Staples 2013 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2013 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 185

  • 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
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185

36
The table below highlights our history of setting challenging performance goals.
Performance Award Payout/Achievement
Annual cash bonus awards
• Average 78% achievement of target 2009-2011
• None in 2012
• None in 2013
2011-2013 Long Term Cash Awards
(1 year goals over 3 year performance period)
• 41.38% achievement in 2011
• No achievement in 2012
• 14.34% achievement in 2013
2012-2014 Long Term Cash Awards
(3 year cumulative) • Not likely to achieve
2013-2014 Long Term Cash Awards
(1 year goals over 2 year performance period)
• 49.74% achievement in 2013
2013-2015 Performance Share Awards
(1 year goals over 3 year performance period)
• 49.74% achievement in 2013
Description of Overall Executive Compensation Program
Pay Philosophy
It is the company’s philosophy that:
• Pay should be performance-based, so that excellent results yield relatively high pay and poor results yield relatively
low pay.
• Salaries and incentives should be referenced to median peer group practices, but when making decisions about
compensation levels, the Committee relies upon its judgment and not on rigid guidelines or formulas.
Best Practices
We historically have implemented compensation best practices. These practices include:
• No employment agreements for NEOs
• No tax gross up payments in future agreements
• Stock ownership guidelines
• Aggressive "clawback" policy
• Predetermined stock grant date
• Double trigger change in control provisions in severance agreements
• Policy prohibiting hedging
• Minimal perks
• Independent compensation consultant hired by the Committee performs no other services for the Company