Staples 2014 Annual Report Download - page 17

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CORPORATE GOVERNANCE
www.staplesannualmeeting.com STAPLES 13
Compensation Committee
Paul F. Walsh
Chairperson
“Our executive compensation policies are designed to be
tightly linked to performance and the creation of long-term
value for our shareholders. We have a track record of soliciting
and responding to investor feedback as evidenced by
changes to our compensation program in recent years.”
Other Committee
Members
Carol Meyrowitz
Raul Vazquez
Meetings in 2014
2 in person, 2
telephonic
Introduction
The members of the Compensation Committee are independent directors, as defined by its charter
and the rules of the SEC and NASDAQ Stock Market. For more information about the responsibilities
of our Compensation Committee, see the “CD&A” section of this proxy statement.
Key Objective
The Compensation Committee’s responsibilities include recommending to the Board our
compensation philosophy and policies for senior management and aligning our compensation with
business objectives, individual performance and the interests of our shareholders. The Compensation
Committee sets the compensation levels of executive officers, including our CEO, establishes and
administers our equity and cash incentive plans and authorizes awards under such incentive plans.
Further Areas of Responsibility
✓ Establishes and oversees the administration of our employee stock purchase plans, retirement
plans and other employee benefit plans (other than ERISA-governed broad-based benefit plans
where administration is otherwise provided in the governing plan document).
✓ Oversees risks associated with the company’s compensation policies and practices and evaluates
the compensation program to help ensure that it does not encourage excessive risk-taking.
✓ Reviews and makes recommendations with respect to non-management Board compensation.
✓ Administers our clawback policy.
✓Prepares the Compensation Committee Report required under the rules of the SEC.
2014 Highlights
The 2014 Compensation Committee Report is included in the Compensation Committee Report
section of this proxy statement. In addition, in 2014, the Compensation Committee conducted
its annual pay for performance alignment analysis, peer benchmarking and risk assessment. The
Compensation Committee dedicated a significant amount of time to understanding the results of the
2014 say-on-pay shareholder vote and considering feedback received as part of the shareholder
outreach program. The compensation program was designed so that there are rigorous financial
metrics tying the compensation program directly to the success of our reinvention program and the
creation of long-term shareholder value. In 2014, the Compensation Committee also recommended
a new stock incentive plan (which was approved by shareholders at the 2014 Annual Meeting) and
evaluated retention and recruiting risks at various levels of the organization.