Troubled home furnishings firm Pier 1 Imports Inc (NYSE:PIR) is renewing its employment contract with Chief Executive Alex Smith. In a filing with the U.S. SEC, the company said that the contract will renew on February 28 and for consecutive one-year terms yearly after that. Canceling the employee deal will require the company or Smith to give a notice of termination sixty days before terminating the contract.The documents didn’t highlight a salary plan for Smith.
Smith joined Pier 1 Imports in February 2007 after working as Senior Executive VP at TJX Cos. (NYSE:TJX). At the time of his recruitment at Pier 1, Smith finalized the contract with a base pay of $1 million annually, with bonus in its first year ranging between $500,000 and $750,000. As of FY2015, he earned about $8.25 million, as per Dallas Business Journal research, and comes in the list of North Texas highest paid public firm CEOs.
At the recruitment time, Smith inherited a firm that had witnessed a 23.6% share price decline over the preceding twelve months. In December 2006, Pier 1 Imports’ sales had declined 11% after a 15% plunge in November 2006. However, before he could deal with any of the company’s issues, Smith encountered obstacle as he tried to take over the reins at the firm. In February 2007, Pier 1 Imports announced a case again TJX Cos. for prying with Smith’s ability to report for his new role. TJX stated that Smith was breaching a non-compete clause in his employment deal.
Pier 1 Imports Inc (NYSE:PIR) obtained a provisional restraining mandate against TJX, permitting Smith to report for duty in February 2007. After the jerky road to the CEO profile, Smith faced more hurdles during initial years on the job. In 2008, the NYSE Regulation Inc. stated Pier 1 Imports that it was in threat of being delisted after its stock declined below $1 per day for thirty consecutive days.