Pier 1 2015 Annual Report Download - page 117

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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’ 2015 proxy statement.
COMPENSATION COMMITTEE
Cheryl A. Bachelder, Chair
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 (“NEOs”) for fiscal 2015 and puts into perspective
the tabular disclosures and related narratives that follow it.
For fiscal 2015, Pier 1 Imports’ NEOs include its former senior executive vice president and chief financial officer who retired
effective February 10, 2015, and its interim chief financial officer, who was appointed on February 10, 2015. Pier 1 Imports’
NEOs are the following:
•Alexander W. Smith, president and chief executive officer
•Charles H. Turner, former senior executive vice president and chief financial officer
•Laura A. Coffey, executive vice president and interim chief financial officer
•Michael R. Benkel, executive vice president, planning and allocations
•Catherine David, executive vice president, merchandising
•Sharon M. Leite, executive vice president, sales and customer experience
Executive Summary
No Fiscal 2015 Performance-Based Incentives Earned
Pier 1 Imports’ results for fiscal 2015 were a mix of operational successes involving its continued evolution in the e-Commerce
arena and continued positive company comparable sales, and missed opportunities which included delivering earnings and
common stock price performance that were below expectations. This is in contrast to the financial performance and common
stock price appreciation Pier 1 Imports experienced over the past 3-5 years. While fiscal 2015 was another profitable year for Pier
1 Imports with continued strong cash flows and a healthy balance sheet, financial performance did not meet expectations for the
year and as a result no performance-based incentives or any other bonuses were earned or paid to any NEO. However, Pier 1
Imports believes that the executive officers’ decisions and leadership have positioned Pier 1 Imports to deliver improved
operations and profitable operating performance. Although performance levels were below expectations for the year, Pier 1
Imports experienced several significant achievements, both financially and operationally. Detailed below are key business
achievements during fiscal 2015, highlights of Pier 1 Imports’ chief executive officer (“CEO”) compensation, an overview of Pier 1
Imports’ executive compensation philosophy and “career share grants” to specific NEOs in fiscal 2015.
Fiscal 2015 Business Results Highlights:
•Net sales for fiscal 2015 grew 5.3% to $1.866 billion, compared to net sales for fiscal 2014 of $1.772 billion.
•Delivered a 4.7% annual company comparable sales increase in fiscal 2015 over the prior year.
•E-Commerce sales through www.pier1.com grew by over 190% compared to fiscal 2014. Fiscal 2015 e-Commerce sales
comprised 11% of the fiscal year’s net sales.
PIER 1 IMPORTS, INC. 2015 Proxy Statement 35