Best Buy (BBY)

Element

Form of Compensation

Purpose

Performance Metric(s)

Base Salary

Cash

Provide competitive, fixed compensation to attract and retain exceptional executive talent

Not performance-based

Short-Term Incentive

Cash

Create a strong financial incentive for achieving or exceeding a combination of company and executive management team goals

EVA®; operating income rate; revenue growth; selling, general and administrative expenses rate

Long-Term Incentive

Stock options

Create a strong financial incentive for achieving or exceeding long-term performance goals and encourage a significant equity stake in our company

Best Buy Common Stock price

Special Long-Term Incentive

Performance-based restricted stock

Performance-based incentive to strengthen alignment of executive team interests and reward long-term achievement of specific company goals

EVA® growth; revenue growth; Best Buy Common Stock price growth; talent management

Health, Retirement and Other Benefits

Eligibility to participate in benefit plans generally available to our employees, including retirement, stock purchase, health, life insurance and disability plans

Plans are part of our broad-based employee benefits program

Not performance-based

Executive Benefits and Perquisites

Annual executive physical exam, supplemental long-term disability insurance, four weeks of paid vacation, enhanced employee discount, stock ownership target planning, tax planning or preparation services, and, for Mr. Anderson only, an automobile allowance

Provide competitive benefits to promote the health, well-being and financial security of our executive officers

Not performance-based