Document:

exv10w16

Exhibit 10.16

DESCRIPTION OF DIRECTOR COMPENSATION ARRANGEMENTS

Compensation of Directors who are Employees of the Company

Directors who are employees of TJX are not paid for their service as a director.

Compensation of Non-Employee Directors

For fiscal year 2011, we paid all of our non-employee directors as follows:

	 	•	 	Annual retainer of $50,000 for each non-employee director.
	 
	 	•	 	Additional annual retainer of $10,000 for each Committee chair.
	 
	 	•	 	Additional annual retainer of $70,000 for the Lead Director.
	 
	 	•	 	Fee of $1,500 for each Board meeting attended (each day of a multiple day Board
meeting is treated as a separate Board meeting with respect to this fee).
	 
	 	•	 	Fee of $2,000 for each Committee meeting attended as a Committee member or $2,500
for each Committee meeting attended as Committee chair (other than, in each case, the
Executive Committee).
	 
	 	•	 	Two annual deferred share awards, each representing shares of our common stock
valued at $50,000.

     Payment of fees for attendance at special meetings of the Board or committees is at the
discretion of the Chairman of the Board or the lead director, taking into consideration such
matters as deemed relevant by the Chairman of the Board or the lead director, as applicable, such
as the length of the meeting and preparation time required. The Executive Committee does not
receive the committee-specific compensation. Directors are reimbursed for customary expenses for
attending Board and committee meetings. The deferred stock awards (and deferred dividends on those
awards) are granted under our Stock Incentive Plan (SIP). One of the deferred stock awards vests
immediately and is payable with accumulated dividends in stock at the earlier of separation from
service as a director or change of control. The second award vests based on service as a director
until the annual meeting next following the award and is payable with accumulated dividends in
stock upon vesting, unless an irrevocable advance election is made whereby it is payable at the
same time as the first award. In the event that a director separates from service as a director
prior to vesting in the second award, such award will be forfeited. Deferred share awards and
deferred dividends on those awards are distributed as shares of common stock.

     Directors may participate in our Executive Savings Plan (ESP), a non-qualified deferred
compensation plan, under which amounts deferred earn a return based on notional investments in
mutual funds or other market investments. Participating directors may select a distribution date
earlier than retirement from the Board, but no earlier than January 1st of the second
year following the year of the deferral. Prior to January 1, 2008, directors were eligible to
defer their retainers and fees in our General Deferred Compensation Plan (GDCP), under which
amounts deferred continue to earn interest at a periodically adjusted market-based rate. Amounts
deferred under the GDCP on or after January 1, 2005 that had not been distributed prior to January
1, 2009 are distributed under the terms of the ESP, as described above. Amounts deferred under

 

 

the GDCP prior to January 1, 2005 are paid at retirement from the Board. We do not provide
retirement or insurance benefits for our non-employee directors.

     The amount of each annual deferred stock award has been increased to $62,500 for fiscal year
2012; all other director compensation remains the same.exv10w17

Exhibit 10.17

THE TJX COMPANIES, INC.

LONG RANGE PERFORMANCE INCENTIVE PLAN

(As amended and restated effective as of March 5, 2010)

 

 

THE TJX COMPANIES, INC. 

LONG RANGE PERFORMANCE INCENTIVE PLAN

Table of Contents

	 	 	 	 	 

	1. Purpose
	 	 	1	 
	 
	 	 	 	 
	2. Definitions
	 	 	1	 
	 
	 	 	 	 
	3. Term
	 	 	1	 
	 
	 	 	 	 
	4. Plan Administration
	 	 	1	 
	 
	 	 	 	 
	5. Eligibility and Target Award
	 	 	1	 
	 
	 	 	 	 
	6. Award Goals
	 	 	2	 
	 
	 	 	 	 
	7. Determination of Awards
	 	 	2	 
	 
	 	 	 	 
	8. Payment
	 	 	4	 
	 
	 	 	 	 
	9. Transferability
	 	 	4	 
	 
	 	 	 	 
	10. Designation of Beneficiary
	 	 	4	 
	 
	 	 	 	 
	11. Change of Control; Mergers, etc.
	 	 	5	 
	 
	 	 	 	 
	12. Amendment and Modification
	 	 	6	 
	 
	 	 	 	 
	13. Withholding Taxes
	 	 	6	 
	 
	 	 	 	 
	14. Future Rights
	 	 	6	 
	 
	 	 	 	 
	15. Controlling Law
	 	 	6	 
	 
	 	 	 	 
	16. Awards to Certain Officers
	 	 	6	 

 

 

THE TJX COMPANIES, INC.

LONG RANGE PERFORMANCE INCENTIVE PLAN

	1.	 	Purpose
	 
	 	 	The purpose of The TJX Companies, Inc. Long Range Performance Incentive Plan (the “Plan”) is
to promote the long-term success of The TJX Companies, Inc. (the “Company”) and its
shareholders by providing competitive incentive compensation to those officers and selected
employees upon whose judgment, initiative, and efforts the Company depends for its
profitable growth.
	 
	2.	 	Definitions
	 
	 	 	Reference is hereby made to the Company’s 1986 Stock Incentive Plan (the “1986 Plan”). Terms
defined in the 1986 Plan and not otherwise defined herein are used herein with the meanings
so defined.
	 
	3.	 	Term
	 
	 	 	The plan shall be effective as of January 25, 1992 (the start of fiscal year 1993), and the
Plan shall remain in effect until terminated by the Company’s Board of Directors (the
“Board”). The effective date of this amendment and restatement of the Plan shall be March
5, 2010.
	 
	4.	 	Plan Administration
	 
	 	 	The Plan shall be administered by the same Committee that administers the 1986 Plan. The
Committee shall have full and exclusive power to interpret the Plan and to adopt such rules,
regulations and guidelines for carrying out the Plan as it may deem necessary or proper,
consistent with the 1986 Plan.
	 
	5.	 	Eligibility and Target Award
	 
	 	 	Any key employee (an “Employee”) of the Company or any of its Subsidiaries who could receive
an award under the 1986 Plan shall be eligible to receive awards under the Plan.
	 
	 	 	At the commencement of each performance cycle (the “Performance Cycle”), which shall be a
two-year or a three-year cycle as specified by the Committee at the commencement of such
Performance Cycle, the Committee shall designate those who will participate in the Plan (the
“Participants”) and their target awards (the “Awards”).

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	 	 	Subsequent to the commencement of a Performance Cycle, the Committee may, in special
circumstances, designate additional Participants and their target Awards for such
Performance Cycle.
	 
	6.	 	Award Goals
	 
	 	 	At the commencement of each Performance Cycle, the Committee shall set one or more
performance goals (the “Performance Goals”) for such Performance Cycle, the relative weight
to be given to each Performance Goal, and a schedule for determining payments if actual
performance is above or below the goal. For the Performance Cycles for fiscal years
1995–1997 and thereafter, Awards shall not provide for any minimum payment; however, the
Committee for each such Cycle shall establish a maximum (not to exceed 150%) of the Award
which may be earned. No Participant (or beneficiary or estate of a Participant) shall be
entitled to an award under the Plan until the Committee has approved all of the terms of the
award applicable to such Participant for the Performance Cycle, including as set forth in
this Section 6, and then any such entitlement shall be only in accordance with such terms
and the Plan.
	 
	 	 	At any time designated by the Committee during a Performance Cycle or thereafter, but prior
to Award payment, appropriate adjustments in the goals may be made by the Committee to avoid
undue windfalls or hardships due to external conditions outside the control of management,
nonrecurring or abnormal items, or other matters as the Committee shall, in its sole
discretion, determine appropriate to avoid undue windfalls or hardships.
	 
	 	 	As soon as practicable after the end of the Performance Cycle, the Committee shall determine
what portion of each Award has been earned in accordance with Section 7(a). The Award
payment shall be paid in cash in accordance with Section 8.
	 
	7.	 	Determination of Awards

	 	(a)	 	Upon completion of each Performance Cycle, the Committee shall review
performance relative to Performance Goals, and determine the value of the Awards for
each Performance Cycle, subject to the approval of the President of TJX and/or the
Chairman of the Committee.
	 
	 	 	 	Achievement of Performance Goals shall result in payment of the target Award.
Failure to achieve Performance Goals will result in a decrease or elimination of the
Participant’s Award. Exceeding Performance Goals will result in an increased Award.
	 
	 	 	 	Performance Goal Awards may be adjusted upward or downward by the Committee due to
special circumstances or individual performance review. Without limiting the
generality of the foregoing, the Committee may reduce or eliminate (i) Awards to
Participants receiving “Needs Improvement” performance

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	 	 	 	ratings, and (ii) awards otherwise payable to Participants who were on a leave of
absence for any portion of the applicable Performance Cycle.
	 
	 	(b)	 	If an employee becomes a Participant after the beginning of a Performance
Cycle, the Award payable to him or her shall be prorated in accordance with the portion
of the Performance Cycle in which he or she is a Participant.
	 
	 	(c)	 	In the event of termination of employment of a Participant for any reason prior
to the last day of the Performance Cycle, a Participant thereafter shall have no
further rights under the Plan and shall not be entitled to payment of any Award, except
as follows (and subject to the last sentence of this Section 7):

	 	(i)	 	If, prior to the last day of the Performance Cycle, a
Participant’s employment terminates by reason of death, the beneficiary or
estate of the Participant (as determined under Section 10) shall be entitled to
a prorated Award under Section 7(c)(iv).
	 
	 	(ii)	 	If, prior to the last day of the Performance Cycle, a
Participant’s employment is terminated by the Company by reason of Disability,
the Participant (or, if the Participant is deceased, the beneficiary or estate
of a Participant, as determined under Section 10) shall be entitled to a
prorated Award under Section 7(c)(iv). “Disability” shall mean disability as
determined in accordance with the standards and procedures similar to those
used under the Company’s long term disability program, and subject to any
applicable legal or regulatory requirements in the relevant jurisdictions.
	 
	 	(iii)	 	If termination of employment occurs (A) by reason of normal
retirement under a retirement plan of the Company, (B) with the consent of the
Company, or (C) after the commencement of a Performance Cycle but before an
award was (or would have been) granted to the Participant for such Performance
Cycle, the Committee may, in its sole discretion, value and direct that all or
some portion of the Award that was (or would have been) granted to the
Participant for the Performance Cycle be deemed earned and payable, taking into
account the duration of employment during the Performance Cycle, the
Participant’s performance, and other matters as the Committee shall deem
appropriate. Notwithstanding the foregoing, no participant will be deemed to
have a nonforfeitable right to payment of any prorated Award under this section
7(c)(iii) until the end of such Performance Cycle, and then only to the extent
provided under the terms of such Award.
	 
	 	(iv)	 	Unless otherwise provided by the Committee (including, without
limitation, pursuant to Section 7(a)), a prorated Award under subsections (i),
(ii), or (iii) of this Section 7(c) shall be the Participant’s target Award,

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	 	 	 	if any, for each Performance Cycle that begins before and ends after the
date of termination, and multiplied by a fraction, the numerator of which is
the number of full months in such Cycle completed prior to such termination
and the denominator of which is the total number of full months in such
Cycle, and further reduced, as applicable, under Section 7(b). Any such
prorated Award shall be paid, if at all, in accordance with Section 8.
	 
	 	(v)	 	In the event of termination of employment for cause, as defined
and determined by the Committee in its sole discretion, no payment shall be
made with regard to any prior or current Performance Cycle.

The provisions in this Section 7 are subject to the terms of any employment agreement, severance
agreement or severance plan applicable to any one or more participants and in the event of any
conflict, such terms shall control payment.

	8.	 	Payment
	 
	 	 	As soon as practicable after the end of each Performance Cycle and the valuation of the
award for such Performance Cycle, but in no event later than two and one-half (2 1/2) months
after the later of the end of the calendar year or the fiscal year of the Company in which
such Performance Cycle ends, payment (including, for the avoidance of doubt, any prorated
payment made pursuant to Section 7 that is based on actual performance for a Performance
Cycle) shall be made in cash with respect to the award earned by each Participant for such
Performance Cycle; provided, that any prorated target Award under Section 7(c)(iv) shall be
paid at the same time other Awards are paid for the next completed Performance Cycle
following termination of employment (without regard to the Performance Cycle to which such
Award relates). Any such payment shall be subject to applicable withholding as set forth in
Section 13 below. Payments hereunder are intended to constitute short-term deferrals exempt
from Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder and shall be construed and administered accordingly.
	 
	9.	 	Transferability
	 
	 	 	Awards under the Plan will be nontransferable and shall not be assignable, alienable,
saleable or otherwise transferable by the Participant other than by will or the laws of
descent and distribution.
	 
	10.	 	Designation of Beneficiary

	 	(a)	 	Subject to applicable law, each Participant shall have the right to file with
the human resources/benefits administrator in the relevant jurisdiction who has been
appointed by the Company to administer the provisions of this Section 10 for such
jurisdiction (the “applicable administrator”) a written designation of one or more

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	 	 	 	persons as the beneficiary(ies) who shall be entitled to receive the amount, if any,
payable under the Plan upon his or her death. A Participant may from time to time
revoke or change his or her beneficiary by filing a new designation with the
applicable administrator. The last such designation received by the applicable
administrator shall be controlling, provided, however, that no designation change or
revocation thereof shall be effective unless received by the applicable
administrator prior to the Participant’s death and in no event shall it be effective
as of a date prior to receipt.
	 
	 	(b)	 	If no such beneficiary designation is in effect at the time of a Participant’s
death, or if no designated beneficiary survives the Participant, or if such designation
conflicts with law, the payment of the amount, if any, payable under the Plan upon his
or her death shall be made to the Participant’s estate. If the applicable administrator
is in doubt as to the right of any person to receive any amount, the applicable
administrator may retain such amount, without liability for any interest thereon, until
the rights thereto are determined, or the applicable administrator may pay such amount
into any court of appropriate jurisdiction, and such payment shall be a complete
discharge of the liability of the Plan, the Company, and the applicable administrator
therefor.

	 	 	All determinations necessary to construe or effectuate this Section 10 shall be made by the
Company.

	11.	 	Change of Control; Mergers, etc.

	 	(a)	 	In the event the Company undergoes a Change of Control as defined in the 1986
Plan, this Plan shall automatically terminate and within 30 days following such Change
of Control, whether or not a Participant’s employment has been terminated, the Company
shall pay to the Participant the following in a lump sum in full payment of his or her
Award:
	 
	 	 	 	An amount with respect to each Performance Cycle for which the Participant has been
designated as a Plan Participant equal to 50 percent of the product of (i) the
maximum Award for the Participant for such Performance Cycle and (ii) a fraction,
the denominator of which is the total number of fiscal years in the Performance
Cycle and the numerator of which is the number of fiscal years which have elapsed in
such Performance Cycle prior to the Change of Control (for purposes of this
fraction, if the Change of Control occurs during the first quarter of a fiscal year,
then one quarter of the fiscal year shall be deemed to have lapsed prior to the
Change of Control, and if the Change of Control occurs after the first quarter of
the fiscal year, then the full fiscal year shall be deemed to have elapsed prior to
the Change of Control). For purposes of this paragraph (a), the Valuation Date shall
be the day preceding the date of the Change of Control. This paragraph (a) shall not
apply to any Participant whose rights under this Plan upon a Change of Control are
governed by another agreement or plan.

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	 	(b)	 	In the event of a merger or consolidation with another company or in the event
of a liquidation or reorganization of the Company, other than any merger,
consolidation, reorganization or other event that constitutes a Change of Control, the
Committee may in its sole discretion determine whether to provide for adjustments and
settlements of Awards. The Committee may make such determination at the time of the
Award or at a subsequent date.

	12.	 	Amendment and Modification
	 
	 	 	The Board may from time to time amend, modify, or discontinue the Plan or any provision
hereof. No such amendment to, or discontinuance, or termination of the Plan shall, without
the written consent of a Participant, adversely affect any rights of such Participant under
an outstanding Award.
	 
	13.	 	Withholding Taxes
	 
	 	 	The Company shall have the right to deduct withholding taxes from any payments made pursuant
to the Plan, or make such other provisions as it deems necessary or appropriate to satisfy
its obligations for withholding federal, state, or local income or other taxes incurred by
reason of payments pursuant to the Plan.
	 
	 	 	Participants may elect in a writing furnished to the Committee prior to the Valuation Date
to satisfy their federal tax obligations with respect to any shares paid hereunder by
directing the Company to withhold an equivalent value of shares.
	 
	14.	 	Future Rights
	 
	 	 	No person shall have any claim or rights to be granted an Award under the Plan, and no
Participant shall have any rights under the Plan to be retained in the employ of the
Company.
	 
	 	 	If and to the extent that any Participant or his or her legal representative or designated
beneficiary, as the case may be, acquires a right to receive any payment from the Company
pursuant to the Plan, such right shall be no greater than the right of an unsecured general
creditor of the Company.
	 
	15.	 	Controlling Law
	 
	 	 	This Plan shall be construed and enforced according to the laws of the Commonwealth of
Massachusetts, to the extent not preempted by Federal law, which shall otherwise control.
	 
	16.	 	Awards to Certain Officers
	 
	 	 	Except as the Committee may determine in any case, the provisions of this Section 16 shall
apply, notwithstanding any other provision of the Plan to the contrary, in the case of

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	 	 	any Award made to a person expected to be described in Section 162(m) of the Internal
Revenue Code (“Section 162(m)”) at the time the Award is to be paid, as determined by the
Committee at the time of the Award. In the case of any such Award: (a) Performance Goals
shall be based on any one or more of the following (on a consolidated, divisional, line of
business, geographical or area of executive’s responsibilities basis): one or more items of
or within (i) sales, revenues, assets or expenses; (ii) earnings, income or margins, before
or after deduction for all or any portion of interest, taxes, depreciation, amortization, or
such other items as the Committee may determine at the time the Performance Goals are
preestablished (within the meaning of Section 162(m)), whether or not on a continuing
operations and aggregate or per share basis; (iii) return on investment, capital, assets,
sales or revenues; and (iv) stock price; (b) unless otherwise determined by the Committee in
a manner that is consistent with the requirement that the Performance Goals be
preestablished within the meaning of, and that the Award otherwise comply with the
performance-based compensation exemption under, Section 162(m), the specific Performance
Goals established by the Committee with respect to any Award shall be subject to mandatory
adjustment where such Performance Goal is affected by any of the following objectively
determinable factors occurring after the Performance Goal has been established by the
Committee, such that performance with respect to such Performance Goal for such Award shall
be determined without regard to such factor: (i) any change in, or elimination or addition
of, an accounting standard or principle, or any change in the interpretation thereof,
whether identified as a change, error, correction or otherwise denominated, by the FASB, the
SEC or its staff, the PCAOB, or other competent accounting or regulatory body, as determined
by the Committee, (ii) any change in laws, rules, regulations or other interpretations or
guidance issued by a competent regulatory body if the effect of such change would be to
affect the financial measure by more than 1% (as objectively determined by the Committee),
(iii) any acquisition or disposition by the Company of a business or portion thereof,
however structured, if the effect of such acquisition or disposition would be to affect the
financial measure by more than 1% (as objectively determined by the Committee), and (iv) any
other objectively determinable factor that is specified by the Committee within 90 days of
the commencement of the applicable performance period (or within the first one-quarter of
the applicable performance period, if shorter); (c) the maximum amount payable under any
Plan Award to any such individual shall be $5,000,000; (d) no payment shall be made under
the Award unless the applicable Performance Goals, which shall have been preestablished
within the meaning of Section 162(m), have been met, nor shall any such payment be made
until the Committee certifies in accordance with Section 162(m) that such Goals have been
met; and (e) those provisions of the Plan generally applicable to Awards hereunder which
give to the Committee or any other person discretion to modify the Award after the
establishment and grant of the Award, or which if applied to an Award described in this
Section 16 might otherwise cause such Award to fail to qualify as a performance-based award
under Section 162(m), shall be deemed inapplicable to the extent (but only to the extent)
the retention of such discretion by such person or the application of such provision would
be deemed inconsistent with qualification of the Award as performance-based within the
meaning of

Section 162(m).

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