Best Buy 2010 Annual Report Download - page 40

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shareholder value by using stock options rather than Additional information regarding LTIP awards granted to
restricted stock as our long-term executive officer the named executive officers in fiscal 2010 is included
incentive vehicle because of the potential for a great in Grants of Plan-Based Awards on page 52.
reward and the potential for no reward. Individual Recognition Restricted Stock Award. From
The stock options awarded pursuant to our LTIP to the time to time, we grant individual restricted stock awards
eligible continuing named executive officers in fiscal to recognize superior performance. In May 2009,
2010 and fiscal 2009 are shown below: Mr. Willett received the following retention awards,
which were granted at a time of CEO transition and
Fiscal Fiscal after he had reached retirement age: (1) 25,000 shares
2010 2009
(number of (number of of restricted stock, with vesting to occur three years after
shares shares
subject to subject to Percent the date of grant, and (2) as further incentive to drive
Name options) options) Change operating income by delivering exceptional international
Mr. Dunn(1)(2) 200,000 138,000 +45% results, 50,000 shares of performance-based restricted
Mr. Muehlbauer 80,000 80,000 0% stock, with vesting based on the achievement of certain
Ms. Ballard 66,251 66,250 0% performance factors. He forfeited both awards when he
Mr. Vitelli(2) 66,251 40,000 +66% retired because they had not yet vested. Additional
information about the grants is included in Grants of
(1) Mr. Dunn received his fiscal 2010 LTIP award in full on
June 23, 2009, rather than in three installments. In fiscal Plan-Based Awards on page 52.
2011, we intend to grant Mr. Dunn quarterly LTIP awards,
consistent with our grant schedule for eligible employees. Special Circumstances. During fiscal 2010, special
(2) Messrs. Dunn and Vitelli received an increase in their circumstances or events arose which resulted in the
2010 LTIP awards due to their changes in role during the unique compensation arrangements for the individuals
fiscal year. named below.
Mr. Wheway did not receive a LTIP award in fiscal Mr. Dunn. In June 2009, Mr. Dunn received options to
2010. After his change in role to Chief Executive purchase 300,000 shares as a special grant because of
Officer — Best Buy Europe, we intended to include his promotion to CEO. This one-time grant was
Mr. Wheway in a Best Buy Europe long-term incentive intended to increase his alignment with shareholders by
program to create better incentive alignment throughout having a greater portion of his compensation tied to
our European business. shareholder value creation. The special grant stock
Mr. Pershing’s LTIP award for fiscal 2010 was options to options have the same terms as the LTIP stock options.
purchase 40,000 shares, also unchanged from fiscal Mr. Wheway. Mr. Wheway was hired in May 2009 as
2009. He received three grants prior to his departure in Executive Vice President and Chief Operating Officer —
February 2010, all of which were forfeited upon his International with a salary of £440,000 (or $711,392
departure. based on the average exchange rate in fiscal 2010), a
Mr. Willett’s LTIP award for fiscal 2010 was options to 65% International Leadership STIP target payout
purchase 110,500 shares, unchanged from his LTIP percentage, and a special new hire grant of options to
award in fiscal 2009. During fiscal 2010, he received purchase 50,000 shares that vest 25% on the first
two grants: one in June 2009 (55,250 options) and one anniversary of the award and annually for three
in September 2009 (27,625 options). He received these additional years. The performance metrics for the
grants prior to his departure in January 2010, and as a International Leadership STIP are Operating Income,
qualified retiree, has one year from his departure date SG&A, International Revenue and Individual
to exercise his options. Performance Appraisal. In August 2009, he was
appointed to the position of Chief Executive Officer —
Best Buy Europe and, because of the changes in his
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