Staples 2006 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 2006 Staples annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

45
NONQUALIFIED DEFERRED COMPENSATION FOR 2006 FISCAL YEAR
The following table sets forth summary information with respect to each of the named executive officers
regarding contributions to our Supplemental Executive Retirement Plan (SERP) for our 2006 fiscal year.
Name
Executive
Contributions
in last FY ($)
Company
contributions
in last FY ($) *
Aggregate
earnings in
last FY ($)
Aggregate
withdrawals/
distributions ($)
Aggregate
balance at
last FYE ($)
Ronald L. Sargent . . . . . . 325,283 95,743 220,211 0 2,237,763
John J. Mahoney....... 81,171 40,394 76,557 0 831,185
Michael A. Miles . . . . . . . 40,284 40,052 7,865 0 195,001
Joseph Doody.......... 543,892 30,464 307,052 0 2,680,370
Demos Parneros . . . . . . . 36,871 29,330 22,984 0 337,179
Basil Anderson. . . . . . . . . 338,172 15,416 172,413 148,086 1,484,923
* These contribution amounts are included in the All Other Compensation column of the Summary Compensation
Table.
Our 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. Our SERP provides similar investments to our
401(k) plan which consist of 11 investment options as well as 3 asset allocation portfolios. Eligible executives, including
the named executive officers, may contribute up to 100% of their base salary and bonus and will receive matching
contributions in cash equal to 100% of each dollar saved, up to a maximum of 4% of base salary and bonus. The
matching contributions earn interest based on an interest rate established at the beginning of each year. For 2006, the
annual interest rate was 5.44%. The matching contributions generally vest based on hours worked during a calendar
year and are prorated over five years. Benefits generally are paid to the participant in accordance with a predefined
distribution schedule based on the requirements of Section 409A under the Internal Revenue Code. With the
exception of Messrs. Anderson and Miles, all of the named executive officers have been employed by us for more than
five years and are therefore fully vested in their SERP balances.
Potential Payments Upon Termination or Change-in-Control.
The tables below show the estimated incremental value transfer to each named executive officer under various
scenarios relating to a termination of employment. The tables below and the discussion that follows assume that such
termination occurred on February 2, 2007. The actual amounts that would be paid to any named executive officer can
only be determined at the time of an actual termination of employment and would vary from those listed below. The
estimated amounts listed below are in addition to any retirement, welfare and other benefits that are available to
associates generally.
Retirement or
Resignation
Termination
for Cause
Termination
Without
Cause
Resignation
for Good
Reason
Termination
Following
Change-in-
Control
Death or
Disability
Ronald L. Sargent
Cash Severance Payment . . . $ 0 $ 0 $ 5,090,521 $ 5,090,521 $ 7,635,781 $ 0
Value of Accelerated
Vesting of Equity
Compensation ..........
$ 0 $ 0 $ 11,535,181 $ 0 $ 15,185,281 $ 11,535,181
SERP Lump Sum Value
Payout ................. $ 2,237,763 $ 1,808,428 $ 2,237,763 $ 2,237,763 $ 2,237,763 $ 2,237,763
Continuation of Benefits . . . $ 0 $ 0 $ 268,326 $ 268,326 $ 403,546 $ 659,703
Life Insurance Payout . . . . . . $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Survivor Death Benefit
Payout .................
$ 0 $ 0 $ 0 $ 0 $ 0 $ 4,815,863
Excise and 409A Tax
(Grossed-up)............ $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Total ..................... $ 2,237,763 $ 1,808,428 $ 19,131,791 $ 7,596,610 $ 25,462,371 $ 19,248,510