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CINCINNATI -- The Kroger Co.'s 13 percent earnings boost in 2006 helped the chain's c.e.o., David Dillon, earn a hefty $1.4 million raise from 2005 that's equivalent to almost $7.5 million in cash and stock options, the company said.
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 earlier this week. 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.
The Cincinnati-based grocer operates more than 2,500 supermarkets and multi-department stores in 31 states.