Staples 2007 Annual Report Download - page 44

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Principal Contributions to
Compensation Component Compensation Objectives Highlights
Performance based • Focuses executives on annual financial • Total cash compensation (base
annual cash bonuses and operating results. salary + target bonus) is targeted at
median of comparable peer group
• Links compensation to stockholder positions.
interests.
• Payout target ranges from 60% to 125%
• Enables total cash compensation to of salary and depends upon company
remain competitive within the wide and/or business unit performance
marketplace for executive talent. relative to earnings per share, return on
net assets, customer service and sales
targets.
• Minimum earnings per share
achievement is required for any payout.
• 0% to 200% of target payout can be
achieved.
• Target total cash compensation
comprised 23% to 27% of total target
compensation for our named executive
officers in fiscal 2007.
• The average payout, as a percentage of
salary, to the current named executive
officers over the past three fiscal years
(2005-2007) has been 68%.
Long term equity • Rewards the achievement of long term • 2007 fiscal year portfolio of stock options
incentives business objectives that benefit our (50% of target equity value),
stockholders. performance share awards (30% of
target equity value) and tenure-based
• Retains a successful and tenured restricted stock (20% of target equity
management team. value).
• Long term equity incentives at target
comprised 73% to 77% of total target
compensation for our named executive
officers in fiscal 2007.
• If we exceed performance share targets,
total compensation could reach the
90th percentile of comparable peer group
positions.
• Performance based long term equity
incentives at target combined with target
annual cash bonus brings ‘‘at risk’’ fiscal
2007 compensation to a range of 69% to
74% of total target compensation for the
named executive officers.
34