Pottery Barn 2007 Annual Report Download - page 120

one-year terms until Ms. Alber’s employment is terminated by her or by us. If we terminate Ms. Alber’s
employment without “cause” (as defined in the agreement), or if she terminates her employment with us for
“good reason” (as defined in the agreement), she will be entitled to receive (i) continuation of her base salary at
the time of termination for up to one year, and (ii) outplacement services at a level commensurate with her
position at no cost to her. In addition, we will pay the premiums for health coverage under COBRA for Ms. Alber
and her dependents until Ms. Alber either commences new employment or Ms. Alber or her dependents are no
longer eligible for COBRA coverage.
The following table describes the payments and/or benefits which would have been owed by us to Ms. Alber as
of February 3, 2008 if her employment had been terminated in various situations.
Compensation and Benefits
For Good
Reason
Involuntary
Without Cause
Change-in-
Control Death Disability
Base Salary(1) ............... $800,000 $800,000 — Through date of death $ 200,000(2)
Restricted Stock Units(3) ....... — — $4,128,000 $4,128,000 $4,128,000
Health Care Benefits(4) ........ $ 23,427 $ 23,427 — — —
Other Perquisites(5) ........... $150,000 $150,000 — — —
(1) Based on Ms. Alber’s base salary as of February 3, 2008.
(2) Payment of 13 weeks of salary.
(3) Acceleration of vesting of 150,000 restricted stock units. Value is based on a stock price of $27.52, the
closing price of our common stock on February 1, 2008, the last business day of fiscal 2007.
(4) Based on a monthly health insurance premium of $1,301 to be paid by the company for 18 months, which is
the period provided under COBRA.
(5) Value of outplacement services based on current estimate of costs for these services.
Sharon L. McCollam
We entered into an employment agreement with Sharon L. McCollam, effective as of December 28, 2002. She is
currently Executive Vice President, Chief Operating and Chief Financial Officer. The initial term of
Ms. McCollam’s agreement expired December 28, 2005, and, per its terms, automatically extends for one-year
terms until Ms. McCollam’s employment is terminated by her or by us. If we terminate Ms. McCollam’s
employment without “cause” (as defined in the agreement), or if Ms. McCollam terminates her employment with
us for “good reason” (as defined in the agreement), she will be entitled to receive (i) continuation of her base
salary at the time of termination for a period of one year and her target bonus for that year, and (ii) outplacement
services at a level commensurate with her position at no cost to her. In addition, we will pay the premiums for
health care coverage under COBRA for Ms. McCollam and her dependents until she either commences new
employment or she and her dependents are no longer eligible for COBRA coverage.
The following table describes the payments and/or benefits which would have been owed by us to Ms. McCollam
as of February 3, 2008, if her employment had been terminated in various situations.
Compensation and Benefits
For Good
Reason
Involuntary
Without Cause
Change-in-
Control Death Disability
Base Salary(1) .............. $ 725,000 $ 725,000 — Through date of death $ 181,250(2)
Bonus(3) .................. $2,175,000 $2,175,000 — — —
Restricted Stock Units(4) ..... — — $4,128,000 $4,128,000 $4,128,000
Health Care Benefits(5) ....... $ 8,352 $ 8,352 — — —
Other Perquisites(6) .......... $ 150,000 $ 150,000 — — —
(1) Based on Ms. McCollam’s base salary as of February 3, 2008.
(2) Payment of 13 weeks of salary.
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