Pier 1 2015 Annual Report Download - page 125

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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 2015 among base salary, short-term cash incentives and long-term equity incentives for the CEO and for the other
NEOs as a group (Ms. Coffey is excluded solely for the purposes of this table):
Table 2
Fiscal 2015 Targeted Direct Compensaon
NEOCEO
Base Salary Long-Term Incenve (Equity)Short-Term Incenve (Cash)
36%
28%
36%
70%
14%
16%
Base Salary
N
O
A
CROSS
-T
HE
-B
OARD
I
NCREASES
In fiscal 2015, 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 only three of the NEOs, as shown in Table 3 below (Ms. Coffey was appointed executive vice
president and interim chief financial officer on February 10, 2015 and the only salary shown below for her is the amount effective
on her promotion). Mr. Smith’s base salary is governed by his employment agreement, as described below at “Chief Executive
Officer Compensation,” and no changes were made to it in fiscal 2015.
Table 3
Named Executive Officer
Fiscal 2014
Base Salary
($)
Fiscal 2015
Base Salary
($)
Percentage
Increase
(%)
Alex Smith $1,250,000 $1,250,000 0%
Charles H. Turner $ 475,000 $ 475,000 0%
Laura A. Coffey — $ 325,000 —
Michael R. Benkel $ 330,000 $ 360,000 9.1%
Catherine David $ 420,000 $ 430,000 2.4%
Sharon M. Leite $ 360,000 $ 400,000 11.1%
Generally, Pier 1 Imports targets base salary at the 50th percentile of its peer group companies 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.
PIER 1 IMPORTS, INC. 2015 Proxy Statement 43