Pottery Barn 2010 Annual Report Download - page 157

The following table describes the payments and/or benefits which would have been owed by us to Ms. McCollam
as of January 30, 2011, 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) ........ $850,000 $850,000 $ 1,700,000 Through date of death $212,500(2)
Lump Sum Payment .... $680,000 $680,000 — — —
Bonus Payment(3) ..... — — $ 1,500,000 — —
Equity Awards(4) ...... — — $11,338,655 — —
Health Care Benefits . . . $ 8,010(5) $ 8,010(5) $ 36,000(6) — —
Other Perquisites ...... $150,000(7) $150,000(7) — — —
(1) Based on Ms. McCollam’s base salary as of January 30, 2011.
(2) Payment of 13 weeks of salary.
(3) Represents 200% of the average annual bonus received by Ms. McCollam in the 24 month period prior to
January 30, 2011.
(4) Represents the sum of (i) $7,359,905 for acceleration of vesting of 227,579 restricted stock units and
(ii) $3,978,750 for acceleration of vesting of 315,500 shares underlying outstanding option awards. Value is
based on a stock price of $32.34, the closing price of our common stock on January 28, 2011, the last
business day of fiscal 2010.
(5) Based on a monthly health insurance premium of $445 to be paid by the company for 18 months, which is
the period provided under COBRA.
(6) Based on a monthly payment of $3,000 to be paid by the company for 12 months in lieu of continued
employment benefits.
(7) Value of outplacement services based on current estimate of costs for these services.
Patrick J. Connolly
The following table describes the payments and/or benefits which would have been owed by us to Mr. Connolly
as of January 30, 2011 if his employment had been terminated in various situations.
Compensation and Benefits
For Good
Reason
Involuntary
Without Cause
Change-in-
Control Death Disability
Base Salary(1) ................................ — — $1,162,800 — —
Bonus Payment(2) ............................. — — $ 500,000 — —
Equity Awards(3) ............................. — — $2,764,821 — —
Health Care Benefits(4) ......................... — — $ 36,000 — —
(1) Based on Mr. Connolly’s base salary as of January 30, 2011.
(2) Represents 200% of the average annual bonus received by Mr. Connolly in the 24 month period prior to
January 30, 2011.
(3) Represents the sum of (i) $819,108 for acceleration of vesting of 25,328 restricted stock units and
(ii) $1,945,713 for acceleration of vesting of 99,375 shares underlying outstanding option awards. Value is
based on a stock price of $32.34, the closing price of our common stock on January 28, 2011, the last
business day of fiscal 2010.
(4) Based on a monthly payment of $3,000 to be paid by the company for 12 months in lieu of continued
employment benefits.
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