Pier 1 2016 Annual Report Download - page 112

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COMPENSATION
“Realized pay” is calculated by including the amount of compensation actually realized during fiscal 2016. The value of realized long-
term incentives was determined by multiplying the number of shares that vested during fiscal 2016 by the closing price of Pier 1 Imports’
common stock on the last trading day of the fiscal year, which is different than the grant date fair value methodology required in the
summary compensation table.
As shown in the table, the lack of performance had a significant negative effect on Mr. Smith’s total direct compensation actually
realized in fiscal 2016, resulting in realized pay that was approximately 65% of adjusted summary compensation table pay. Pier 1
Imports’ compensation programs pay for performance, and when performance does not meet expectations, the alignment is evident in
reduced pay levels. This information should be considered as a supplement to, and not as a substitute for, the summary compensation
table information on page 35.
Table 7
Adjusted Summary Compensation Table Pay and Realized Pay
Adjusted Summary
Compensation Table Pay
All Other Compensation
Restricted Shares - 3/2015 Award
Restricted Shares - 3/2014 Award
Restricted Shares - 3/2013 Award
TSR Performance Shares - 3/2015 Award
Base Salary
Realized Pay
FY16
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$3,500,000
$2,500,000
$1,500,000
$500,000
$-
30 PIER 1 IMPORTS, INC. | 2016 Proxy Statement