Best Buy 2009 Annual Report Download - page 30

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• Automobile allowances Compensation Committee, except at the request and
under the direction of HR.
• Country club memberships
Role of Chief Executive Officer in Determining
During fiscal 2009, we did not provide these types of
Compensation. Our CEO does not participate in or
compensation, benefits and perquisites to our executive otherwise influence HR’s compensation
officers because they are contrary to our culture and are recommendations for himself. However, our CEO
not consistent with our compensation objectives. Our generally is present when HR presents compensation
decision not to provide them generally reduces the recommendations to the Compensation Committee for
amount of total compensation received by our executive our other executive officers (except for recommendations
officers relative to other large companies, although we regarding his own compensation) and provides his
seek to compensate our executive officers utilizing our perspective regarding the recommendations. Our CEO’s
Executive Compensation Framework with elements of performance ratings of, and his comments about, his
compensation that recognize them for their past and direct reports impact the compensation of his direct
expected future contributions and performance. reports, but his input is only one of many factors
Additional information regarding the benefits and considered in determining total compensation. Our
perquisites available to the named executive officers is other executive officers do not participate in the
included in Benefits and Perquisites on page 39. development of compensation recommendations or the
approval process, although they may provide
Role of Independent Compensation Consultant in
perspective on recommendations for their direct reports.
Determining Compensation. The Compensation
Committee reviews HR’s executive compensation Summary of Compensation and Benefit Programs. We
recommendations with The Delves Group, an maintain a variety of compensation and benefit
independent compensation consulting firm retained by programs in which our executive officers and other
the Compensation Committee. The Compensation selected employees participate. These programs include,
Committee believes that this review helps ensure that but are not limited to, our Omnibus Plan, our Executive
HR’s compensation recommendations are in line with Officer Short-Term Incentive Program (‘‘Executive Officer
our stated objectives and reasonable when compared to STIP’’), our Long-Term Incentive Program (‘‘LTIP’’), our
the market for executive talent. In addition, the Deferred Compensation Plan, our Retirement Savings
engagement of an independent consultant enhances the Plan and our ESPP.
overall independence of the Compensation Committee’s
Voluntary Separation Program. We believe that the
decision-making. The Delves Group reports directly to
most engaged and productive employees are those
the Compensation Committee and does not provide any
employees who are in the position they desire.
consulting or other services to Best Buy.
Accordingly, and with the objective of reducing expense
Role of Management Compensation Consultant in from our corporate payroll, we adopted a one-time
Determining Compensation. HR has engaged a third- Voluntary Separation Program in fiscal 2009. A
party compensation consultant, Towers Perrin, a global voluntary separation offer was made to most of our
professional services firm, to assist in the development corporate employees, including Ms. Ballard and
and analysis of external compensation data that is used Mr. Morrish. The offer was not extended to
to facilitate HR’s executive compensation Messrs. Anderson, Muehlbauer, Dunn and Willett.
recommendations to the Compensation Committee. At Employees who agreed to leave received an enhanced
the request of HR and with the consent of the separation package, based on their grade level.
Compensation Committee, a representative of Towers Employees meeting certain years of service and age
Perrin regularly attends meetings of the Compensation criteria received an additional enhancement to the
Committee to address matters directly related to the separation package. Mr. Morrish decided to accept the
engagement, including questions regarding external voluntary separation offer in January 2009. Additional
market data and related analyses. Towers Perrin reports information regarding the specific payout received by
directly to HR and does not engage with the Mr. Morrish begins on page 38.
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