Pier 1 2014 Annual Report Download - page 126

Download and view the complete annual report

Please find page 126 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
During fiscal 2011, BRP II was closed to further deferral elections by participants. The final participant contributions and Pier 1
Imports matching contributions to BRP II were credited to the plan in fiscal 2012. Account balances in BRP II will continue to
earn interest at an annual rate as described above. Effective January 1, 2011, the Pier 1 Imports, Inc. Deferred Compensation
Plan (“DCP”) described below was adopted.
•Pier 1 Imports, Inc. Deferred Compensation Plan — The DCP permits select members of management and highly
compensated employees of Pier 1 Imports to defer up to 50% of their compensation (generally W-2 earnings). Participants’
compensation deferrals and earnings on those deferrals are fully vested. No loans are permitted. Pier 1 Imports’ matching
contribution is (i) 100% of the first one percent of the participant’s compensation deferral, and (ii) 50% of the next four percent
of the participant’s compensation deferral. Matching contributions and the earnings on those contributions are subject to the
same vesting requirements as Pier 1 Imports’ 401(k) retirement plan regardless of whether the participant is actually
participating in the 401(k) plan. The 401(k) plan’s vesting schedule is 20% per year of service (as defined in the plan)
beginning with two years of service. Participants are fully vested in Pier 1 Imports’ matching contributions plus earnings at six
years of service with Pier 1 Imports.
Pier 1 Imports may credit to any participant’s account an amount it determines in its sole and complete discretion. A
participant is vested in a discretionary contribution in accordance with a vesting schedule, which could be time-based,
performance-based, or both, as determined by Pier 1 Imports. If vesting is time-based, then no vesting can occur for a period
of twelve months from the date the discretionary contribution is credited to the participant’s account. If vesting is performance-
based, then the performance period cannot end on or before the date that is the six-month anniversary of the date the
discretionary contribution is credited to the participant’s account. No discretionary contributions were made to any NEOs in
fiscal 2014.
Each participant may allocate their deferral amounts and Pier 1 Imports’ matching contributions and any discretionary
contributions among different deemed investment crediting options, which cover various asset classes. Participant accounts
are credited with the same earnings or losses as the deemed investment crediting option and are subject to the same
investment risk as an actual investment in the deemed investment crediting options. Subject to plan rules, participants may
elect to have their deferral account balance paid to them while employed or after separation from Pier 1 Imports; provided,
however, that upon separation of employment, any unpaid amounts elected to be paid while employed will be paid after
separation of employment. Vested matching account balances are distributed to participants only after separation from Pier 1
Imports.
Trusts have been established for the purpose of setting aside funds to be used to settle obligations under BRP II and the
DCP. The trusts’ assets are consolidated in Pier 1 Imports’ financial statements and consisted of investments aggregating
$6,671,728 at March 1, 2014. The trusts also own and are the beneficiaries of a number of insurance policies on the lives of
current and past key executives. At March 1, 2014, the cash surrender value of these policies was $5,068,395. These
investments are restricted and may only be used to satisfy BRP II and DCP obligations.
Name
Executive
Contributions in
Last Fiscal Year (1)
($)
Registrant
Contributions in
Last Fiscal Year (2)
($)
Aggregate
Earnings in Last
Fiscal Year
($)
Aggregate
Withdrawals /
Distributions
($)
Aggregate
Balance at Last
Fiscal Year-
End (5)
($)
Alexander W. Smith
BRP II N/A N/A $ 7,767 (3) $0 $ 167,285
DCP $331,827 $84,750 $102,264 (4) $0 $1,247,836
Charles H. Turner
BRP II N/A N/A $ 5,620 (3) $0 $ 121,052
DCP $ 17,137 $11,839 $ 7,588 (4) $0 $ 80,715
Michael R. Benkel
BRP II N/A N/A $ 1,648 (3) $0 $ 35,485
DCP $ 35,110 $20,685 $ 19,559 (4) $0 $ 184,473
Catherine David
BRP II N/A N/A $ 6,498 (3) $0 $ 139,959
DCP $327,694 $26,252 $ 67,842 (4) $0 $ 860,064
Sharon M. Leite
BRP II N/A N/A $ 816 (3) $0 $ 17,564
DCP $ 0 $ 0 $ 1,257 (4) $0 $ 14,799
(1) Reflects participation in the DCP by the NEOs during fiscal 2014. Executive contribution amounts are included in each NEO’s salary amount in the table included under the caption “Summary
Compensation Table for the Fiscal Years Ended March 1, 2014, March 2, 2013 and February 25, 2012” above.
48 PIER 1 IMPORTS, INC. 2014 Proxy Statement