Pier 1 2007 Annual Report Download - page 93

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committee and board approve the fiscal year compensation in March of each year with an effective date in
April. Implementation of an equity grant portion of the compensation for the year occurs after board and
compensation committee approval. Pier 1 management, from time to time, retains outside consultants for
assistance and guidance in the formulation of new compensation programs and the modification of existing
compensation programs. In fiscal 2007, Pier 1 retained Hewitt Associates LLC to provide management with
market data for base pay and short-term and long-term incentive comparisons from a peer group of retail
companies. Market data utilized for compensation decisions was adjusted by Hewitt to account for size
differences among the comparable companies through the use of regression analysis. Hewitt research, surveys
and recommendations were included in matters presented to the compensation committee.
For fiscal 2008, the compensation committee has decided that it will retain an outside consultant to assist
in review and analysis of ongoing executive officer and non-employee director compensation, equity-based
plans, perquisites and retirement plans. That engagement and consulting with Pier 1 will be expressly directed
and overseen by the compensation committee. It is expected, however, that the outside consultant will continue
to provide consulting on matters similar to prior years.
Directors Attendance at Board and Committee Meetings and at the Annual Meeting of Shareholders
In fiscal 2007, each director attended at least 75% of the total number of board meetings and meetings of
the board committee or committees on which he or she served which were held during the time of their
service as a director and/or committee member. There were no board meetings after February 19, 2007 through
March 3, 2007 which was the end of fiscal 2007. Although Pier 1 has no formal policy on the matter, all
directors are encouraged to attend Pier 1’s annual meeting of shareholders. Last year, all then serving directors
attended Pier 1’s annual meeting of shareholders other than Mrs. Katz, who was out of the country. Committee
memberships, the number of meetings of the full board and each committee, and each director’s dates of
service for fiscal 2007 are shown in the table below.
Name
Board of
Directors
Executive
Committee
Nominating and
Corporate
Governance
Committee
Audit
Committee
Compensation
Committee
John H. Burgoyne
02/26/2006 to 03/03/2007 ........... Member Member
Michael R. Ferrari
02/26/2006 to 03/03/2007 ........... Member Member
02/01/2007 to 03/03/2007 ........... Chairman
Marvin J. Girouard(1)
02/26/2006 to 02/19/2007 ........... Chairman Member
James M. Hoak, Jr.(2)
02/26/2006 to 03/03/2007 ........... Member Member
02/26/2006 to 01/31/2007 ........... Chairman Chairman
02/01/2007 to 03/03/2007 ........... Member Chairman
Karen W. Katz
02/26/2006 to 03/03/2007 ........... Member
02/26/2006 to 01/31/2007 ........... Member Member
02/01/2007 to 03/03/2007 ........... Member
Terry E. London
02/26/2006 to 03/03/2007 ........... Member
02/26/2006 to 01/31/2007 ........... Member
02/01/2007 to 03/03/2007 ........... Chairman
Alexander W. Smith(3)
02/19/2007 to 03/03/2007 ........... Member Member
Tom M. Thomas
02/26/2006 to 02/18/2007 ........... Member
02/19/2007 to 03/03/2007 ........... Chairman
02/26/2006 to 01/31/2007 ........... Chairman
02/26/2006 to 03/03/2007 ........... Chairman Member
Number of Meetings in Fiscal Year
2007........................... 12 4 3 10 4
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