Staples 2004 Annual Report Download - page 11

Corporate Governance
Since our founding, we have sought to follow best practices in corporate governance in a
manner that is in the best interests of our business and shareholders. In 2004, we further
aligned management’s interests with the interests of Staples’ shareholders through two
important corporate governance initiatives. First, we do not have a shareholder rights plan in
effect and are not considering adopting one. Further, in response to our shareholders’ request,
our board of directors adopted a shareholder rights plan policy, under which we will only
adopt a shareholder rights plan if the plan has been approved by shareholders either in
advance or within 12 months of its adoption by our board. Second, our board adopted new
stock ownership guidelines. These guidelines require that non-management members of the
board own a minimum level of equity in the company worth at least $200,000. The new
guidelines also call for minimum equity ownership levels for all senior executives, including
the CEO, who must own equity worth at least five times his salary. Going forward, Staples
will continue its commitment to best practices in corporate governance.
A GREAT PLACE TO WORK
Staples strives to be a truly great company — one that people are proud to work for,
offering an inclusive environment where each member of our diverse and talented team can
develop and make a difference.
Fostering such an environment helps us build a more productive, vibrant and loyal workforce.
Our associates’ diverse set of viewpoints helps us understand and build rapport with our
customers, resulting in better customer service and a more rewarding shopping experience.
Reflecting the face of our customers helps us sustain a competitive advantage that is
crucial to our success. Visitors to our stores who are greeted by associates with similar
backgrounds — even languages, in some cases — feel more at home and are more likely
to become loyal customers. We’re reaching out directly to attract diverse customers, as well.
In southern California, we launched our first advertising campaign targeted to the Latino
population. Our excellent track record in diversity is an important factor that many of our
Contract customers look to when making their supplier decision.
To attract and retain people from diverse populations, we market Staples in a variety
of venues. We recruit at historically black and high-minority colleges, attend job fairs,
and advertise on diverse Web sites. In 2004, our college recruiting initiatives resulted in
67% diverse new hires and 45% female new hires. We work with various professional
organizations that represent women and minorities, such as Women for Hire, the
Association of Latino Professionals in Finance and Accounting, and the national Association
of Black Accountants.
Staples provides many opportunities for associates to learn and grow in their careers. Staples
University offers world-class training to all associates including classroom, computer-based,