Pier 1 2016 Annual Report Download - page 110

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COMPENSATION
The fiscal 2016 Profit Goal at target represented an increase of slightly over 10% above the Realized Profit for fiscal 2015. No award
payout was possible unless the Realized Profit for 2016 met or exceeded the threshold. Fiscal 2016 short-term incentive opportunity as
a percentage of base salary for each NEO is shown in Table 4 below. The Realized Profit for fiscal 2016 was below the threshold Profit
Goal established for fiscal 2016 and, as a result, no NEO earned a fiscal 2016 short-term incentive award. For fiscal 2016, e-Commerce
sales exceeded the threshold performance level, however that metric was tied to Profit Goal achievement and Realized Profit was below
the threshold Profit Goal. As a result, no payout was possible under the e-Commerce sales component of the program.
Table 4 FISCAL 2016 ANNUAL SHORT-TERM INCENTIVE OPPORTUNITY
AS A PERCENTAGE OF BASE SALARY
NAMED EXECUTIVE OFFICER
AT THRESHOLD
PERFORMANCE
LEVELS
AT TARGET
PERFORMANCE
LEVELS
AT MAXIMUM
PERFORMANCE
LEVELS
ACTUAL
PAYOUT
Alexander W. Smith 34.5% 115% 230% 0%
Jeffrey N. Boyer* 22.5% 75% 150% 0%
Laura A. Coffey 22.5% 75% 150% 0%
Michael R. Benkel 22.5% 75% 150% 0%
Catherine David 22.5% 75% 150% 0%
EricW. Hunter 22.5% 75% 150% 0%
Sharon M. Leite 22.5% 75% 150% 0%
* Mr. Boyer’s short-term incentive would have been pro-rated based on his date of appointment (July 27, 2015).
The fiscal 2016 short-term incentive program required participants to be employed with Pier 1 Imports at fiscal year-end to receive a
cash award. The program allows Pier 1 Imports’ chief executive officer to reduce the cash award of a participant as a result of individual
or group performance. Pier 1 Imports believes that the above-target percentage levels are competitive when compared to Pier 1
Imports’ fiscal 2016 peer group.
Long-Term Incentive
No performance-based awards earned in
fiscal 2016
Pier 1 Imports believes that a blend of performance- and time-based restricted stock provides a long-term incentive opportunity that is
competitive in the retail industry, incentivizes performance, and serves as a retention tool. During fiscal 2016, equity grants were a mix of
performance-based restricted stock utilizing achievement of two different performance measures, and time-based restricted shares
vesting ratably over a three-year period. Table 5 below provides a breakdown of the restricted stock awarded to the NEOs, other than
Mr. Smith, in fiscal 2016. Mr. Smith did not participate in the fiscal 2016 long-term incentive equity award given his awards of restricted
stock pursuant to his employment agreement as described below under the caption “Chief Executive Officer Employment Agreement.”
Table 5
NAMED EXECUTIVE
OFFICER
PERFORMANCE-BASED
SHARES – PROFIT GOAL
AT TARGET
(#)
PERFORMANCE-BASED
SHARES – TSR
AT TARGET (#)
TIME-BASED
SHARES
(#)
Jeffrey N. Boyer 19,729 3,949 15,785
Laura A. Coffey 8,623 1,726 6,898
Michael R. Benkel 13,646 2,730 10,917
Catherine David 17,058 3,412 13,646
EricW. Hunter 14,016 2,804 11,212
Sharon M. Leite 16,110 3,223 12,888
28 PIER 1 IMPORTS, INC. | 2016 Proxy Statement