Pier 1 2010 Annual Report Download - page 106

(1) This column represents the amount of cash compensation earned in fiscal 2010 for board and committee service.
As described in footnote 2 below, 10% of this cash compensation was deferred by each director. A pro rata
non-executive chairman of the board annual cash retainer of $37,912 was paid to Mr. Ferrari on October 22,
2009.
(2) This column represents the dollar value of Pier 1 Imports’ 25% match on director annual cash retainer fees (but
not committee chair or chairman annual retainers) deferred by each director. This amount was converted to
DSU’s as shown in the table below. The dollar amount represents the grant date fair value of such DSU’s
granted in fiscal 2010 in accordance with the Financial Accounting Standards Board’s Accounting Standards
Codification Topic 718, Compensation-Stock Compensation (formerly Statement of Financial Accounting
Standards No. 123R) (“FASB ASC Topic 718”). The number of DSU’s is calculated using the closing price of
Pier 1 Imports’ common stock on March 2, 2009, which was the date the fees were paid to each director. This
closing price represents the grant date fair value of the DSU’s.
(3) Perquisites and personal benefits aggregating less than $10,000 are not shown.
The following table shows fiscal 2010 DSU’s for each non-employee director given his or her deferral
percentage and Pier 1 Imports’ match:
Name
Deferral
%(a)
Fiscal
Year
2010
Fees
Deferred
($)
DSU’s
Converted
from
Deferred
Fees
(#)
DSU’s
Converted
from 25%
Company
Match
(#)
Dividends
Deferred
During
Fiscal Year
2010
($)
DSU’s
Converted
from
Deferred
Dividends
(#)
Aggregate
DSU’s
Owned at
Fiscal 2010
Year-End
(#)
John H. Burgoyne 10% $21,250 87,500 18,750 $0 0 193,179
Michael R. Ferrari 10% $23,541 80,830 18,750 $0 0 175,054
Robert B. Holland, III 10% $18,750 75,000 18,750 $0 0 146,284
Karen W. Katz 10% $18,750 75,000 18,750 $0 0 184,795
Terry E. London 10% $21,250 87,500 18,750 $0 0 156,691
Cece Smith 10% $18,750 75,000 18,750 $0 0 146,284
Tom M. Thomas
(resigned August 21, 2009) 10% $26,250 112,500 18,750 $0 0 0(b)
(a) Given the unprecedented stock price decline experienced by Pier1 Imports in late 2008 and early 2009, each
non-employee director elected prior to December 31, 2008 to defer only 10% of his or her fiscal 2010 cash
fees payable on March 2, 2009. If the historical deferral elections, which were as much as 100%, had
remained in place for fiscal 2010, then given the stock price for March 2, 2009 stated below, those elections
would have resulted in a depletion of shares available for grant under the Pier 1 Imports, Inc. 2006 Stock
Incentive Plan.
(b) Upon Mr. Thomas’ resignation as a director on August 21, 2009, his 276,584.44 DSU’s were exchanged for
276,584.44 shares of Pier 1 Imports’ common stock and delivered to him within the time period described
above under the caption “Fees Paid to Directors.” The closing price of Pier 1 Imports’ common stock on
August 21, 2009 was $2.44.
The closing price of Pier 1 Imports’ common stock was $0.20 on March 2, 2009, which was the date fiscal
2010 fees were paid to each director. The closing price of Pier 1 Imports’ common stock was $4.57 on October 22,
2009, which was the date the pro rata non-executive chairman of the board annual cash retainer was paid to
Mr. Ferrari. These closing prices were used to calculate the number of DSU’s to be received for deferred director
fees plus any Pier 1 Imports’ match. These closing prices also represent the grant date fair value per share of each
award in accordance with FASB ASC Topic 718.
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