Pier 1 2008 Annual Report Download - page 118

Pier 1 Imports’ 401(k) and Stock Purchase Plan are broad based plans available to all eligible
employees on a non-discriminatory basis.
(d) This column reports dividends paid on unvested restricted stock held by the named executive officers.
(e) This column reports the following amounts paid to Mr. Smith pursuant to his employment agreement
and as described in the Compensation Discussion and Analysis above:
• $125,000 allowance for moving, relocation, and other expenses ($45,965 paid during fiscal 2007
and $79,035 paid during fiscal 2008);
• Travel expenses of $6,383 paid by Pier 1 Imports during fiscal 2008 for Mr. Smith and his spouse
for travel between Boston and Fort Worth; and
• $500,000 reimbursement during fiscal 2008 for lost benefits under the long-range performance
incentive plan of his former employer.
This column reports $366,250 paid to Mr. Schneider for termination and settlement of his post-
employment consulting agreement.
(6) Mr. Humenesky was not a named executive officer in fiscal 2007.
Grants of Plan-Based Awards for the Fiscal Year Ended March 1, 2008
During fiscal 2008, Pier 1 Imports maintained a short-term incentive plan for senior executives and key
members of management in which all of the named executive officers other than Mr. Smith participated.
Under the plan, incentive awards in the form of cash are paid if Pier 1 Imports attains certain targeted levels
of consolidated operating cash earnings from continuing operations before interest, taxes, depreciation, and
amortization, but not including unusual or non-recurring charges nor certain non-cash items, each as
determined by the compensation committee, or a subcommittee. We refer to this measure as the Profit Goal.
The participant must be employed at the end of the fiscal year to receive any cash incentive award. An
executive’s cash incentive award potential is expressed as a percentage of his annual base salary for the fiscal
year. The cash incentive award target for Messrs. Turner, Humenesky, Jacobs and Walker was 75% of their
annual base salary. Mr. Schneider was not employed with Pier 1 Imports at the end of fiscal 2008. The short-
term incentive plan is further described in the Compensation Discussion and Analysis above. Mr. Smith’s
bonus for fiscal 2008 was set pursuant to his employment agreement at a minimum guaranteed amount of
$500,000, with a maximum payout of $750,000 at the discretion of the board of directors. This bonus amount
is not an incentive plan award and is not included in the table below. However, his actual payout of $750,000
is included in the Summary Compensation Table above under the Bonus column.
During fiscal 2008, Pier 1 Imports granted under the Pier 1 Imports, Inc. 2006 Stock Incentive Plan time
based restricted stock awards. These time based awards vest 33%, 33% and 34% each year over a three-year
period beginning on the first anniversary of the grant date provided that the participant is employed at the
vesting date. Time based restricted stock grants for fiscal 2008 to Messrs. Turner, Humenesky, Jacobs,
Schneider and Walker were 12,000 shares each. Mr. Schneider forfeited all of his unvested restricted stock
awards upon his termination.
During fiscal 2008, Pier 1 Imports granted under the Pier 1 Imports, Inc. 2006 Stock Incentive Plan non-
qualified stock options of 60,000 each to Messrs. Turner, Humenesky, Jacobs, Schneider and Walker that vest
equally over a four-year period beginning on the first anniversary of the grant date. The options terminate
10 years from the date of grant. Mr. Schneider’s stock option vesting accelerated pursuant to the option grant
agreement upon the end of his employment given his age and years of service with Pier 1 Imports. Those fully
vested options may be exercised during the three years following his termination.
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