Pier 1 2013 Annual Report Download - page 127

Approximately 25% of the restricted stock grants were TSR performance-based shares which cliff vest within
the ranges as shown on Table 7 in the Compensation Discussion and Analysis above within thirty days of the end of
fiscal 2015, provided the NEO is employed on the vesting date. Vesting is based on Pier 1 Imports’ percentile
ranking within the rankings of the annual equivalent return of the TSR of Pier 1 Imports and a peer group using the
average closing stock price of Pier 1 Imports and the peer group companies during the twenty trading days at the
beginning of fiscal 2013 and the average closing stock price during the twenty trading days at the end of fiscal 2015.
The peer group is comprised of the companies in the Russell 1000 Specialty Retail Index, with the addition of any
other specialty retailers in Pier 1 Imports’ peer group for executive compensation purposes.
TSR performance-based restricted stock grants at target for fiscal 2013 to Mr. Turner were 6,857 shares
(17,142 maximum), to Mr. Benkel were 4,764 shares (11,910 maximum), to Ms. David were 5,919 shares (14,797
maximum) and to Ms. Leite were 5,053 shares (12,632) maximum.
The restricted stock awards (performance-based and time-based) granted in fiscal 2013 are not eligible to
receive cash dividends prior to vesting.
Also, and as set forth in the Compensation Discussion and Analysis above, Mr. Smith received a grant of
187,500 shares of performance-based restricted stock under the Pier 1 Imports, Inc. 2006 Stock Incentive Plan on
February 26, 2012, which vest 62,500 shares upon Pier 1 Imports satisfying the Profit Goal target established by the
compensation committee for fiscal year 2013 and 62,500 shares in each of the following two fiscal years upon Pier 1
Imports satisfying the Profit Goal target established by the compensation committee for the respective fiscal year,
such achievement to be determined upon the filing of Pier 1 Imports’ annual report on Form 10-K for the applicable
fiscal year and, provided that for each fiscal year Mr. Smith is employed on the last day of each such fiscal year. If a
Profit Goal target for a particular fiscal year is partially met, then the number of shares that could vest is adjusted as
follows (with interpolation between the target levels):
100% of the Profit Goal target – 62,500 shares (100%);
96% of the Profit Goal target – 56,250 shares (90%);
92% of the Profit Goal target – 50,000 shares (80%);
88% of the Profit Goal target – 43,750 shares (70%);
84% of the Profit Goal target – 37,500 shares (60%); and
80% of the Profit Goal target – 31,250 shares (50%).
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 years’ Profit Goal targets.
The table below also includes 62,500 of the performance-based restricted shares granted to Mr. Smith on
February 28, 2010 and 62,500 of the performance-based restricted shares granted to Mr. Smith on February 27,
2011, which vest upon Pier 1 Imports satisfying the Profit Goal target established by the compensation committee
for fiscal 2013.
Mr. Smith’s February 27, 2011 and February 26, 2012 restricted stock awards (performance-based and time-
based shares) are not eligible to receive cash dividends prior to vesting.
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