Staples 2006 Annual Report Download - page 46

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30
The Staples Executive Benefits Program consists of the benefits described below. For each plan or policy
described below that requires payment of periodic premiums or other contributions, we generally pay such premiums
or other contributions for the benefit of each named executive officer.
•Supplemental Executive Retirement Plan (SERP). The SERP is a non-qualified deferred compensation plan
which is generally intended to provide comparable benefits above the applicable limits of our 401(k) qualified
plan. Named executive officers may contribute a total of up to 100% of their base salary and bonus. They
receive matching contributions equal to 100% of each dollar saved, up to a maximum of 4% of base salary and
bonus. The matching contributions are credited at an interest rate established at the beginning of each year.
For 2006, the annual interest rate was equal to 5.44%.
•Executive Life Insurance Plan. Our named executive officers, excluding Mr. Miles, are covered by a life
insurance plan that provides coverage equal to three times their annual base salary on both a pre-retirement
and a post-retirement basis. Mr. Miles is covered by a different insurance plan that we began offering to named
executive officers in 2004. The newer plan provides pre-retirement basic life insurance equal to three times
annual salary up to a maximum amount of coverage of $1.5 million and post-retirement life insurance coverage
of twice the average of the named executive officer’s highest five consecutive years’ base salary to a maximum
coverage of $1 million.
•Long-Term Care Insurance. This benefit pays $150 per day, adjusted annually, for a maximum of five years
and provides coverage while employed and post retirement following age 65, provided the executive has
continued premium payments during the interim.
•Supplemental Long-Term Disability. If a named executive officer should become disabled and unable to work
for a period lasting more than 180 days, this benefit will provide a level of income not covered by our group
long-term disability plan. Our group long-term disability plan covers 60% of base salary, up to a maximum base
salary of $400,000. The supplemental long-term disability plan extends such coverage generally for an
additional $200,000 of base salary. All of the named executive officers, other than Mr. Doody, have elected
supplemental long-term disability coverage.
•Survivor Benefit Plan. If a named executive officer dies while actively employed by us, his or her beneficiary
will receive 100% replacement income (base salary and bonus) for the first year and an additional 50% for
each of the following two years.
•Executive Physical and Registry Program. This is a company paid physical examination program to enhance
awareness and treatment of potential health risks faced by the named executive officers. In addition, this
program supports named executive officers and their family members with health resources in the U.S. or while
traveling abroad.
Executive Perquisites
Our executive compensation program is relatively free of perquisites, consistent with our egalitarian culture and
entrepreneurial spirit. To reinforce this position, the Compensation Committee adopted formal policies in 2004
regarding personal use of our leased aircraft and reimbursement for tax planning services for executive officers. The
Committee views our limited executive perquisites as reasonable and competitive.
Under our aircraft policy, our Chief Executive Officer is permitted to use our leased aircraft for personal use so
long as the incremental cost to Staples is treated as compensation income to our Chief Executive Officer. Subject to
prior approval of our Chief Executive Officer and similar compensation treatment, other named executive officers
may also use our leased aircraft for personal use. There was no personal use of our leased aircraft during our 2006
fiscal year.
We reimburse each named executive officer, other than our Chief Executive Officer, up to $5,000 each year for
tax, estate or financial planning services or advice from a pre-approved list of service providers that must not include
our outside auditors. Our Chief Executive Officer is reimbursed up to $50,000 each year for these services. The
Compensation Committee annually reviews the amounts paid under this policy for compliance.