Non executive directors on Safeways board received an annual retainer of 125000

Non executive directors on safeways board received an

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Non-executive directors on Safeway’s board received an annual retainer of $125,000. The lead independent director and chairs of the audit and strategic initiative committees received an additional $25,000 annual payment. Other members of the audit and strategic initiative committees received an additional $15,000. The chairs of the executive compensation committee and nominating and corporate governance committees also received an additional $15,000, and other members of these committees received an additional $10,000. Each member of the executive committee received (excluding Burd) an additional $15,000. Fifty percent of the fees that Exhibit 4 Safeway: Selected Financial Information(in millions, except per share)199320022003200420052006Revenues$15,215$34,917$35,727$35,823$38,416$40,185Operating Income4419485741,1731,2151,600Net Income123(828)(170)560561871Debt$2,689$8,436$7,822$6,763$6,359$5,868Shareholders Equity3833,6283,6444,3074,9205,667Earnings Per Share$0.25$(1.77)$(0.38)$1.25$1.25$1.94Dividends Per Share0.150.2225Ending Share Price$4$23$22$20$24$35Average Diluted Shares492467442449450448Market Value Equity$1,968$10,741$9,724$8,980$10,800$15,680Enterprise Value4,65719,17717,54615,74317,15921,548Store Count1,0781,8081,8171,8021,7751,761Same Store Sales2.1%(2.4%)(4.5%)(1.3%)4.3%3.3%Gross Margin Percentage27.2%31.5%30.0%29.6%28.7%28.8%Notes: Fiscal year ends December 31. Per share data and share count information adjusted for splits (4-for-1).Source: Safeway Inc., forms 10-K, filed with the Securities and Exchange Commission. Share price information from Center for Research in Securities Prices (University of Chicago).CHE-HITT-09-0102-Case-013.indd 176CHE-HITT-09-0102-Case-013.indd 17611/13/09 7:42:05 PM11/13/09 7:42:05 PM
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Case 13: Attention Shoppers: Executive Compensation at Kroger, Safeway, Costco, and Whole Foods177Exhibit 5 Safeway: Compensation and Related InformationCompensation for Chief Executive Officer and Other Named ExecutivesBase SalaryBonusStock AwardsOption AwardsChange in Pension/Deferred Comp.OtherTotalSteven Burd Chairman & CEO2006$1,332,250$2,639,825$208,725$1,978,553$632,342$212,298$7,003,99320051,300,0001,951,0007,697,655NA283,00011,231,65520041,144,0001,146,000NA2,290,00020031,000,000NA1,000,00020021,000,000258,000NA1,258,000Named Officers (2006)CFO590,928730,505570,2141,066,44578,7953,036,887CMO (Marketing)691,425854,7391,208,7142,192,33693,75111,4125,052,377Chief Strategist622,877770,000555,3041,049,61910,0003,007,800Retail Operations593,154733,256555,304916,649247,8333,046,196Options valued using Black-Scholes pricing model. In 2006, the assumptions were expected volatility 27.1 percent, risk-free rate 4.43 percent, dividend yield 0.8 percent, and average term 4.5 years.Chief Executive Officer: Stock Option ExercisesYearShares AcquiredValue RealizedExercisable OptionsUnexercisable OptionsValue ExercisableValue Unexercisable200614,430$187,2155,585,8331,852,334$72,600,952$25,428,794200522,862285,3535,394,4301,029,16745,652,8745,711,87720041,150,00017,179,7754,897,292520,00037,366,1252003850,00013,041,0805,467,2921,100,00058,581,3752002264,97010,968,1225,737,2921,680,00076,752,557a director received were automatically deferred into stock units that were equivalent in value to Safeway common stock. At their discretion, directors were also allowed to defer the remaining 50 percent. Finally, new directors received a stock option grant of 20,000 shares (see Exhibit 5for compensation figures for Burd, other named executives at Safeway, and Safeway board members).
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