Staples 2015 Annual Report Download - page 38

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EXECUTIVE COMPENSATION AND COMPENSATION DISCUSSION AND ANALYSIS
34 STAPLES Notice of Annual Meeting of Stockholders
In 2015, our executive compensation program had three elements: (1) base salary, (2) annual performance-based cash incentive,
and (3) long-term performance-based stock incentives. The following illustrates our 2015 executive compensation program:
CEO Target Opportunity Mix
Base
Salary
11%
Elements of
Compensation
Fixed vs.
Performance Based
Short-Term vs.
Long-Term
Cash vs. Equity
Fixed
11%
Short-Term
28%
Cash
28%
Annual
Incentives
17%
Long-Term Incentives
72%
Performance Based
89%
Long-Term
72%
Equity
72%
NEO Average (excluding CEO)
Target Opportunity Mix
Base
Salary
20%
Elements of
Compensation
Fixed vs.
Performance Based
Short-Term vs.
Long-Term
Cash vs. Equity
Fixed
20%
Short-Term
37%
Cash
37%
Annual
Incentives
17%
Long-Term Incentives
63%
Performance Based
80%
Long-Term
63%
Equity
63%
Component Fixed or Variable 2015 Benchmark/Metrics
Base Salary
Annual Cash Award Fixed
100% Performance-based Median of peers
• 50% Earnings Per Share
• 25% Total Gross Margin Dollars
• 25% Beyond Office Supplies Sales Growth
Performance Share Award 100% Performance Based • 50% Return on Net Asset (RONA) %
• 50% Sales Growth %
• +/- 25% based on 3-year Relative Total Shareholder
Return (TSR)
Benefits Fixed • Broad-based plans and limited executive perquisites
Both our annual cash award and our performance share awards for 2015 were 100% tied to objective and rigorous financial goals.
We set our goals for our incentive programs within the first 90 days of the fiscal year. Target performance goals generally are based
on our fiscal year operating plan and outlook for the upcoming year.