Pottery Barn 2010 Annual Report Download - page 158

Richard Harvey
The following table describes the payments and/or benefits which would have been owed by us to Mr. Harvey 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) ................................ — — $1,200,000 — —
Bonus Payment(2) ............................. — — $ 600,000 — —
Equity Awards(3) ............................. — — $2,560,119 — —
Health Care Benefits(4) ......................... — — $ 36,000 — —
(1) Based on Mr. Harvey’s base salary as of January 30, 2011.
(2) Represents 200% of the average annual bonus received by Mr. Harvey in the 24 month period prior to
January 30, 2011.
(3) Represents the sum of (i) $1,371,119 for acceleration of vesting of 42,397 restricted stock units and
(ii) $1,189,000 for acceleration of vesting of 50,000 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.
Seth R. Jaffe
The following table describes the payments and/or benefits which would have been owed by us to Mr. Jaffe 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) ................................ — — $ 382,500 — —
Bonus Payment(2) ............................. — — $ 135,000 — —
Equity Awards(3) ............................. — — $1,864,579 — —
Health Care Benefits(4) ......................... — — $ 36,000 — —
(1) Based on Mr. Jaffe’s base salary as of January 30, 2011.
(2) Represents 100% of the average annual bonus received by Mr. Jaffe in the 24 month period prior to
January 30, 2011.
(3) Represents the sum of (i) $913,379 for acceleration of vesting of 28,243 restricted stock units and
(ii) $951,200 for acceleration of vesting of 40,000 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.
W. Howard Lester
On January 25, 2010, we entered into a Retirement and Consulting Agreement (the “Retirement and Consulting
Agreement”) with W. Howard Lester, our former Chairman and Chief Executive Officer. Pursuant to the terms of
the Retirement and Consulting Agreement, Mr. Lester retired as Chairman of the Board and Chief Executive
Officer on May 26, 2010, the date of the 2010 Annual Meeting.
Pursuant to the terms of the Retirement and Consulting Agreement, Mr. Lester provided consulting services from
his retirement until his death in November 2010 and, during this consulting period, he received payments equal
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