Pottery Barn 2013 Annual Report Download - page 126

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5. Among the top 100 e-retailers or an operator of multiple brands.
Our Fiscal 2013 Proxy Peer Group
For fiscal 2013, our proxy peer group consisted of the following 14 public companies:
Abercrombie & Fitch Co. The Men’s Wearhouse, Inc.
American Eagle Outfitters, Inc. Nordstrom, Inc.
Ann Inc. Pier 1 Imports, Inc.
Bed Bath & Beyond Inc. Ross Stores, Inc.
Foot Locker, Inc. Saks Incorporated
The Gap, Inc. Tiffany & Co.
L Brands, Inc. Urban Outfitters, Inc.
The following table provided by Cook & Co., based on publicly available information as of March 31, 2014,
provides a financial overview of the proxy peer group companies in order to compare their revenues, net income,
and market capitalization as a group relative to the company.
Annual
Net Revenue
(in millions)
Annual
Net Income
(in millions)
Market Capitalization
(in millions)
(as of 2/2/2014)
75th Percentile ........................................ $10,637 $811 $13,595
Average ............................................. $ 6,600 $443 $ 8,018
Median .............................................. $ 4,074 $232 $ 5,664
25th Percentile ........................................ $ 3,113 $ 88 $ 2,608
Williams-Sonoma, Inc. ................................. $ 4,388 $279 $ 5,141
Changes to Our Proxy Peer Group for Fiscal 2014
For fiscal 2014 the Compensation Committee added three companies, Coach, Inc., lululemon athletica inc. and
Restoration Hardware Holdings, Inc. to the proxy peer group, as those companies are similarly sized, are
considered direct competitors in the talent marketplace and meet some of our other selection criteria.
The Men’s Wearhouse, Inc. and Saks Incorporated were removed from the peer group for fiscal 2014 as Saks
ceased to be a publicly-traded company and The Men’s Wearhouse fell below the 25th percentile of our current
metrics for revenue, market capitalization and number of employees.
Components of Our Compensation Program, 2013 Decisions and the Decision-Making Process
Our compensation program for our Named Executive Officers is made up of the four components listed below,
which are designed to create long-term value for stockholders and to attract, motivate and retain outstanding
executives.
Compensation Component Purpose
Base Salary • Provides a minimum level of fixed compensation to induce executives to join
and remain with the company.
Annual Cash Bonus • Motivates and rewards achievement toward our annual business and strategic
objectives with cash that varies based on results.
Long-Term Incentives (e.g.
equity compensation awards)
• Encourage our executive team to work toward the company’s long-term
growth, provide rewards for creation of sustained and long-term stockholder
value, and offer meaningful incentives to remain with the company.
Benefits • Enhance our compensation program with significant and market-competitive
health, welfare, financial and retirement benefits.
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