Staples 2012 Annual Report Download - page 48

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39
that all compensation must be deductible. The Committee intends, to the extent practicable, to preserve deductibility under the
Internal Revenue Code of compensation paid to our executive officers while maintaining compensation programs that support
attraction and retention of key executives.
All annual cash bonus awards, long term cash awards, stock options and performance shares awarded to our NEOs are
paid pursuant to plans approved by our stockholders and are potentially deductible for us. Time-based restricted stock does not
qualify for the performance-based exception to Section 162(m), but the Committee in prior years has determined that the retention
benefit derived from such awards outweighed any potential tax benefit to us.
The compensation that we pay to our NEOs is expensed in our financial statements as required by U.S. generally accepted
accounting principles. As one of many factors, the Committee considers the financial statement impact in determining the amount
of, and allocation among the elements of, compensation. Stock-based compensation is accounted for as required under FASB ASC
Topic 718.
Compensation Committee Report
The Compensation Committee of Staples' Board of Directors has reviewed and discussed the Compensation Discussion and
Analysis required by Item 402(b) of Regulation S-K with management and, based on this review and discussion, recommended
to the Board that the Compensation Discussion and Analysis be included in this proxy statement.
Compensation Committee:
Paul F. Walsh, Chairperson
Carol Meyrowitz
Robert Nakasone