Pottery Barn 2009 Annual Report Download - page 128

Executive Compensation
This table sets forth the annual and long-term compensation earned by our Chief Executive Officer, Chief Financial
Officer and our three other most highly compensated executive officers during fiscal 2009. These individuals are
collectively known as our named executive officers.
Summary Compensation Table for Fiscal 2009, 2008 and 2007
Name and
Principal Position Year(1)
Salary
($)
Bonus
($)
Stock
Awards
($)(2)
Option
Awards
($)(3)
Non-Equity
Incentive Plan
Compensation
($)
Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings(4)
All Other
Compensation
($)(5) Total ($)
W. Howard Lester . . 2009 $975,000 — $5,705,308(6) $3,584,403(7) $2,000,000 $ 84,256 $484,026 $12,832,993
Chairman and 2008 $975,000 — $1,277,227(8) $1,335,478 — $(238,669) $700,874 $ 4,049,910
Chief Executive 2007 $993,750 — — — — $ 55,279 $479,507 $ 1,528,536
Officer (PEO)
Sharon L. McCollam 2009 $725,000 — — — $1,500,000 — $ 84,755 $ 2,309,755
Executive Vice 2008 $725,000 — $2,053,942(9)(10) $ 864,133 — — $ 88,330 $ 3,731,405
President, Chief 2007 $738,942 — — $ 582,715 $ 200,000 — $ 84,277 $ 1,605,934
Operating and
Chief Financial
Officer (PFO)
Laura J. Alber ..... 2009 $800,000 — — — $1,500,000 — $ 84,506 $ 2,384,506
President 2008 $800,000 — $2,053,942(9)(10) $ 722,729 — — $ 88,078 $ 3,664,749
2007 $815,385 — — $ 582,715 $ 150,000 — $ 84,268 $ 1,632,368
Patrick J. Connolly . 2009 $570,000 — — — $ 500,000 — $ 14,897 $ 1,084,897
Director and 2008 $570,000 — $ 510,890(11) $ 502,768 — — $ 19,222 $ 1,602,880
Executive Vice 2007 $578,769 — — — $ 100,000 — $ 19,900 $ 698,669
President, Chief
Marketing Officer
Richard Harvey .... 2009 $524,994 — — (12) — $ 600,000 — $ 31,955 $ 1,156,949
President, 2008 $476,538 — $ 283,482 $ 314,230 — — $ 33,686 $ 1,107,936
Williams-Sonoma 2007 $471,346 — — $ 291,358 $ 150,000 — $ 32,853 $ 945,557
Brand
(1) The compensation reflected in the Summary Compensation Table for fiscal 2007 reflects a 53-week period.
(2) Based on the fair market value of awards granted in fiscal 2009, fiscal 2008, and fiscal 2007. The fair market value is calculated as the closing
price of our stock on the day prior to the grant date multiplied by the number of units granted.
(3) Based on the fair market value of awards granted in fiscal 2009, fiscal 2008, and fiscal 2007. The fair market value assumptions used in the
calculation of these amounts are included in Note H to our Consolidated Financial Statements, which is included in our Annual Report on Form
10-K for the fiscal year ended January 31, 2010.
(4) Total income (loss) in the Executive Deferral Plan as shown in the “Nonqualified Deferred Compensation” table on page 39.
(5) Details are provided in the “Other Annual Compensation from Summary Compensation” table on page 35.
(6) Represents the sum of (i) $5,000,000, the grant date fair value of an award made on January 25, 2010 with respect to fiscal 2009 performance,
and (ii) $705,308, the total incremental fair value of an award granted on May 2, 2008, subsequently modified on October 28, 2008 to remove
the performance criteria associated with this award (see footnote 8 below), and subsequently modified on January 25, 2010 to provide for the
acceleration of vesting in connection with Mr. Lester’s retirement. The incremental fair value of the modified award in fiscal 2009 is computed
as of January 25, 2010, the modification date. Please see the section titled “Employment Contracts and Termination of Employment and
Change-of-Control Arrangements” beginning on page 40 for further discussion about awards and modifications of awards made in connection
with Mr. Lester’s retirement, including additional equity awards to be granted in fiscal 2010.
(7) Represents the sum of the incremental fair values of two unvested awards modified on January 25, 2010 to provide for the acceleration of
vesting in connection with Mr. Lester’s retirement: (i) $251 represents the incremental fair value of an option award granted on May 27, 2005
and subsequently modified on January 25, 2010, and (ii) $3,584,152 represents the incremental fair value of a SSAR award granted on
November 7, 2008 and subsequently modified on January 25, 2010. The incremental fair value of each of the modified awards is computed as of
January 25, 2010, the modification date. Please see the section titled “Employment Contracts and Termination of Employment and
34