PIER 1 IMPORTS, INC. (NYSE:PIR) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 1, 2019, the Board of Directors (the “Board”) of Pier 1 Imports, Inc. (the “Company”) approved the Company’s short-term incentive program for its executive officers for the second half of fiscal 2020, as recommended by the Board’s Compensation Committee (the “Committee”). Executives eligible to receive a short-term incentive award for the second half of fiscal 2020 include named executive officers Robert E. Bostrom, Executive Vice President, Chief Legal and Compliance Officer and Corporate Secretary; Mark R. Haley, Executive Vice President, Store Sales and Operations; and William H. Savage, Executive Vice President and Chief Global Supply Chain Officer; and Robert J. Riesbeck, the Company’s Executive Vice President and Chief Financial Officer.
The short-term incentive program provides the executive with an opportunity to earn a performance-based cash award to the Pier 1 Imports, Inc. 2015 Stock Incentive Plan, as amended. For fiscal 2020, the total target annual incentive for Mr. Bostrom is 125% of his base salary, and the total target annual incentive for Mr. Haley and Mr. Savage is 75% of each of their respective base salaries, based on the Company’s achievement of performance metrics established by the Committee. Mr. Riesbeck’s target incentive for the second half of fiscal 2020 was increased to 125% of his base salary earned in the second half of fiscal 2020. Mr. Riesbeck’s original total target annual incentive was 50% of his base salary, prorated based on the commencement of his employment, as set forth in the Offer Letter from the Company dated July 12, 2019, which was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on July 19, 2019. The short-term incentive program provides for 50% of the total target annual incentive to be paid based on performance metrics achieved during the second half of fiscal 2020. The performance metrics for the second half of fiscal 2020 consist of revenue, operating cash EBITDA and free cash flow. Fifty percent of the second half target opportunity will be earned and paid if the revenue metric target is achieved and 25% will be earned and paid for each of the operating cash EBITDA and free cash flow metrics if the respective targets are achieved, with a potential threshold payment of 30% and a maximum of 200% for each metric depending upon performance level. No payout will be earned for either the operating cash EBITDA or free cash flow metrics unless the second half enterprise cost savings target is met.
About PIER 1 IMPORTS, INC. (NYSE:PIR)
Pier 1 Imports, Inc. is an importer of home decor and furniture. The Company’s operations consist of retail stores and an e-commerce Website conducting business under the name Pier 1 Imports, which sells a range of decorative accessories, furniture, candles, housewares, gifts and seasonal products. The Company’s categories of merchandise include decorative accessories and furniture. The decorative accessories category includes decorative accents and textiles, such as rugs, wall decorations and mirrors, candles, fragrance, gifts and seasonal items. The furniture category includes furniture and furniture cushions to be used in living, dining, office, sunrooms and patios. This merchandise group is generally made of metal or handcrafted natural materials, including rattan, pine, acacia, oak and other woods with either natural, stained, painted or upholstered finishes.
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