Pier 1 2008 Annual Report Download - page 123

2007, the forfeiture restrictions lapsed on 3,630 shares with a market price of $8.31 as of that date. On
July 1, 2007, the forfeiture restrictions lapsed on 5,940 shares with a market price of $8.49 as of that date.
Pension Benefits Table for the Fiscal Year Ended March 1, 2008
Pier 1 Imports’ chief executive officer and the named executive officers participate in a plan which was
adopted by Pier 1 Imports in 1995 and is known as the Supplemental Retirement Plan. The plan provides upon
death, disability, or retirement, or termination of employment (including termination of employment in certain
circumstances as a result of a change in control) for reasons other than cause (as defined in the plan) each
participant will receive a life annuity based on an annual benefit which generally equals 60% of the
participant’s highest three-year average of annual salary and bonus offset by Social Security retirement
benefits. As shown in Pier 1 Imports’ Form 8-K filed on November 15, 2007, Mr. Smith has been offered, and
he has elected, a lump-sum payment option of the actuarial equivalent of his benefit. As shown in Pier 1
Imports’ Form 8-K filed on April 24, 2008, Messrs. Turner, Jacobs and Walker have been offered, and each
has elected, a lump-sum payment option of the actuarial equivalent of his benefit. Effective April 20, 2008,
Mr. Humenesky has been offered, and he has elected, a lump-sum payment option of the actuarial equivalent
of his benefit. For the named executive officers (other than Mr. Smith), the annual life annuity amount cannot
exceed $500,000. Mr. Smith’s benefit calculation is not subject to this limitation. Participation in the plan for
Pier 1 Imports’ chief executive officer is governed by certain provisions of his employment agreement, which
are outlined in the Employment Agreements discussion of the Compensation Discussion and Analysis above.
For certain participants the plan also provides that in the event of disability or retirement, those participants
and their dependents have the lifetime right to participate in comparable major medical and hospitalization
insurance coverage as made available generally to Pier 1 Imports employees and their dependents. If the
executive elects such coverage he must pay a portion of the total premium. In the event of termination of
employment (for reasons other than cause) prior to retirement eligibility, the participant and his dependents
have the right to participate in such comparable major medical and hospitalization insurance coverage during
the 15 years immediately after the date the participant attains age 65. If the participant elects such coverage he
must pay the total premium. Termination of employment in certain circumstances as a result of a change in
control may constitute retirement under the plan.
The following table shows the present value of each named executive officer’s total accumulated benefit
under Pier 1 Imports’ Supplemental Retirement Plan as of the fiscal year ended March 1, 2008.
Name
Number of Years
Credited Service(1)
(#)
Present Value of
Accumulated
Benefit
($)
Payments
During Last
Fiscal Year
($)
Alexander W. Smith . . . ........................... 8.67 $3,883,868(2) $ 0
Charles H. Turner................................ 16 $1,855,880 $ 0
Gregory S. Humenesky ............................ 4 $ 11,799 $ 0
Jay R. Jacobs ................................... 30 $2,439,105 $ 0
Phil E. Schneider (Employment ended August 6, 2007) .... 22 $2,005,059(3) $74,673(4)
David A. Walker ................................ 38 $1,258,690 $ 0
(1) With the exception of Mr. Smith, the number of years of credited service for plan purposes equals the
years of credited vesting service as determined by Pier 1 Imports’ 401(k) plan for the participant, regard-
less of whether the participant is actually participating in the 401(k) plan. In all cases except Mr. Smith,
the years of credited service shown equals the named executive officer’s years of employment with Pier 1
Imports. Pursuant to his employment agreement, Mr. Smith was entitled to participate in the Supplemental
Retirement Plan so as to achieve the same level of benefit as his accrued benefit under the supplemental
executive retirement plan of his former employer. Therefore, Mr. Smith was credited with 10 years of plan
participation upon enrollment in the plan and 6.67 years of credited service as of his employment date
with Pier 1 Imports. The additional 6.67 years of credited service account for $3,104,410 of his total
present value of accrued benefits of $3,883,868. In accordance with Pier 1 Imports’ 401(k) plan, and as of
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