Pottery Barn 2008 Annual Report Download - page 129

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changed significantly. For fiscal 2008, the group of comparable companies consisted of the following 19 public
retail companies: Abercrombie & Fitch, American Eagle Outfitters, Ann Taylor, Barnes & Noble, Bed Bath &
Beyond, Borders Group, Cost Plus, Ethan Allen Interiors, The Gap, Limited Brands, Men’s Wearhouse,
Nordstrom, Office Depot, Pier 1 Imports, PetSmart, Ross Stores, Starbucks, Talbots and Tiffany & Co. This is
the same peer group of companies used for comparison purposes in fiscal 2007.
In September 2008, the Compensation Committee revised the proxy peer group based on the following criteria,
which reflected the company’s profile at that time:
1. Company Classification in the Global Sub-Industry Classification System (GICS) in one of the
following:
• Home Furnishing Retail
• Apparel Retail
• Department Stores
2. Revenues between $1 billion and $12 billion
3. Market capitalization greater than $1 billion
4. More than 15,000 employees
Additionally, other major specialty retailers in geographic proximity to the San Francisco Bay Area were
considered for inclusion in the proxy peer group.
By utilizing the criteria described above, the Compensation Committee eliminated seven companies and added
three companies to the proxy peer group for fiscal 2009.
The eliminated companies and the reason(s) for elimination are below:
Company Reason(s) for Elimination
Borders Group Market capitalization too low
Cost Plus Market capitalization too low
Ethan Allen Interiors Not within defined GICS sub-industries; Revenue too low; Market capitalization too
low
Office Depot Not within defined GICS sub-industries; Revenue too high
PetSmart Not within defined GICS sub-industries
Starbucks Not within defined GICS sub-industries
Talbots Market capitalization too low
The additional companies and the reason(s) for inclusion are below:
Company Reason(s) for Inclusion
Foot Locker Within defined GICS sub-industry, revenue, market capitalization and employee size
Gymboree Within defined GICS sub-industry; San Francisco Bay Area specialty retailer
Saks Within defined GICS sub-industry, revenue, market capitalization and employee size
Therefore, the revised proxy peer group for fiscal 2009 contains the following 15 public companies:
Abercrombie & Fitch, American Eagle Outfitters, AnnTaylor Stores, Barnes & Noble, Bed Bath & Beyond, Foot
Locker, The Gap, Gymboree, Limited Brands, Men’s Wearhouse, Nordstrom, Pier 1 Imports, Ross Stores, Saks
and Tiffany & Co.
31
Proxy