Pier 1 2010 Annual Report Download - page 131

(c) This column reports the reimbursement paid to Mr. Benkel for his moving and relocation expenses from his
residence in Alamo, California to Fort Worth, Texas. This column also reports $53,792 reimbursement paid to
Ms. Leite for her moving and relocation expenses from her residence in Columbus, Ohio to Fort Worth, Texas,
and travel expenses of $6,550 paid by Pier 1 Imports for her travel between Columbus, Ohio and Fort Worth,
Texas during her period of relocation.
(d) This column reports $30,000 paid to Mr. Smith’s law firm pursuant to his renewed and extended employment
agreement for legal fees and costs incurred by Mr. Smith in connection with the negotiation and implementation
of the renewal and extension.
Grants of Plan-Based Awards for the Fiscal Year Ended February 27, 2010
As set forth in the Compensation Discussion and Analysis above, during fiscal 2010 Pier 1 Imports granted
short-term cash incentive awards pursuant to the Pier 1 Imports, Inc. 2006 Stock Incentive Plan to the named
executive officers. Quarterly and annual cash incentive awards are paid if Pier 1 Imports attains certain quarterly
and annual targeted levels of adjusted consolidated operating cash earnings before interest, taxes, depreciation, and
amortization from all domestic and international operations, but not including discontinued operations, unusual or
non-recurring charges nor recurring non-cash items, each as determined by the compensation committee, or a
subcommittee. For discussion purposes we refer to this measure as the Profit Goal. The participant must be
employed at the end of the applicable quarter to receive any quarterly cash incentive award and also at the end of the
fiscal year to receive any annual cash incentive award. An executive’s cash incentive award potential is expressed as
a percentage of his or her annual base salary for the fiscal year. The quarterly cash incentive award potential for
Mr. Smith was 11.25% of his annual base salary, for Messrs. Turner and Humenesky and Ms. Leite was 8.75% of
their annual base salary, and for Mr. Benkel was 6.25% of his annual base salary. The annual cash incentive award
potential for Mr. Smith was 45% of his annual base salary, for Messrs. Turner and Humenesky and Ms. Leite was
35% of their respective annual base salary, and for Mr. Benkel was 25% of his annual base salary.
Also, and as set forth in the Compensation Discussion and Analysis above, during fiscal 2010 Pier 1 Imports
granted under the Pier 1 Imports, Inc. 2006 Stock Incentive Plan long-term cash incentive awards to the named
executive officers, other than Mr. Smith. These cash performance awards are payable if Pier 1 Imports attains the
cumulative Profit Goal for fiscal years 2010, 2011 and 2012. Each year during the three-year period, a participant
will earn one-third of the award if Pier 1 Imports attains the annual Profit Goal for the fiscal year. All awards earned
under the long-term cash incentive are payable at the end of fiscal year 2012 provided the participant is employed
on such date. The cash incentive award payable if Pier 1 Imports attains the cumulative Profit Goal is not dependent
on the attainment of the annual Profit Goals. The long-term cash incentive award potential of an eligible named
executive officer is 50% of his or her fiscal 2010 annual base salary if the cumulative three-year Profit Goal is
reached, other than Mr. Turner whose award potential is approximately 55%. Mr. Smith did not participate in the
long-term cash incentive award given his employment inducement stock option award based on Pier 1 Imports’
performance for fiscal 2010 as described in the Compensation Discussion and Analysis above.
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