Staples 2013 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 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

38
The chart below shows, with respect to each of our NEOs, the portion of target total compensation that is “at risk” with
performance.
* The new performance shares, annual cash bonus awards, and 2013-2014 long term cash award represent "at risk" compensation since minimum levels
of performance must be attained in order for any payout to occur.
Base Salary
In March 2013, the CEO recommended a 10% increase in base salary for the Presidents of NAC, NAS&O, and Europe
in recognition of (a) low base salaries relative to the market and (b) the increased responsibilities under our reinvention plan
(Messrs. Doody and Parneros) and our reorganization efforts and improving performance in Europe (Mr. Wilson). The CEO
also recommended a 22% increase to Ms. Komola’s base salary based on her performance since assuming her role in February
2012, a step up in grade level and to calibrate her pay to market peers, as her salary was significantly below the market.
The Committee approved these increases and, after considering his position to market, experience in his role and
leadership of the reinvention strategy, also increased the CEO's salary by 5%. Including the increase, the CEO's base salary
remains below the median of base salaries for chief executive officers in our peer group. The CEO's base salary is 9% of his
annual target TDC. In general, the Committee allocates a greater percentage of the CEO's TDC to performance-based incentives
because the CEO is uniquely situated to influence our annual and long term performance.
Annual Cash Bonus Awards
Each of the NEOs was eligible to participate in our Amended and Restated Executive Officer Incentive Plan during
our 2013 fiscal year. Target awards for the annual cash bonus incentive are granted as a percentage of base salary. For 2013,
the target awards for Mr. Sargent, Ms. Komola and Messrs. Doody, Parneros and Wilson were 150%, 60%, and 85% of base
salary, respectively, an increase of 5%, reflecting a decision by the Committee to recognize increased responsibilities of their
roles and to bring their total target cash more in line with market practice for similar roles.
In 2012, we guaranteed Mr. Wilson a bonus for 2013 equal to 80% of his base salary, which was a one-time arrangement
in connection with attracting and recruiting Mr. Wilson to Staples in 2012 from a private equity firm. He subsequently requested,
and the Committee agreed, to reduce his 2013 bonus by $120,240 in light of performance and the expectation that bonuses
would not be earned by his team.