Pier 1 2015 Annual Report Download - page 132

EXECUTIVE COMPENSATION
Compensation Risk
Annually, Pier 1 Imports’ internal audit department assists the company in assessing its compensation risk by conducting a risk
assessment of Pier 1 Imports compensation policies. Internal audit’s evaluation consists of a review of all incentive plans and their
compensation elements: salary, short- and long-term incentives, performance measurement mechanics, compensation features
and performance targets. Based on that assessment, Pier 1 Imports does not believe that its compensation policies, principles,
objectives and practices are structured to promote inappropriate risk-taking by its executives nor inappropriate risk-taking by its
employees whose behavior would be most affected by performance-based incentives. Pier 1 Imports believes that this focus on
its overall compensation program encourages its employees to take a balanced approach that focuses on increasing and
sustaining Pier 1 Imports’ profitability.
Summary Compensation Table for the Fiscal Years Ended February 28,
2015, March 1, 2014, and March 2, 2013
The following table sets forth a summary of the compensation in the past three fiscal years for services rendered in all capacities
to Pier 1 Imports and its subsidiaries by the chief executive officer, chief financial officer and the three other most highly
compensated executive officers.
Name &
Principal Position Fiscal Year Salary (1) ($) Bonus ($)
Stock
Awards (2)
($)
Option
Awards
($)
Non-Equity
Incentive
Plan
Compensation (3)
($)
Change in
Pension
Value and
Non-Qualified
Deferred
Compensation
Earnings (4)
($)
All Other
Compensation (5)
($) Total ($)
Alexander W. Smith 2015 $1,250,000 $0 $ 3,409,125 N/A $ 0 $3,505,850 $ 83,919 $ 8,248,894
President and Chief 2014 $1,250,000 $0 $ 4,574,550 N/A $ 0 $1,838,855 $ 174,790 $ 7,838,195
Executive Officer 2013 $1,050,000 $0 $11,842,575(6) N/A $1,837,500 $3,746,136 $ 279,712 $18,755,923
Charles H. Turner 2015 $ 453,077 $0 $ 555,274 N/A $ 0 $2,007,674 $1,131,032 $ 4,147,057
Senior Executive Vice 2014 $ 475,000 $0 $ 610,394 N/A $ 0 $ 474,128 $ 57,291 $ 1,616,813
President and
Chief Financial Officer
(retired February 10, 2015)
2013 $ 472,692 $0 $ 730,361 N/A $ 654,792 $1,580,227 $ 71,092 $ 3,509,164
Laura A. Coffey (7)
Executive Vice President
and Interim Chief
Financial Officer
2015 $ 280,885 $0 $ 225,798 N/A $ 0 $ 0 $ 23,603 $ 530,286
Michael R. Benkel 2015 $ 355,385 $0 $ 915,460 N/A $ 0 $ 0 $ 26,869 $ 1,297,714
Executive Vice President, 2014 $ 330,000 $0 $ 414,358 N/A $ 0 $ 0 $ 40,951 $ 785,309
Planning and Allocations 2013 $ 326,923 $0 $ 479,764 N/A $ 413,748 $ 0 $ 48,418 $ 1,268,853
Catherine David 2015 $ 428,462 $0 $ 1,000,480 N/A $ 0 $ 0 $ 33,511 $ 1,462,453
Executive Vice President, 2014 $ 418,846 $0 $ 528,800 N/A $ 0 $ 0 $ 49,912 $ 997,558
Merchandising 2013 $ 408,462 $0 $ 607,945 N/A $ 527,185 $ 0 $ 56,531 $ 1,600,123
Sharon M. Leite 2015 $ 393,846 $0 $ 958,677 N/A $ 0 $ 0 $ 15,864 $ 1,368,387
Executive Vice President, 2014 $ 358,846 $0 $ 454,602 N/A $ 0 $ 0 $ 15,772 $ 829,220
Sales and Customer
Experience
2013 $ 350,000 $0 $ 521,418 N/A $ 456,340 $ 0 $ 16,001 $ 1,343,759
(1) This column represents the amount of base salary earned during each fiscal year.
(2) This column represents the accounting grant date fair value of all time-based and performance-based restricted stock awards issued during the fiscal year. These amounts reflect Pier 1
Imports’ accounting expense for these awards in accordance with accounting rules, and do not necessarily correspond to the actual value that will be recognized by the NEO. For awards other
than the TSR performance-based restricted stock, fair value is calculated using the closing price of Pier 1 Imports common stock on the date of grant. If the date of grant occurs on a day
when Pier 1 Imports common stock is not traded, then the closing price on the last trading day before the date of grant is used. For these awards, the closing price on the date of grant for
fiscal 2015 awards was $18.69 for Mr. Smith. The closing price on the date of grant for the other NEOs was $18.69, $17.78 and $12.30. For TSR performance-based restricted stock awards,
fair value was $9.94 for Mr. Smith and $9.04 for the other NEOs, which was determined by a valuation model. The amounts shown exclude the impact of estimated forfeitures related to
service-based vesting conditions.
For Profit Goal and e-Commerce performance-based awards, the grant date fair value is based on the probable outcome of Pier 1 Imports achieving performance targets. The amounts in the
table assume targets are met and the maximum number of shares awarded will vest. However, with respect to the Profit Goal performance-based shares, targets for fiscal 2015 were not
achieved and the maximum number of shares did not vest.
50 PIER 1 IMPORTS, INC. 2015 Proxy Statement