Pier 1 2008 Annual Report Download - page 93

Non-Employee Director Compensation for the Fiscal Year Ended March 1, 2008
Fees Paid to Directors
Directors who are Pier 1 Imports employees do not receive any compensation for their board activities.
Each director who is not a Pier 1 Imports employee receives an annual cash retainer of $150,000. In addition,
the audit committee chairman and compensation committee chairman each receive an additional annual cash
retainer of $25,000; the nominating and corporate governance committee chairman receives an additional
annual cash retainer of $10,000; and the non-executive chairman of the board of directors receives an
additional annual cash retainer of $75,000. During fiscal 2008, the annual retainers were paid monthly in
arrears. Non-employee directors do not receive stock option or restricted stock grants or meeting fees.
All of Pier 1 Imports’ non-employee directors participate in Pier 1 Imports’ Director Deferred Stock Unit
Program as set forth in the Pier 1 Imports, Inc. 2006 Stock Incentive Plan and the Pier 1 Imports, Inc. 1999
Stock Plan. During fiscal 2008, the program provided a mandatory deferral of 50% for a portion of the year
and an optional deferral of up to 100% for a portion of the year of the annual retainer fees. Deferred director
annual retainer fees (but not committee chair or chairman annual retainers) are matched 25% by Pier 1 Imports
and the total deferred fees and matching contributions are converted into an equivalent value of deferred stock
units (“DSU’s”). Deferred fees plus matching contributions are converted to DSU’s based on the closing price
of Pier 1 Imports’ common stock on the first business day following the month in which the fees are earned.
The DSU’s are credited to an account maintained by Pier 1 Imports for each non-employee director. Each
DSU is the economic equivalent of one share of Pier 1 Imports’ common stock. Each DSU is eligible to
receive dividends payable on Pier 1 Imports’ common stock in additional DSU’s equal to the dividend per
share of common stock divided by the closing price of Pier 1 Imports’ common stock on the dividend payable
date. Pier 1 Imports discontinued its quarterly cash dividend on October 2, 2006. The DSU’s are settled in
shares of Pier 1 Imports’ common stock within thirty (30) days after the person ceases to be a member of the
board of directors.
Fiscal 2008 Non-Employee Director Compensation Table
The following table sets forth a summary of the compensation with respect to the fiscal year ended
March 1, 2008 for services rendered in all capacities to Pier 1 Imports by its non-employee directors:
Name
Fees
Earned
or Paid
in Cash(1)
($)
Stock
Awards(2)
($)
Option
Awards
($)
Non-Equity
Incentive Plan
Compensation
($)
Change in
Pension
Value and
Non-Qualified
Deferred
Compensation
Earnings
($)
All Other
Compensation
($)
Total
($)
John H. Burgoyne .......... $166,150 $20,222 $0 $0 $0 $0 $186,372
Michael R. Ferrari .......... $159,212 $18,660 $0 $0 $0 $0 $177,872
James M. Hoak, Jr. ......... $ 56,390 $12,071 $0 $0 $0 $0 $ 68,461
Robert B. Holland, III ....... $101,233 $25,308 $0 $0 $0 $0 $126,541
Karen W. Katz ............. $149,278 $37,320 $0 $0 $0 $0 $186,598
Terry E. London ........... $175,257 $18,920 $0 $0 $0 $0 $194,177
Cece Smith . .............. $101,233 $25,308 $0 $0 $0 $0 $126,541
Tom M. Thomas ........... $223,236 $36,799 $0 $0 $0 $0 $260,035
(1) This column represents the amount of cash compensation earned in fiscal 2008 for board and committee
service. As described in footnote 2 below, either 50%, 75% or 100% of this cash compensation was
deferred.
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