Pottery Barn 2013 Annual Report Download - page 122

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Overview of 2013 Compensation Decisions
In fiscal 2013 we made significant progress in advancing our business and strategic objectives. Our
compensation decisions in fiscal 2013 were intended to reward the achievements of fiscal 2012, drive strong
performance in fiscal 2013, provide incentives for long-term growth and retain our key executives. These
decisions included:
•Base Salaries. Certain executives received base salary increases to position them more appropriately in
light of demonstrated strong performance and increased responsibilities for fiscal 2013. The base salary
of our Chief Executive Officer remained unchanged.
•Annual Bonuses. Our Named Executive Officers earned bonus payouts ranging from 117% of target to
180% of target based on the company’s and each executive’s individual performance for fiscal 2013.
Target cash bonus percentages for fiscal 2013 remained unchanged from fiscal 2012, with the exception
of the Chief Financial Officer’s target, which was increased in light of increased experience and
responsibility.
•Long-Term Incentives. We granted restricted stock units, or RSUs, to our Named Executive Officers with
a one-year performance-based vesting requirement and a time-based vesting schedule of 25% per year
over a four-year period. Certain of these executives received larger grants in fiscal 2013 in light of
increased responsibilities and strong performance.
The charts below illustrate the proportion of each element of our Named Executive Officers’ and our Chief
Executive Officer’s fiscal 2013 compensation as reported in the Summary Compensation Table on page 41.
Fiscal 2013 CEO
Target Total Direct Compensation
Base Pay
13%
Annual
Incentive
19%
Long-Term
Incentive
68%
Fiscal 2013 Other NEO
Target Total Direct Compensation
(Excluding CEO)
Base Pay
24%
Annual
Incentive
24%
Long-Term
Incentive
52%
Overview of Chief Executive Officer Compensation
Since becoming Chief Executive Officer in 2010, Ms. Alber’s leadership of the company has driven year-over-
year gains in revenue, profitability, EPS and total stockholder return. The compensation of our Chief Executive
Officer is designed to pay for performance; 87% of Ms. Alber’s total compensation opportunity for fiscal 2013
was comprised of variable incentive-based compensation, which aligns with and advances stockholders’
interests. Listed below are the main elements of pay and a summary of the Compensation Committee’s decisions
related to the compensation of our Chief Executive Officer for fiscal 2013.
•Base Salary. There was no base salary increase for fiscal 2013.
•Annual Bonus. Annual bonus for fiscal 2013 was paid at 179% of target, based on strong financial
performance and outstanding execution of strategic objectives.
•Long-Term Incentives. A long-term incentive award of 131,307 RSUs with a one-year performance-based
vesting requirement and a time-based vesting schedule of 25% per year over a four-year period was
granted.
30