Pier 1 2009 Annual Report Download - page 136

Download and view the complete annual report

Please find page 136 of the 2009 Pier 1 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 173

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173

granted during fiscal 2009, have an exercise price higher than the closing price of Pier 1 Imports’
common stock at the end of fiscal 2009, which was $0.21. In order to remain competitive and return
Pier 1 Imports to profitability, our pay program must be motivational, realistically achievable and tied
to improved performance at Pier 1 Imports. We do not believe that a compensation plan designed
according to the proposal would fulfill these objectives. Pier 1 Imports remains committed to utilizing
rigorous performance goals as a measure of executive compensation and benchmarking its mix of base
salary, short-term incentives and long-term incentives as elements of total compensation to peer group
studies and surveys.
It would be unwise at this time for Pier 1 Imports to choose to condition payment of incentives to
senior executives and key management on meeting or exceeding performance standards based on
defined financial performance criteria of other peers which bear no relation to Pier 1 Imports’
turnaround efforts, general operating environment and focus on a return to profitability. Pier 1 Imports
prefers to design and implement both realistic and achievable annual and long-term incentive plans for
its senior executives and key management team. An incentive compensation program that could permit
payments to senior executives in certain circumstances when Pier 1 Imports has performed below its
own expectations would fall well short of the objectives embodied in Pier 1 Imports’ existing program,
which has proven to be effective in Pier 1 Imports’ current turnaround efforts, general operating
environment and focus on a return to profitability. We believe that the performance measures used by
Pier 1 Imports are set at levels that embody a ‘‘pay-for-superior-performance’’ standard because the
profits and value of Pier 1 Imports would have to improve before any annual performance-based
incentives are paid or long-term compensation has any value.
The board of directors unanimously recommends a vote ‘‘AGAINST’’ this proposal.
38