Staples 2007 Annual Report Download - page 53

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• Preparing for and attending selected Compensation Committee and Board meetings;
• Supporting the Compensation Committee in staying current on the latest legal, regulatory and accounting
considerations affecting executive compensation and benefit programs; and
• Providing general counsel and advice to the Compensation Committee with respect to all compensation
decisions pertaining to the Chief Executive Officer and all compensation recommendations submitted by
management.
During our 2007 fiscal year, the independent consultant advised, and frequently made recommendations to, the
Compensation Committee on compensation matters for all officers and directors as requested by management or the
Compensation Committee, advised on and made recommendations on all matters pertaining to compensation of our
Chief Executive Officer, including his retention award, and regularly met with the Compensation Committee in
executive session without the presence of management. Consistent with the terms of the written agreement, Exequity
has, with the knowledge and consent of the Compensation Committee, provided advice and expertise to management
on matters to be presented by management to the Compensation Committee, and Exequity has not performed
services for Staples that were unrelated to Compensation Committee-related executive compensation matters. During
2007, Exequity assisted management by providing experience based executive market data related to executive and
non-executive positions. Most of the data reviewed by the Compensation Committee is generated by management and
reviewed and advised upon by the compensation consultant. The principal consultant from Exequity attended all
Compensation Committee meetings during our 2007 fiscal year.
Benchmarking
Generally in September of each year, the Compensation Committee reviews compensation for our Chief
Executive Officer, Chief Financial Officer and Chief Operating Officer relative to marketplace norms and practices by
comparing current proxy statement data. The compensation of our other named executive officers is reviewed relative
to the marketplace by reviewing salary survey data since comparable proxy data is not available for the relevant
positions. This analysis is intended to inform the Compensation Committee as to whether any changes to the
compensation program are needed, and based on the findings and the urgency of the suggested changes, if any,
changes are typically implemented between September and the following March when compensation is set for the next
fiscal year.
The Compensation Committee evaluates the competitiveness of our compensation relative to a core peer group
of eight retail companies and an expanded peer group that includes five additional retailers. The core peer group
represents those companies with whom we compete most closely for customers or executive talent, and the expanded
peer group includes five other retailers that we compete with less directly but when combined with the core peer
group provide a broader view of the retail market. Throughout this Compensation Discussion and Analysis, we refer
to the core retail peer group and expanded retail peer group collectively as our ‘‘peer groups.’’ Our peer groups are as
follows:
Core Retail Peer Group Expanded Retail Peer Group
Best Buy Co., Inc. Core Retail Peer Group plus:
Circuit City Stores, Inc. Autozone, Inc.
The Gap, Inc. Costco Wholesale Corporation
The Home Depot, Inc. Kohl’s Corporation
Lowe’s Companies, Inc. Limited Brands, Inc.
Office Depot, Inc. Target Corporation
OfficeMax Incorporated
The TJX Companies, Inc.
In addition, the Compensation Committee considers data from a general industry group comprised of 70 to 79
companies with executives with comparable positions and responsibilities and annual revenues between $15 and
$30 billion.
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