Pottery Barn 2012 Annual Report Download - page 139

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(4) Represents the sum of (i) $15,056,759 for acceleration of vesting of 334,446 restricted stock units and
(ii) $2,116,332 for acceleration of vesting of 193,092 shares underlying outstanding option awards. Value is
based on a stock price of $45.02, the closing price of our common stock on February 1, 2013, the last
business day of fiscal 2012.
(5) Represents the sum of (i) $22,841,122 for acceleration of vesting of 507,355 restricted stock units and
(ii) $2,309,498 for acceleration of vesting of 239,638 shares underlying outstanding option awards. Value is
based on a stock price of $45.02, the closing price of our common stock on February 1, 2013, the last
business day of fiscal 2012.
(6) Based on a monthly payment of $3,000 to be paid by the company for 18 months or 12 months, as
applicable, in lieu of continued employment benefits.
Sharon L. McCollam
In connection with Ms. McCollam’s retirement effective March 6, 2012, we entered into a Separation Agreement
and General Release with Ms. McCollam. Pursuant to the agreement, Ms. McCollam continued to receive her
base salary of $875,000 for a period of one year, an additional lump sum amount equal to 80% of base salary (or
$700,000), a cash payment of $1,300,000 in satisfaction of Ms. McCollam’s annual bonus, health care coverage
for up to 18 months, and outplacement services. We also agreed to accelerate the vesting of 131,060 stock-settled
stock appreciation rights scheduled to vest during March, April and November 2012, and 17,579 restricted stock
units scheduled to vest in May 2012 in exchange for a general release of claims in favor of the company.
The following table describes the payments and/or benefits that were payable to Ms. McCollam as of March 6,
2012, the effective date of Ms. McCollam’s retirement.
Compensation and Benefits Amount
Base Salary(1) ................................... $ 875,000
Lump Sum Payment(2) ............................ $ 700,000
Bonus Payment(3) ................................ $1,300,000
Equity Awards(4) ................................ $3,018,698
Dividend Equivalent Payments(5) ................... $ 37,795
Health Care Benefits(6) ............................ $ 8,838
Other Perquisites(7) ............................... $ 150,000
(1) Represents one year of Ms. McCollam’s base salary as of March 6, 2012.
(2) Represents 80% of Ms. McCollam’s base salary as of March 6, 2012.
(3) Represents satisfaction of Ms. McCollam’s annual bonus.
(4) Represents the sum of (i) $2,367,923 for the acceleration of vesting of 131,060 stock-settled stock
appreciation rights and (ii) $650,775 for the acceleration of vesting of 17,579 restricted stock units, which
represents the fair value of these awards as of March 15, 2012, the effective date of the acceleration in
connection with Ms. McCollam’s separation agreement.
(5) Represents dividend equivalent payments on 17,579 restricted stock units awarded to Ms. McCollam prior
to retirement and accelerated pursuant to the separation agreement.
(6) Based on a monthly health insurance premium of $491 payable by the company for up to 18 months, which
is the period provided under COBRA.
(7) Value of outplacement services made available to Ms. McCollam.
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