Pottery Barn 2011 Annual Report Download - page 134

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COMPENSATION DISCUSSION AND ANALYSIS
Executive Compensation Summary
Pay for Performance
The cornerstone of our executive compensation program is pay for performance. Accordingly, while we pay
competitive base salaries and other benefits, the majority of our named executive officers’ compensation
opportunity is based on incentive pay.
Fiscal 2011 CEO’s Target
Total Direct Compensat ion
Fiscal 2011 Other NEO’s Target
Total Direct Compensat ion
(Excluding CEO)
Base Pay
14%
Long-
Term
Incent ive
65%
Annual
Incent ive
21%
Base Pay
25%
Long-
Term
Incent ive
49%
Annual
Incent ive
26%
Executive Compensation Best Practices
Our Compensation Committee, assisted by its independent compensation consultant, Frederic W. Cook & Co.,
Inc., or Cook & Co., stays informed of developing executive compensation best practices and strives to
implement them. In this regard, our named executive officer compensation programs include:
• Adopting an annual Say on Pay advisory vote, commencing in 2011 and continuing in this Proxy
Statement consistent with the direction of 90% of stockholder votes cast in 2011 and consistent with
management’s recommendation to our stockholders;
• Establishing share ownership guidelines for executive officers in 2011;
• Establishing share ownership guidelines for our non-employee directors in 2007;
• Providing no golden parachute excise tax gross-up or other tax gross-ups for our named executive
officers;
• Providing no single-trigger equity compensation vesting on a change of control and instead providing
double-trigger vesting (triggered upon certain terminations of employment following a change of control)
for equity grants made to our named executive officers;
• Commencing in 2010, not permitting personal use of our corporate aircraft; and
• Engaging Cook & Co. to perform an annual risk analysis with respect to the company’s compensation
programs and policies, including for non-executive officers.
38