Staples 2004 Annual Report Download - page 46

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Option Grants
The following table sets forth certain information concerning grants of stock options during the fiscal year ended
January 29, 2005 for each of the Senior Executives.
OPTION GRANTS IN LAST FISCAL YEAR
Grant Date
Individual Grants Value
Number of Percent of
Securities Total Options Exercise
Underlying Granted to Price per
Options Employees in Share Expiration Grant Date
Name Granted (1) Fiscal Year (2) Date Present Value (3)
Ronald L. Sargent ....................... 525,000 3.35% $19.12 7/01/2014 $3,961,965
John J. Mahoney ........................ 150,000 0.96% $19.12 7/01/2014 $1,131,990
Michael Miles .......................... 225,000 1.44% $19.12 7/01/2014 $1,697,985
Basil L. Anderson ....................... 180,000 1.15% $19.12 7/01/2014 $1,358,388
Joseph G. Doody ........................ 75,000 0.48% $19.12 7/01/2014 $ 565,995
(1) Each of the options granted vests ratably on an annual basis over a four-year period, provided that the optionee
continues to be employed by us on such dates. The exercisability of the options is accelerated under certain
circumstances. See ‘‘Employment, Termination of Employment and Change-in-Control Agreements with Senior
Executives.’’
(2) The exercise price is equal to the fair market value per share of Staples common stock on the date of grant.
(3) The estimated present values at grant date have been calculated using a Black-Scholes option pricing model,
based upon the following assumptions: a five-year expected life of option; a dividend yield of 0.70%; expected
volatility of 42%; and a risk-free interest rate of 3.860%, representing the interest rate on a U.S. Government
zero-coupon bond on the date of grant, with a maturity corresponding to the expected life of the option. The
approach used in developing the assumptions upon which the Black-Scholes valuations were calculated is
consistent with the requirements of Statement of Financial Accounting Standards No. 123, ‘‘Accounting for
Stock-Based Compensation.’’
Option Exercises and Holdings
The following table sets forth certain information concerning the exercise of stock options during the fiscal year
ended January 29, 2005 by each of the Senior Executives and the number and value of unexercised options held by
each of the Senior Executives on January 29, 2005.
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