Pier 1 2011 Annual Report Download - page 119

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With respect to the number of performance-based shares that vest based on satisfying the targeted Profit Goal
for a given fiscal year, vesting will occur pursuant to the following schedule (with interpolation between the levels):
100% of the Profit Goal target – 100% of the shares;
96% of the Profit Goal target – 90% of the shares;
92% of the Profit Goal target – 80% of the shares;
88% of the Profit Goal target – 70% of the shares;
84% of the Profit Goal target – 60% of the shares; and
80% of the Profit Goal target – 50% of the shares.
Over each three-year performance (vesting) period, if the targeted Profit Goal is not satisfied in any fiscal year,
those performance-based shares that do not vest may still vest if the sum of consecutive years’ Profit Goals equals
or exceeds the sum of the individual consecutive fiscal year Profit Goal targets.
The long-term restricted stock award potential of a named executive officer was generally targeted between
50% – 70%, depending on the officer, of his or her fiscal 2011 annual base salary if the cumulative three-year Profit
Goal target was reached. A summary of the long-term incentive performance-based restricted stock awards granted
to the named executive officers in fiscal 2011 is included in Table 5 below.
Table 5
Named Executive Officer Performance-
Based Shares
Granted
(#)
Fiscal Year
Performance
Period
Performance-Based
Shares Vesting
(#)
Charles H. Turner 24,000
FY 2011
FY 2012
FY 2013
7,920
7,920
8,160
Catherine David 18,000
FY 2011
FY 2012
FY 2013
5,940
5,940
6,120
Gregory S. Humenesky 12,500
FY 2011
FY 2012
FY 2013
4,125
4,125
4,250
Sharon M. Leite 15,500
FY 2011
FY 2012
FY 2013
5,115
5,115
5,270
The Profit Goal for fiscal 2011 of $60,000,000 was exceeded as shown in Table 2 above and 33% of the
performance-based shares vested upon the date of filing of Pier 1 Imports’ annual report on Form 10-K for fiscal
2011.
Pier 1 Imports’ chief executive officer, Mr. Smith, did not participate in the fiscal 2011 long-term incentive
equity award given his grants of restricted stock pursuant to his renewed and extended employment agreement
described below.
Other Compensation – Pier 1 Imports reserves the right to pay discretionary bonuses outside of the short-term
incentive program. No employee has a guaranteed right to any discretionary bonus as a substitute for a short-term
incentive cash award in the event performance targets are not met. Given the exceptional results for fiscal 2011 as
reported above, the compensation committee, with the board of directors’ concurrence, on March 25, 2011 awarded
each named executive officer a discretionary bonus for their contributions towards Pier 1 Imports’ exceeding the
fiscal 2011 financial expectations. Those discretionary bonus amounts are shown for Fiscal Year 2011 in the table
included below under the caption “Summary Compensation Table for the Fiscal Years Ended February 26,
2011, February 27, 2010 and February 28, 2009.”
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