Pier 1 2011 Annual Report Download - page 123

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Business to be Acted Upon at the Meeting”). While Pier 1 Imports is aware of and understands the requirements of
Section 162(m), it does not believe that compensation decisions should be based solely upon the amount of
compensation that is deductible for federal income tax purposes. Pier 1 Imports may approve elements of
compensation for certain officers that are not fully deductible by Pier 1 Imports. For fiscal 2011, the only officer
who received compensation that was not fully deductible was Mr. Smith.
Compensation Risk
Although the majority of potential compensation provided to our executive officers is performance-based, we
do not believe that Pier 1 Imports’ compensation policies, principles, objectives and practices are structured to
promote inappropriate risk taking by our executives. We believe that the focus of Pier 1 Imports’ overall
compensation program encourages management to take a balanced approach that focuses on increasing and
sustaining Pier 1 Imports’ profitability.
Summary Compensation Table for the Fiscal Years Ended February 26, 2011, February 27, 2010 and
February 28, 2009
The following table sets forth a summary of the compensation in the past three fiscal years for services
rendered in all capacities to Pier 1 Imports and its subsidiaries by the chief executive officer, chief financial officer
and the three other most highly compensated executive officers.
Name &
Principal
Position
Fiscal
Year
Salary(3)
($)
Bonus(4)
($)
Stock
Awards(5)
($)
Option
Awards
($)
Non-Equity
Incentive
Plan
Compensation(6)
($)
Change in
Pension
Value and
Non-Qualified
Deferred
Compensation
Earnings(7)
($)
All Other
Compensation(8)
($)
Total
($)
Alexander W. Smith 2011 $1,050,000 $248,719 $ 406,250 N/A $2,100,000 $2,597,628 $ 62,172 $6,464,769
President and 2010 $1,050,000 $ 42,525 $4,359,375(1)$328,800 $1,417,500 $ 764,759 $ 38,966 $8,001,925
Chief Executive Officer 2009 $1,049,039 $ 0 N/A N/A $ 0 $ 681,873 $ 6,996 $1,737,908
Charles H. Turner 2011 $ 460,000 $ 81,722 $ 431,309 N/A $ 775,000 $ 942,011 $ 22,864 $2,712,906
Executive Vice President 2010 $ 460,000 $ 14,490 N/A N/A $ 568,000 $ 347,281 $ 6,112 $1,395,883
and Chief Financial
Officer
2009 $ 459,423 $ 0 $ 117,750 $156,375 $ 0 $ 654,707 $ 22,138 $1,410,393
Catherine David(2) 2011 $ 400,000 $ 71,063 $ 206,842 N/A $ 657,583 $ 66 $100,361 $1,435,915
Executive Vice President,
Merchandising
Gregory S. Humenesky 2011 $ 330,000 $ 58,627 $ 143,640 N/A $ 550,000 $ 262,117 $ 12,932 $1,357,316
Executive Vice President, 2010 $ 330,000 $ 10,395 N/A N/A $ 401,500 $ 104,083 $ 7,350 $ 853,328
Human Resources 2009 $ 329,423 $ 0 $ 111,750 $156,375 $ 0 $ 68,365 $ 9,300 $ 675,213
Sharon M. Leite 2011 $ 346,923 $ 61,588 $ 178,114 N/A $ 575,000 $ 26 $ 13,486 $1,175,137
Executive Vice President,
Stores
2010 $ 330,000 $ 10,395 N/A N/A $ 398,613 $ 0 $ 86,985 $ 825,993
2009 $ 329,423 $ 0 $ 111,750 $156,375 $ 0 N/A $ 24,066 $ 621,614
(1) Pursuant to the renewal and extension of Mr. Smith’s employment agreement on December 15, 2009, he
received a grant of 375,000 shares of time-based restricted stock on December 18, 2009. Additional grants of
375,000 shares of restricted stock were made to Mr. Smith on February 28, 2010 and February 27, 2011. Vesting
of one-half of the February 28, 2010 and February 27, 2011 share grants is time-based and vesting of the other
half is performance-based. An additional grant of 375,000 shares of restricted stock is to be made to Mr. Smith
on February 26, 2012, provided Mr. Smith is employed on such date. One-half of the additional share grant will
be time-based vested and the other half will be performance-based vested. Accounting rules pertaining to grants
of restricted stock required Pier 1 Imports to start expensing all 937,500 shares of the time-based restricted stock
granted and to be granted to Mr. Smith on December 15, 2009, which is the date on which the renewed and
extended employment agreement was entered and also the service inception date. On December 15, 2009, each
of the 937,500 shares was valued at $4.65 (the closing price of Pier 1 Imports’ common stock on December 15,
2009) and the total aggregate grant date fair value of the shares was included in the Summary Compensation
39