger's
performance measures in 2006. The company beat estimates on
identical sales growth minus fuel, hitting 5.6 percent
compared to 3.5 percent, and earnings-per-share growth,
hitting 15 percent instead of 8-10 percent. Sales increased
7 percent in 2006 and the company gained market share in its
44 major markets by 65 basis points, weighted on volume.
Kroger will detail its results at its annual meeting for
shareholders, planned for June 28 at downtown Cincinnati's
Music Hall ballroom. Shareholders will also have the
opportunity to vote on five proposals including the election
of directors, a new cash bonus plan for executives based on
long-term fiscal performance, rules of conduct for
shareholder meetings outside Cincinnati, the selection of
auditors and a shareholder request to assess the company's
activities related to climate change.
Kroger stock (NYSE:
KR -
News) traded
up 30 cents Wednesday afternoon to $29.74 per share.
The Cincinnati-based grocer operates more than 2,500
supermarkets and multi-department stores in 31 states.
Published May 2, 2007 by the Cincinnati Business
Courier