Pier 1 2014 Annual Report Download - page 113

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EXECUTIVE COMPENSATION
Executive Compensation Components
Table 2 below shows the allocation of the direct compensation components of Pier 1 Imports’ executive compensation program
for fiscal 2014 among base salary, short-term incentives and long-term equity incentives for the CEO and for the other NEOs as
a group:
Table 2
Fiscal 2014 Targeted Direct Compensaon
NEOCEO
Base Salary Long-Term Incenve (Stock)Short-Term Incenve (Cash)
36%
28%
36%
74%
12%
14%
Base Salary
N
O
A
CROSS
-T
HE
-B
OARD
I
NCREASES
In fiscal 2014, Pier 1 Imports’ chief executive officer and human resources compensation group once again recommended to the
compensation committee only targeted increases to certain executives and no “across-the-board” base salary increases for Pier
1 Imports’ NEOs. The compensation committee agreed to support management’s recommendation and approved targeted
increases in base salary for two of the NEOs, as shown in Table 3 below. Mr. Smith’s base salary is governed by his employment
agreement, as described below at “Chief Executive Officer Compensation.”
Table 3
Named Executive Officer
(other than CEO)
Fiscal 2013
Base Salary
($)
Fiscal 2014
Base Salary
($)
Percentage
Increase
(%)
Charles H. Turner $475,000 $475,000 0.0%
Michael R. Benkel $330,000 $330,000 0.0%
Catherine David $410,000 $420,000 2.4%
Sharon M. Leite $350,000 $360,000 2.9%
Generally, Pier 1 Imports targets base salary at the 50th percentile for comparable skills. The aspects of individual performance
that may be considered in the determination of each executive’s base salary include the individual’s contribution to achieving
operating goals, expense control and reduction, profitability and performance as compared to planned results. Pier 1 Imports
recognizes individual experience, skill, level of responsibility and performance over time to set base salary levels. Changes to
base salary may be made based on individual and company performance, pay in relation to peers for executive compensation
purposes, or pay “at market” within the context of the national retail market and increased responsibility.
Short-Term Incentive
N
O
F
ISCAL
2014 S
HORT
-T
ERM
I
NCENTIVES
P
AID
Prior to fiscal 2014, the Pier 1 Imports’ fiscal 2013 short-term incentive program for NEOs had a quarterly incentive component.
For the fiscal 2014 short-term incentive program, NEOs were removed from the quarterly incentive opportunity and 100% of their
PIER 1 IMPORTS, INC. 2014 Proxy Statement 35