Pier 1 2014 Annual Report Download - page 107

Download and view the complete annual report

Please find page 107 of the 2014 Pier 1 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

EXECUTIVE COMPENSATION
EXECUTIVE COMPENSATION
Compensation Committee Report
The compensation committee has reviewed and discussed with management the Compensation Discussion and Analysis below.
Based on the review and discussion, the compensation committee has recommended to the board of directors that the
Compensation Discussion and Analysis be included in Pier 1 Imports’ 2014 proxy statement.
COMPENSATION COMMITTEE
Cheryl A. Bachelder, Chair
John H. Burgoyne
Brendan L. Hoffman
Terry E. London
Cynthia P. McCague
Michael A. Peel
Compensation Discussion and Analysis
This Compensation Discussion and Analysis disclosure provides material information about Pier 1 Imports’ compensation
policies, principles, objectives and practices for its named executive officers (“NEO”) for fiscal 2014 and puts into perspective the
tabular disclosures and related narratives that follow it.
Executive Summary
No Fiscal 2014 Short-Term Incentives Paid
Pier 1 Imports did not meet its internal financial targets for fiscal 2014 and, as a result, none of its NEOs earned any payments
under the fiscal 2014 short-term incentive program. However, the executive officers’ decisions and leadership over the past
several years positioned Pier 1 Imports to deliver improved operations and profitable operating performance during fiscal 2014.
Detailed below are key business achievements during fiscal 2014, an overview of Pier 1 Imports’ executive compensation
philosophy and some highlights of Pier 1 Imports’ chief executive officer (“CEO”) compensation in fiscal 2014.
Fiscal 2014 Business Results Highlights:
•Net sales for the 52-week fiscal 2014 year expanded 3.9% to $1.772 billion, compared to net sales for the 53-week fiscal
2013 year of $1.705 billion;
•Delivered a 2.4% annual comparable store sales increase in fiscal 2014 on a 52-week basis;
•Grew sales through e-Commerce enabled website, www.pier1.com, which comprised 4% of total sales in fiscal 2014;
•Delivered gross profit of $745.6 million, or 42.1% of sales;
•Generated $159.2 million of cash from operations in fiscal 2014, in addition to the $124.0 million of cash generated from
operations in fiscal 2013;
•Distributed approximately $21.7 million to shareholders through a $0.05 quarterly cash dividend paid during the first three
quarters, which was subsequently increased by 20% to $0.06 per share in December 2013 and paid in the fourth quarter;
•Utilized $203.9 million to repurchase approximately 9% of Pier 1 Imports’ outstanding common stock. As of March 1, 2014,
$96.1 million remained available for repurchase under Pier 1 Imports’ $200 million share repurchase program authorized in
October 2013, and the program was completed subsequent to the end of fiscal 2014; and
•Upgraded and invested in information technology and systems in support of ‘1 Pier 1’ which included successful
implementation of a new point-of-sale system.
PIER 1 IMPORTS, INC. 2014 Proxy Statement 29