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EXECUTIVE COMPENSATION AND COMPENSATION DISCUSSION AND ANALYSIS
www.staplesannualmeeting.com STAPLES 33
Peer Group Composition: Shareholders have voiced a
concern that some of the companies in our peer group are not
appropriate, given that their revenue and market capitalization
are significantly greater than ours. In response to this feedback,
we have modified our peer group as shown in the following
chart, and as further described in this CD&A under the caption
Plan Design & Compensation Process – Peer Group.
Deleted from Peer Group Added to Peer Group
• Amazon.com
• Costco Wholesale Corporation
• The Home Depot, Inc.
• Starbucks Corporation
• Target Corporation
• Walgreen Boots Alliance
• Bed Bath & Beyond
• CarMax, Inc.
• NIKE, Inc.
• Nordstrom, Inc.
• Publix Super Markets, Inc.
• Rite Aid Corporation
CEO Compensation: Given Staples’ relative TSR in 2015, the
CEO elected to forego the annual cash incentive of $620,232
he would have otherwise received, prior to the determination
of payouts by the Committee. Mr. Sargent also elected not to
receive a salary increase in 2016 and has not received a salary
increase since 2013.
Committed to Compensation Best Practices
Things We Do Things We Don’t Do
• Strong alignment of pay and performance
• 89% of CEO compensation in 2015 was “at risk”
• Both short- and long-term programs include performance goals
• Rigorous, objective financial metrics on annual and performance-
based long-term awards that are closely tied to business strategy
• 3-year relative TSR modifier in performance-based long–term
awards
• Strong stock ownership guidelines (5x salary for CEO, 3-4x for
other NEOs)
• Double trigger change in control provisions in severance
agreements
• Clawback policy
• Anti-hedging policy
• Policy requiring shareholder approval for executive severance in
excess of certain limits
• Cumulative three-year goals in the long-term incentive program
• No employment agreements
• No excise tax gross-ups in executive severance
agreements
• No pension plan
Plan Design & Components of Executive Compensation
Our NEOs for fiscal year 2015 were:
NEO Title in 2015
Ronald L. Sargent Chairman & CEO
Christine T. Komola Executive Vice President and CFO
Joseph G. Doody Vice Chairman
Demos Parneros President North American Stores & Online (“NAS&O”) 1
John Wilson President Staples Europe 2
1 Mr. Parneros left Staples on March 31, 2016.
2 Became President International Operations and Head of Global Transformation (“IO&T”) in 2016.