Pier 1 2008 Annual Report Download - page 119

The following table sets forth information relating to grants of plan-based awards during the fiscal year
ended March 1, 2008 to the executive officers named in the Summary Compensation Table. Pier 1 Imports
distributes long-term incentive awards as soon as possible following receipt of all required approvals. Stock
options are granted at the closing price of Pier 1 Imports’ common stock on the date of the grant. Pier 1
Imports’ practice is for the grants of stock options and restricted stock to be made on the day following board
of directors approval allowing Pier 1 Imports to provide information to the market, if any, that may require
disclosure as a result of Pier 1 Imports’ board of directors meeting at which the grants were approved. Delays
in the grant date may occur pending quarterly earnings releases and conference calls or as otherwise directed
by the board of directors. For fiscal 2008, the grant date was delayed pending Pier 1 Imports’ fourth quarter
and year-end earnings release and conference call.
Name
Grant
Date
Meeting
Date
Threshold
($)
Target
($)
Maximum
($)
Threshold
(#)
Target
(#)
Maximum
(#)
All other
Stock
Awards:
Number
of Shares
of Stock
or Units(2)
(#)
All Other
Option
Awards:
Number of
Securities
Underlying
Options(3)
(#)
Exercise
or Base
Price of
Option
Awards(4)
($/Share)
Grant
Date Fair
Value of
Stock and
Option
Awards(5)
($)
Estimated Future Payouts
Under Non-Equity
Incentive Plan Awards(1)
Estimated Future Payouts
Under Equity Incentive
Plan Awards
Alexander W. Smith . . . . . . N/A N/A N/A N/A N/A — N/A — N/A N/A N/A N/A
Charles H. Turner . . . . . . . . 04/13/2007 03/27/2007 $32,250 $322,500 $483,750 — N/A — 12,000 60,000 $7.77 $293,190
Gregory S. Humenesky . . . . . 04/13/2007 03/27/2007 $22,500 $225,000 $337,500 — N/A — 12,000 60,000 $7.77 $293,190
Jay R. Jacobs . . . . . . . . . . 04/13/2007 03/27/2007 $29,250 $292,500 $438,750 — N/A — 12,000 60,000 $7.77 $293,190
Phil E. Schneider
(Employment ended
August 6, 2007) . . . . . . . 04/13/2007 03/27/2007 N/A N/A N/A — N/A — 12,000 60,000 $7.77 $293,190
David A. Walker . . . . . . . . 04/13/2007 03/27/2007 $25,500 $255,000 $382,500 — N/A — 12,000 60,000 $7.77 $293,190
(1) These columns show the potential value of the payout for each named executive officer, other than
Mr. Smith, under the short-term incentive plan described above when the threshold, target or maximum
amount of the Profit Goal for fiscal 2008 is met provided the named executive officer is employed at the
end of the fiscal year. Mr. Schneider was not employed at the end of the fiscal year. The target calculation
is based on the named executive officer’s fiscal 2008 annual base salary as of the last day of the fiscal
year — March 1, 2008. The fiscal 2008 annual base salary in effect for cash incentive award calculations
for Mr. Turner was $430,000; for Mr. Humenesky was $300,000; for Mr. Jacobs was $390,000; and for
Mr. Walker was $340,000.
(2) This column shows the number of time based restricted stock awards granted to the named executive
officer, other than Mr. Smith, in fiscal 2008 pursuant to the Pier 1 Imports 2006 Stock Incentive Plan.
These awards vest 33%, 33% and 34% respectively on each anniversary of the grant date provided that the
named executive officer is employed on the vesting date. The restricted stock award agreement permits an
employee to satisfy his income tax withholding obligations up to the minimum statutory rate by electing
to require Pier 1 Imports to purchase unrestricted shares otherwise deliverable. Mr. Schneider forfeited this
restricted stock award upon his termination of employment with Pier 1 Imports on August 6, 2007.
(3) This column shows the number of non-qualified stock options granted to each named executive officer,
other than Mr. Smith, in fiscal 2008 pursuant to the Pier 1 Imports 2006 Stock Incentive Plan. All of these
options become exercisable in annual installments of 25% on each of the four anniversaries of the date of
grant, except that they become fully exercisable upon retirement, death, or disability. The stock option
award agreement permits an employee to tender previously owned shares to pay the exercise price of an
option and permits an employee to satisfy his income tax withholding obligations up to the minimum statu-
tory rate by the delivery of previously owned shares or the withholding of shares otherwise issuable upon
exercise of the option. Options terminate (i) at the time of termination of employment if the employment
ends without Pier 1 Imports’ consent, (ii) the earlier of expiration of the option term or the 91st day after
the date of termination in the case of termination with the consent of Pier 1 Imports, (iii) the earlier of
expiration of the option term or one year after death or disability, or (iv) the earlier of expiration of the
option term, or three years after retirement (defined to be age 65 or over, or age 55 or over with at least
15 years of employment with Pier 1 Imports). Upon retirement, the option award becomes fully vested.
Mr. Schneider’s employment with Pier 1 Imports was terminated on August 6, 2007 and his options
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