Staples 2012 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2012 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 166

  • 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
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166

29
Description of Overall Executive Compensation Program
Pay Philosophy and Mix
We seek to achieve our executive compensation objectives by relying on the compensation philosophy articulated below and
through the use of the four compensation components, summarized in the table that follows. In determining the amount and mix
of compensation elements for each NEO, the Committee relies upon its judgment and not upon rigid guidelines or formulas.
Pay Philosophy
The Committee periodically reviews its pay philosophy. Our current pay philosophy is as follows.
Our executive compensation philosophy is that a significant portion of compensation should be directly linked to Staples'
overall performance, specifically:
Compensation program is pay for performance-based, with excellent results yielding relatively high pay and poor results
yielding relatively low pay.
Salaries and incentives are targeted to median of our peer group.
Pay Mix
The table below summarizes the core elements of our 2012 compensation program for our NEOs.
Base Salary + Annual Cash Awards + Long Term Cash
Awards + Equity Awards
Principal
Contributions
to
Compensation
Objectives
Attracts, retains and
rewards talented
executives with annual
salary that reflects the
executive's
performance, skill set
and value in the
marketplace.
Focuses executives
on annual financial and
operating results.
Links compensation
to strategic plan.
Enables total cash
compensation to
remain competitive
within the marketplace
for executive talent.
Rewards achievement of long term business
objectives and stockholder value creation.
Propels engagement in long term strategic
vision, with upside for superior performance.
Retains successful and tenured management
team.
Performance
Goals
EPS, sales and
operating income.
3 year cumulative
RONA
Time-vested restricted
stock (50% vest in 2
years; remaining vest in
3 years); Stock options.