Pottery Barn 2010 Annual Report Download - page 145

Executive Compensation
This table sets forth the annual and long-term compensation earned by our Chief Executive Officer, former Chief
Executive Officer, Chief Financial Officer and our three other most highly compensated executive officers
during fiscal 2010. These individuals are collectively known as our named executive officers.
Summary Compensation Table for Fiscal 2010, Fiscal 2009 and Fiscal 2008
Name and
Principal Position
Fiscal
Year
Salary
($)
Bonus
($)
Stock
Awards
($)(1)
Option
Awards
($)(2)
Non-Equity
Incentive Plan
Compensation
($)
Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings
All Other
Compensation
($)(3) Total ($)
Laura J. Alber .......... 2010 $948,077 $350,000(4) $7,761,600 $2,032,940 $2,400,000 — $ 62,795 $13,555,412
Director, President
and Chief Executive
Officer (PEO)
2009 $800,000 — — — $1,500,000 — $ 84,506 $ 2,384,506
2008 $800,000 — $2,053,942(5)(6) $ 722,729 — — $ 88,078 $ 3,664,749
W. Howard Lester(7) .... 2010 $348,750 — $7,287,500(8) — — $ (3,638)(9) $716,846 $ 8,349,458
Former Chairman
of the Board and Chief
Executive Officer
2009 $975,000 — $5,705,308(10) $3,584,403(11) $2,000,000 $ 84,256(12) $484,026 $12,832,993
2008 $975,000 — $1,277,227(13) $1,335,478 — $(238,669)(14) $700,874 $ 4,049,910
Sharon L. McCollam .... 2010 $830,770 — $5,821,200 $1,524,705 $1,600,000 — $ 63,005 $ 9,839,680
Director and
Executive Vice
President, Chief
Operating and Chief
Financial Officer (PFO)
2009 $725,000 — — — $1,500,000 — $ 84,755 $ 2,309,755
2008 $725,000 — $2,053,942(5)(6) $ 864,133 — — $ 88,330 $ 3,731,405
Patrick J. Connolly ...... 2010 $579,646 — $ 311,850 $ 95,294 $ 800,000 — $ 14,897 $ 1,801,687
Director and
Executive Vice
President, Chief
Marketing Officer
2009 $570,000 — — — $ 500,000 — $ 14,897 $ 1,084,897
2008 $570,000 — $ 510,890(15) $ 502,768 — — $ 19,222 $ 1,602,880
Richard Harvey ........ 2010 $588,462 — $ 693,000 — $ 700,000 — $ 26,155 $ 2,007,617
President,
Williams-Sonoma
Brand
2009 $524,994 — — (16) — $ 600,000 — $ 31,955 $ 1,156,949
2008 $476,538 — $ 283,482 $ 314,230 — — $ 33,686 $ 1,107,936
Seth R. Jaffe ........... 2010 $381,346 — $ 297,990 — $ 300,000 — $ 16,391 $ 995,727
Senior Vice President,
General Counsel and
Secretary
2009 $375,000 — — (16) — $ 270,000 — $ 17,825 $ 662,825
2008 $369,615 — $ 149,984 $ 251,384 — — $ 22,081 $ 793,064
(1) Based on the fair market value of awards granted in fiscal 2010, fiscal 2009, and fiscal 2008. 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.
(2) Based on the fair market value of awards granted in fiscal 2010, fiscal 2009, and fiscal 2008. 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 30, 2011.
(3) Details are provided in the “Other Annual Compensation from Summary Compensation” table on page 51.
(4) Represents a special, discretionary bonus of $350,000 that was awarded to Ms. Alber in recognition of her outstanding performance and the
company’s results for fiscal 2010.
(5) Represents the fair value of an award granted on May 2, 2008, plus the incremental fair value resulting from the subsequent modification of the
award on October 28, 2008 to remove a performance-based vesting criterion. The total fiscal 2008 fair value is calculated as the sum of
(i) $471,996, the grant date fair value of the award as of May 2, 2008, and (ii) $165,946, the incremental fair value of the modified award,
computed as of October 28, 2008, the modification date.
(6) Represents the incremental fair value resulting from the modification of an award granted on January 6, 2006 and subsequently modified on
October 28, 2008 to remove a performance-based vesting criterion. The total fiscal 2008 incremental fair value is $1,416,000, computed as of
October 28, 2008, the modification date.
(7) Mr. Lester served as our Chief Executive Officer until Ms. Alber became our Chief Executive Officer on May 26, 2010.
(8) Represents the grant date fair value of an award to receive restricted stock units and cash units made on May 26, 2010, in exchange for
consulting services provided by Mr. Lester pursuant to the Retirement and Consulting Agreement entered into in connection with his
retirement. Each unit of the award entitled Mr. Lester to receive one share of the company’s common stock and a cash payment equal to
the fair market value of one share of the company’s common stock on the applicable vesting date. The units vested in monthly
installments throughout the period over which Mr. Lester provided such consulting services. The Retirement and Consulting Agreement
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